Any Crypto Investors (Gamblers)?

[cshubhra]

In your opinion, what is stopping crypto from being (or at least functioning) a fiat currency?

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Some would argue that the blockchain tech behind crypto holds a certain value.

1. Every currency in the world is backed by a sovereign government, and the intrinsic value of that currency is backed by economic activity of that country, often measured as a function of GDP. Without a political backing, and an intrinsic valuation method by economic activity, a currency is doomed

2. The technology may have potential value - but the currency not

 

[brian64]

It is, by any definition, a pyramid scheme. It supports organized and unorganized crime...the oligarchs are able to use it to bring governments to their knees.

I couldn't agree more...but we've been stuck with the federal reserve for over a hundred years now, so apparently there's no getting rid of it.

 

[ron123]

Long story short, none of us know. As far as intrinsic value, that’s a valid point but while our government does own assets, we’re printing/creating new money as fast as ever. My opinion or guess is that there will be a shake up at some point and we’ll end up with a handful of cryptos surviving when all’s said and done and the rest will fall to the wayside. And yeah, mining is bad. If more businesses start accepting Bitcoin and or other cryptos, their validity becomes more real and if the opposite happens, they’ll all go away. The lack of physical dollars and banks/buildings is what I think keeps people away because it’s hard to grasp it as real. However more and more transactions are cashless and done with cards or electronically online. Paying with Bitcoin could become as simple…unless it doesn’t.

 

[3rdguy]

I will go with Warren Buffet on this one. It won’t end well.

The Capital Gains proposal right now would apply to those making 1 million or more/year on reportable income. Good for you if you are if you are in that bracket!

 

[KafkaStoleMyBike]

I have a friend who retired in his 30’s thanks to crypto trading, and has been all about blockchain for years- he’s now venturing into NFT’s. I’ve played around with crypto and made a nice profit, but I won’t be pressing my luck. I don’t think it will be viable long term, especially once it becomes more regulated.

 

[KafkaStoleMyBike]

Long story short, none of us know. As far as intrinsic value, that’s a valid point but while our government does own assets, we’re printing/creating new money as fast as ever. My opinion or guess is that there will be a shake up at some point and we’ll end up with a handful of cryptos surviving when all’s said and done and the rest will fall to the wayside. And yeah, mining is bad. If more businesses start accepting Bitcoin and or other cryptos, their validity becomes more real and if the opposite happens, they’ll all go away. The lack of physical dollars and banks/buildings is what I think keeps people away because it’s hard to grasp it as real. However more and more transactions are cashless and done with cards or electronically online. Paying with Bitcoin could become as simple…unless it doesn’t.

There’s a crypto ATM down the street from me, so I guess some people are headed in that direction. I still remember a time when I’d carry cash in my wallet.

 

[karam]

Long story short, none of us know. As far as intrinsic value, that’s a valid point but while our government does own assets, we’re printing/creating new money as fast as ever. My opinion or guess is that there will be a shake up at some point and we’ll end up with a handful of cryptos surviving when all’s said and done and the rest will fall to the wayside. And yeah, mining is bad. If more businesses start accepting Bitcoin and or other cryptos, their validity becomes more real and if the opposite happens, they’ll all go away. The lack of physical dollars and banks/buildings is what I think keeps people away because it’s hard to grasp it as real. However more and more transactions are cashless and done with cards or electronically online. Paying with Bitcoin could become as simple…unless it doesn’t.

That's part of it, but it's also why in the 17th century onwards banks would build impressive, grandiose buildings, exactly to instill in people the confidence that leaving their assets with them is safe. Almost like churches but let's not go there...

The financial crisis showed us a number of things, among them that nothing is inconceivable. I'm following Warren Buffet too, and listen to my brother who says "if it's regulated it's over". Can't believe it won't be regulated once it is actually being used.

 

[sablebrush52]

I think the practicality of a de-centralized currency will show it's value when global politics become more volatile.

Whatever comes of this RMB vs USD 'Cold War' right now, I have a suspicion crypto will benefit.

Plus, the future is digital (and virtual/augmented). Stuff like Ethereum is just starting to explore the possible "real world" applications of this de-centralized authentication/instant transaction.

