World, Writing, Wealth discussion
Wealth & Economics
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Bitcoin: is it here to stay and flourish?
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If you are part of a bloc of nations whose own currencies are garbage, and you're losing faith in the currencies of the larger nations who have been printing funds like mad, crypto might be a useful alternative fiat currency. It could allow easier trade between the nations in your bloc, without a significant risk of one nation tanking its value and crushing your economy.The problems include market uncertainty and availability to rural and poor communities.
I’m concerned about a gigantic toll on energy needed to mine crypto
Nik wrote: "I’m concerned about a gigantic toll on energy needed to mine crypto"I wonder is there a point where the price of electricity makes such mining unprofitable?
Ian wrote: "Nik wrote: "I’m concerned about a gigantic toll on energy needed to mine crypto"I wonder is there a point where the price of electricity makes such mining unprofitable?"
That would reduce supply, which would raise the price. Eventually, an equilibrium would be found.
Yes, but such an equilibrium assumes there is a genuine demand. The demand for Bitcoin is largely speculative.
That's what makes its adoption by several nations interesting. A bloc of nations using it as their currency is not speculation. It is trade.
Except in the link half of it was to back bonds to borrow "real" money. It will be very interesting to see how this mix of uses turns out.
J. wrote: "An interesting op-ed by Steve Forbes:https://youtu.be/TRHVnoIyWD8"
An interesting insight into Turkey's predicament :)
I didn't know what crypto currency was so someone explained it to me and I still don't know what it is.
Barbara wrote: "I didn't know what crypto currency was so someone explained it to me and I still don't know what it is."A fiat currency without a bunch of politicians swearing that it's good.
Barbara wrote: "I didn't know what crypto currency was so someone explained it to me and I still don't know what it is."Some digital patterns that some people claim has value, and enough criminals trade with it and enough gamblers play with it that the illusion persists
J. wrote: "Barbara wrote: "I didn't know what crypto currency was so someone explained it to me and I still don't know what it is."A fiat currency without a bunch of politicians swearing that it's good."
That is as good an explanation as I have heard yet.
Meanwhile crypto goes down, as do some stock-exchanges...
Those who gambled tend to want to get out before they lose even more, which leads to those who wait to get out lose more still. The behaviour is what David Lange (one of our PMs) described as like "reef fish"
And they couldn't stash away crypto and probably forgot to cash a lot out and stash it. My guess is they will be incarcerated for some time
An entire new industry, which existence is not necessarily justifiable allowing for its energy consumption, with its own miners, cops & robbers and what not..
And trhe fascinating thing is it is based on absolutely nothing.
True, might be invalidating a physics'/chemics' maxim that you can't have something from nothing :)
Ian wrote: "And trhe fascinating thing is it is based on absolutely nothing."All that most modern currencies are based on is the trustworthiness of politicians.
J. wrote: "Ian wrote: "And trhe fascinating thing is it is based on absolutely nothing."All that most modern currencies are based on is the trustworthiness of politicians."
And that is not an encouraging thought.
And I may have been wrong about "absolutely nothing". It may have been a gamble on greed, and there is plenty of that around.
Ian wrote: "And trhe fascinating thing is it is based on absolutely nothing."I am still trying to figure out why anyone is interested in this stuff.
Because they think they are going to get rich with so many people buying the limited supply. It is the same reasoning that makes pyramid schemes work
We'll see. Lots of people made money and got out.
In my view, this is a positive trend and a change of era cryptocurrency will become an indispensable part of our future development.
Hi Marie & welcome! We have also an introduction thread, if you’d like to share a few words about yourself 😎
Nik wrote: "Hi Marie & welcome! We have also an introduction thread, if you’d like to share a few words about yourself 😎"Of course I am more than happy to do so because I have been working in this field for a long time and have made substantial profits in this market I believe it is a great financial product for this era
15-th (on intro thread) or 25-th (here), to solve the confusion? :)
An accessible article on El Salvador's new bitcoin based bond.
REF: https://www.exodus.com/blog/the-bitco..."
And if Bitcoin tanks, El Salvador simply defaults. However, there is a case for thinking it might work when you see other countries planning the same thing. If there is a sequence of countries promising to buy that huge amount of bitcoin, its price must go up