General Category > Economy/Business
Cryptocurrency Thread
DefiantMassRINO:
Crypto is no different than any other means of storing and transferring wealth, like any other free-floating currency. The value lies in what someone is willing to pay or exchange for it.
In the past, BitCoin spiked when Chinese were desperate to aquire it so they could electronically export their wealth out of China behind the back of the Chinese Communist Party.
The key to it working are the underwriting and reserve margins of the exchanges to support crypto-conversion transactions. If everyone rushes to sell their BitCoin at once, the exchanges may not have the resources on hand to execute every transaction on demand - exactly what happens when their is a run on a bank.
If the full faith and credit of the United States wasn't available to support the Dollar, it would be just another piece of paper. In a similar manner, the crypto exchanges are the key to the liquidity of the crypto currency.
kevindavis007:
A beginner's guide to bitcoin and cryptocurrency
https://www.msn.com/en-us/news/technology/a-beginners-guide-to-bitcoin-and-cryptocurrency/
catfish1957:
--- Quote from: kevindavis007 on December 15, 2021, 10:30:46 pm ---A beginner's guide to bitcoin and cryptocurrency
https://www.msn.com/en-us/news/technology/a-beginners-guide-to-bitcoin-and-cryptocurrency/
--- End quote ---
bad link...
Free Vulcan:
Like @DefiantMassRINO said, crypto is just another medium of exchange and store of wealth.
As such it falls under the same economic and financial rules like any other economic asset. The problem is the techno geeks, in their usual god-complex hubris, think all the smoke and jargon they utter makes crypto immune from those rules. (My favorite being something that sounds like a junior high drama queen cheerleader, complete with eye roll 'But you're ooooooooooolllllllllllllllld, you are a fossil and just don't understannnnnnnnnnnnd!')
It does not.
All exchangeable assets fall under the most basic rules of economics - scarcity, or lack of it. AKA supply and demand, the ratio and balance thereof.
And a great deal of crypto is about as sound as our own Federal Reserve fiat currency, that can be minted anytime, anywhere, and in any amount. Not exactly a great improvement.
Physical currencies like gold and silver hold value and attract users because they require skin in the game to create, in that case extensive investment in mines and equipment that create a breakeven level as either incentive or disincentive to extract. If metals become too cheap and lose too much value, it will not be worth it to mine, and supply will be static till it does so again.
Bitcoin, the original crypto, is the model for the right kind of currency, at least on a basic level. It requires proof-of-work to be minted, in that case crunching the algorithms before adding them to the block chain. That creates a scarcity pinch point where it's only worth 'mining' if it is worth the time of the miner.
There are a whole bunch of other issues with crypto, such as the privacy of the block chain, the electrical resources used to mine it, and the breadth of distribution of the currency itself, to name a few. There alone have been publicized cases of millions of current dollars of bitcoin being on computers that ended up in the landfill.
So while I'm not against crypto, I try to avoid the hype and look for legit opportunities based on solid principles.
Cyber Liberty:
--- Quote from: catfish1957 on December 15, 2021, 10:45:17 pm ---bad link...
--- End quote ---
Try this one....
https://www.msn.com/en-us/news/technology/a-beginner-s-guide-to-bitcoin-and-cryptocurrency/ar-AARQW5K
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