...how do you excuse away the violent daily moves of 6-7%. Is that how a reserve currency acts?
For those that argue that Bitcoin is the "currency" of the future...
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A really smart guy i know had me ready to jump into crypto about 5 months ago.
Thankfully i stayed away.
Not buying something I don't understand.
Y'all have fun, though.
Y'all have fun, though.
People that are buying it don't understand it either.
I think it is easily explained by how thinly held and traded bitcoin still is relative to USD.
How do you excuse the dollar losing over 20% of its value since bitcoin's inception?
Is that how a reserve currency acts?
Not true.
Bitcoin is hard money. The amount of the currency is limited by the protocol.
The rules in Monopoly state that if the bank is short you can just create more.
So in reality, USD is more like Monopoly money than bitcoin.
Math.
Literally.
Agreeing to buy Bitcoin is agreeing to purchase a ledger entry in a fixed monetary pool.
If you’re asking what gives Bitcoin value, you must first accept that value is a subjective human determination.
Bitcoin has value as a medium of exchange that the government cannot debase, as they do with all the fiat currencies.
Until someone finds a way to crack the code and steals all your bitcoin.
It's going to happen.
A fixed amount from what I understand. You can’t say the same about the dollar.
Huh? They continue to mine and create new cryptos on the daily.
And the massive computing power require to do that is destroying our climate.
The neat thing about open source is that the code is there for anyone to find a flaw in.
Anytime you’ve read about Bitcoin being stolen it involves an exchange being robbed for lax security, not a crack of the protocol’s encryption itself.
Quantum computing reaching the power to crack existing encryption in the requisite time window will be realized someday, but encryption doesn’t sit still either. The protocol will ultimately continue to be upgraded to maintain the transaction security of the ledger, as Bitcoin is nothing else.
link? And bitcoin has list about 60% of its value in how long? Yeah, bitcoin has some real legs.
It's not supposed to be a currency, but a fixed commodity, like gold. There can be only so many bitcoin created, by design. Once they're "mined," they're gone. The amount and value of energy required to both "mine" new bitcoins, and to process each and every transaction is also continually growing, by design, and will eventually outstrip the actual value of the bitcoins themselves. So enjoy the house of cards while it lasts, and hope you sell out before the inevitable collapse.
The development of alternative cryptocurrencies doesn’t change the size of the pool of Bitcoin.
Cryptocurrency are a cyclical asset with a 4 year cycle. 2 year up cycle, 2 year down cycle. We are in the down ward trend. When bitcoin gets to the 15,000 to 20,000 range that is the time to buy, however I prefer ethereum and cardano. I would consider investing in a stock like Riot or COIN.
Link to what?
The devaluation of the dollar?
Federal Reserve Bank of Minneapolis inflation calculator.
Takes $1.26 to buy what $1 would buy in 2009.
It takes over $5 to buy what $1 would buy when I was born.
Is this how a reserve currency acts?
The 21 million coin limit is known, though. This isn’t an unlimited fiat currency.
There may well be infinitely inflating cryptos, but Bitcoin isn’t one.
You are correct that it is currently still being mined.
Until now, nineteen million bitcoins have been mined, leaving only 2 million to be mined in the future. But the last two million coins will take the most time because of the reduction feature stated above. Experts are predicting that the remaining bitcoins will be mined by 2140.
The reality is in the last 13 years they’ve stolen 20% of our purchasing power from the dollar.
Over my lifetime they’ve taken more than 80% of the purchasing power from the dollar.
The inexorable march of math as the government runs perpetual deficits means the debasement you’ve known your whole life for the dollar isn’t going to end.
“The law of supply and demand is not to be conned.“ Alan Greenspan.
Yes think of cryptos trading in an upward trending wave pattern. From trough to apex it takes about two years. The next 2 years it is forming a new base about 75% below the previous highs. This will be the third full cycle since I have been watching it. Still a bit weak for a trend but it makes sense and this will likely be the first time I will ever try to dabble in it. I won’t allocate more than 5% but I will put some to work.
sure that’s how a reserve currency acts. Especially in a fiat system like we currently have. At least I know what my dollar will get me within reason. Can you say the same about a bitcoin?
‘I’ll believe it when I see it. Regardless, no one is using crypto until there is less volatility with it. Period.
You can pay someone to read the protocol for you.
It's completely open and auditable.
This limit isn't a guess. It's literally written into the code.
I don't disagree at all with that logic.
In my view this thing is still so nascent.
But I still expect bitcoin to remain a medium of exchange with focus on store on value, not because transactional hurdles are insurmountable, but because of Gresham's Law.
If you had dollars and bitcoin, why wouldn't you spend the one that will surely depreciate instead?
I’m not the one to quote for crypto, but my understanding is each crypto currency has a fixed amount and there will never be more. There are new crypto currency’s though but I would assume they are at a much lower value than established crypto currency.
What I find annoying from the crypto people is they are, in some regard, running a pyramid scheme. They never stop advertising/marketing the crypto they are invested in in hope that more will invest which will raise the value of their ‘coin’.
The biggest thing is it's still incredibly early in the crypto world with only 4% of people globally invested in it. What will happen to its value when it's 25%?
Once it's more widely accepted as a form of payment for goods and services the value is going to increase rapidly. For example AMC movie theaters accepts Bitcoin, Ethereum, Dogecoin and Shiba Inu as payment using the Bitpay app.
I will say if you ever wanted to jump in now is the time because everything is on sale.
Remember once upon a time investing in wacky new stuff like Amazon and Google seemed crazy and probably got you mocked by your friends.
Once it's more widely accepted as a form of payment for goods and services the value is going to increase rapidly. For example AMC movie theaters accepts Bitcoin, Ethereum, Dogecoin and Shiba Inu as payment using the Bitpay app.
I will say if you ever wanted to jump in now is the time because everything is on sale.
Remember once upon a time investing in wacky new stuff like Amazon and Google seemed crazy and probably got you mocked by your friends.
You could do the same with Bitcoin. It is just made up. Ask Warren Buffet what he thinks of it.Not true.
Bitcoin is hard money. The amount of the currency is limited by the protocol.
The rules in Monopoly state that if the bank is short you can just create more.
So in reality, USD is more like Monopoly money than bitcoin.
He is speculating. Nothing wrong with that of course, bu.t never be fooled into using "investing" in the place of "speculating".
The idea of accumulating it by having computers solve pointless math computations makes me scratch my head.
i probably could use a 4 hour podcast because it makes zero sense to me.
i probably could use a 4 hour podcast because it makes zero sense to me.
@soybean,
Are u saying cryptocurrency is similar to Dippin Dots? The ice cream of the future.
Are u saying cryptocurrency is similar to Dippin Dots? The ice cream of the future.
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