Here's why this billionaire investor predicts crypto currencies will 'go to zero'

Marketwatch ^ | 8/30/2021 | Barbara Kollmeyer

[PIF]

The dollar is backed by the worth of all the land, minerals, oil, gas etc. and improvement owned or controlled by the federal govt.

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Many would argue that the dollar is backed internationally as a Reserve Currency solely on the strength of the US Military, now in disarray.

[FLT-bird]

Ding! I love it when people claim it’s all a scam or that there’s nothing backing cryptocurrency. They likely don’t even know what Blockchain is and don’t have the slightest clue what different projects do.

[Honest Nigerian]

Let’s look at it this way - when Zer0bama sent lotsa money to Iran, did he send greenbacks? Or 0bamaC0in?
And why is Bitcoin the be-all end-all of alternate currencies? These things are pretty much like credit card points: someone is always comes out with a new points program.

[DeFault User]

I’m investing in tulip bulbs. They’re due for a big comeback.

[TangoLimaSierra]

Yep, you nailed it.

[Retain Mike]

The dollar is backed by the full faith and credit of the federal government, which amounts to wishful thinking. At the margin the Treasury creates debt, and the Federal Reserve buys it. This process keeps working because the other members of the G-20 behave in the same way. Crypto currency would probably go to zero when too many people see there is no difference and governments quash this competitor.

[crusty old prospector]

Lead and brass would be better metal choices.

[crusty old prospector]

Same here. Stinks like a ponzi scheme.

[Disestablishmentarian]

There is nothing backing any currency, except its notional value.

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Not quite true, though a good point to make.

US dollars have been backed for decades by oil, being required to acquire same in international markets including OPEC.

This basis has been, in turn, backed by the U.S. military, primarily the Navy.

ALSO, U.S. dollars are required to pay U.S. taxes; hence they are a cost of doing business in America, and this is an important part of their intrinsic value. I don't see the U.S. Treasury accepting Bitcoin any time soon, nor Euros, Yuan etc.

[corkoman]

Crypto currency would probably go to zero when too many people see there is no difference and governments quash this competitor.

So fun the silly wagging tongues.

[phormer phrog phlyer]

Sorta like the fiat US dollar then.

[nascarnation]

I think right now the US dollar is the best of a bad lot, in other words most other countries are screwing the pooch worse than we are on budget deficits. So everybody is pretending that the US is really OK.

But someday this has to blow up.
I’m not a fan of digitals but I do have gold and silver.

[Right_Wing_Madman]

you have no idea how much the U.S. Treasury has printed

The Federal Reserve, a private bank, prints money, not the U.S. Treasury. This is an important distinction. If the Treasury could print money, it would mean the executive branch controls monetary policy - making the President all too powerful.

[Right_Wing_Madman]

Cryptocurrencies, regardless of where they’re trading today, will eventually prove to be worthless.

Cryptocurrencies, like the internets, are here to stay. Many will become worthless, others will soar in value. In time, supply and demand, as usual, will sort it out.