Perhaps. Governments would want to regulate it in their own interest and the protection of their varied economies. One issue with it is that it is not secure and is hackable. The idea that Bitcoin, Etherium, Dogecoin, are currencies digital or otherwise, is a logical contradiction. While it is theoretically possible to use Bitcoin as a medium of exchange, it's not being used that way. People don't buy Bitcoin so that they can use it to pay for dog food. They buy it to hold onto in the expectation that it will rise tremendously in value and that they will be able to trade it for something else with some sort of accepted intrinsic value. And crypto "value" is defined in "fiat" currency valuations because crypto has no actual status as anything but a thing unto itself. Crypto "currencies" are simply speculative bets.
The digital world is in its infancy, as is digital finance. There's going to be quite a few dead ends, like any effort made in an infant technology. The block chain has potential value, but these "currencies" are not the block chain, and there will likely be better models designed in future which will supplant block chain.

 

[logs]

For the people who do actual blockchain mining it might hold value. Aside from that it seems to be a pyramid scheme for gamblers and thrill seekers.

 

[Worknman]

I haven't really quite figured out what to think about bitcoin, I understand the arguments from both sides. But the world is changing, its going digital, and the old system that made the Warren Buffets of the world rich plus our current financial system is possibly on its way out. There's a new generation coming up and they don't see the world thru the same lens, and if they believe that bitcoin has value then it is so. There's lots of stuff that doesn't have intrinsic value but yet it still holds it nonetheless.

 

[logs]

I haven't really quite figured out what to think about bitcoin, I understand the arguments from both sides. But the world is changing, its going digital, and the old system that made the Warren Buffets of the world rich plus our current financial system is possibly on its way out. There's a new generation coming up and they don't see the world thru the same lens, and if they believe that bitcoin has value then it is so. There's lots of stuff that doesn't have intrinsic value but yet it still holds it nonetheless.

I think in principle crypto has utility but unfortunately the wild valuation overshadows it's potential utility and turns it into a crazy speculative investment. It's become voodoo economics.

 

[username]

I put a couple bucks into doge coin when it was 3 cents a coin becouse I figured I could afford to lose it. It shot up to over 30 cents a coin and I sold it. Not bad for a long shot gamble. To me a investment is for the long term and I don’t see that happening with crypto it’s way to risky for me to invest real money into.

 

[olkofri]

The technology may have potential value - but the currency not

Blockchain technology's value is no longer potential: it's at the core of certain ongoing projects that some would call novel and others nefarious: i.e. ID 2020.

 

[mso489]

I hope crypto currency doesn't screw up currency per se, sort of what the derivatives have done to investment banking and high finance. Math geniuses contrive mysterious investments that no one understands, including them, except they know how to make this pay and others don't. The tulip mania indeed.

 

[Zack Miller]

Watch this

I was going to post that.

 

[cshubhra]

Blockchain technology's value is no longer potential: it's at the core of certain ongoing projects that some would call novel and others nefarious: i.e. ID 2020.

Hmmm ?

 

[EA-6B]

Was in it & mostly got out long ago, but I've been looking at some of the newer wallets out there recently. They look promising in terms of features & ease-of-use. Here's one that might work for me - Klever Wallet | Best all in one Cryptocurrency Wallet - https://klever.io/en/ - based on what it may soon support, & some old stuff I found floating around inside of my computer. I'm not recommending it, just showing what I'm looking at.
If I start using it in any capacity, maybe I'll give an update.

 

[brian64]

There is an interesting alternative to both blockchain and cryptocurrencies that I've been aware of for a few years now, and sort of passively followed its development. Some of you may be interested in looking into it. It is Raidatech and Cloud Coin...it is not blockchain and it is not a cryptocurrency.

It claims to solve all of the inherent problems with blockchain and cryptos...the immense power requirements for "mining", the data security issues, and the fact that crypto is not private...all transactions are stored on the blockchain.

Allegedly, none of these issues exist with Raida and CC.

 

[olkofri]

and the fact that crypto is not private...all transactions are stored on the blockchain.

 

[Ahi Ka]

I think I need a bowl. I’m so confused.