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Cryptocurrency thread


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10 hours ago, Code Monkey said:

Highly regulated? Okay, everyone that has their money in the bank, let's all try and go get our cash out together and see what happens. The banks only hold 10% of your money on site at any given time, the rest is loaned out and who knows what is done with it. On top of that, some studies show only 3% of the entire money supply is even physical anymore so where is all of our money? They regulate the supply with inflation and that just makes new 1s and 0s, inflating the money supply without printing any more bills to match it. Debit cards are just another form of digital currency and you'll see panic if people try to get their money out at the same time. There's nothing regulated about our fiat money system, that's why it's no longer backed by gold, it's backed by hopes and dreams.

 

Congratulations, you figured it out, it's not because it was a fad and people are no longer interested. Bitcoin goes through a halving period every (I think) 2 years. The time period between a Bitcoin being mined was 10 minutes but in order to dribble out the coins, every so often the blockchain will go through a halving period where it will permanently half the number of coins produced so then it will take 20 minutes. In the beginning there were so many coins, people had thousands of them because they were just being mined and thrown out constantly but now it's much slower and takes more time to receive one. So what happens is people hold during the lows (now) and then right before it halves, it spikes (like it has every 2 years), the smart people get out with their profits and then it crashes again right after the half because people no longer want it.

If you have money to spare and want to make some nic profits, purchase Bitcoin now and then hold it until it halves again. Instant double wealth.

To the person that reacted to this post with a disagree reaction, here are the references. I don't think it's fair to disagree with something that is technically accurate and cannot be disproven, no matter how much you want to disagree with it.

Fractional Reserve Banking requires banks to keep only a portion of their assets on site, usually 10% = https://www.investopedia.com/terms/f/fractionalreservebanking.asp

What happens when so many people try to access their fiat currency? You may have heard about something that happened in 1929 called The Great Depression. Banks were allowing people to invest with only a portion of the value so a lot of people took advantage of that. In 1929 when portfolios were falling, banks put out something called a Margin Call where they called for the rest of those values and people just didn't have the money to cover it, nor did the banks. Voila, poverty ensues. = https://www.investopedia.com/ask/answers/042115/what-caused-stock-market-crash-1929-preceded-great-depression.asp

Dollar values regulated by the government with inflation = https://www.investopedia.com/ask/answers/111314/what-methods-can-government-use-control-inflation.asp

In 1933 President Roosevelt abolished the gold standard = https://www.history.com/this-day-in-history/fdr-takes-united-states-off-gold-standard#:~:text=On June 5%2C 1933%2C the,to demand payment in gold.

Bitcoin halving every 4 years = https://www.investopedia.com/bitcoin-halving-4843769#:~:text=After every 210%2C000 blocks mined,bitcoins are released into circulation.

Literally every single thing I posted was correct.

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46 minutes ago, Code Monkey said:

To the person that reacted to this post with a disagree reaction, here are the references. I don't think it's fair to disagree with something that is technically accurate and cannot be disproven, no matter how much you want to disagree with it.

Fractional Reserve Banking requires banks to keep only a portion of their assets on site, usually 10% = https://www.investopedia.com/terms/f/fractionalreservebanking.asp

What happens when so many people try to access their fiat currency? You may have heard about something that happened in 1929 called The Great Depression. Banks were allowing people to invest with only a portion of the value so a lot of people took advantage of that. In 1929 when portfolios were falling, banks put out something called a Margin Call where they called for the rest of those values and people just didn't have the money to cover it, nor did the banks. Voila, poverty ensues. = https://www.investopedia.com/ask/answers/042115/what-caused-stock-market-crash-1929-preceded-great-depression.asp

Dollar values regulated by the government with inflation = https://www.investopedia.com/ask/answers/111314/what-methods-can-government-use-control-inflation.asp

In 1933 President Roosevelt abolished the gold standard = https://www.history.com/this-day-in-history/fdr-takes-united-states-off-gold-standard#:~:text=On June 5%2C 1933%2C the,to demand payment in gold.

Bitcoin halving every 4 years = https://www.investopedia.com/bitcoin-halving-4843769#:~:text=After every 210%2C000 blocks mined,bitcoins are released into circulation.

Literally every single thing I posted was correct.

Before fiat currency, a run on the bank was a very serious and big deal.  However, you're setting up a straw man (that everyone will suddenly want physical cash at the same time in a developed nation in 2022) in a world where less than two percent of money is physical.

As you said, it's all 1's and 0's in computers, and I'm sure you're aware that in most first world countries people's balances are insured.  Combine that with the ludicrous notion that everyone would suddenly want hundreds of thousands in cash in today's world, and your argument falls entirely flat.

When I said real money is regulated, I'm talking about a country's central bank adjusting their rates to combat runaway inflation; I'm talking about having numerous rules and regulations and checks and balances on large loans (think mortgages); I'm talking about having rules that require banks to report everything to their government.  Crypto currencies have none of that, and as such, are backed by nothing and hold accountability to nobody.

From this point on, there isn't going to be a "run on the bank" in a developed nation that uses fiat currency, and crypto is the financial equivelant of an NFT... 😉

The_More_You_Know.jpg

Edited by Dr. Morbis
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33 minutes ago, Dr. Morbis said:

Before fiat currency, a run on the bank was a very serious and big deal.  However, you're setting up a straw man (that everyone will suddenly want physical cash at the same time in a developed nation in 2022) in a world where less than two percent of money is physical.

As you said, it's all 1's and 0's in computers, and I'm sure you're aware that in most first world countries people's balances are insured.  Combine that with the ludicrous notion that everyone would suddenly want hundreds of thousands in cash in today's world, and your argument falls entirely flat.

When I said real money is regulated, I'm talking about a country's central bank adjusting their rates to combat runaway inflation; I'm talking about having numerous rules and regulations and checks and balances on large loans (think mortgages); I'm talking about having rules that require banks to report everything to their government.  Crypto currencies have none of that, and as such, are backed by nothing and hold accountability to nobody.

From this point on, there isn't going to be a "run on the bank" in a developed nation that uses fiat currency, and crypto is the financial equivelant of an NFT... 😉

The_More_You_Know.jpg

You're right but my argument is not whether it would happen, my argument is that the entire banking system would definitely, with 100% certainty fall apart if it did happen. We cannot all go to the bank and get our money, it doesn't exist. What you're saying is that the 1s and 0s are regulated but that's not money, that's just the representation of money that doesn't exist. The actual money itself is not regulated at all or very poorly. How can it be regulated when the banks don't even have enough of it to cover what they lend out? 

Cryptocurrency is absolutely backed by something and is 100% stable. The argument people try to make is that a Bitcoin could lose value by being worthless compared to fiat but once you compare it to fiat, you've lost the point. One Bitcoin will always equal one Bitcoin and as long as you own that specific token on the blockchain, nothing can take that away from you. Not the price of oil, not the price of gold, not sub-prime mortgages, not a war, absolutely nothing on this Earth can change that. I feel way more secure with the value of my cryptocurrency than the value of my fiat, the value of my cash in the bank could tank without notice by multiple factors.

Cryptocurrency isn't equivalent to NFT, it literally is the opposite of NFT. Coins (or ERC-20 tokens) are fungible, meaning one can replace the other and it makes no difference. Just like two $10 bills are the same as one $20 bill, they're fungible. However an NFT (or ERC-721 token) is a non-fungible token where all of the value is in owning that specific token, not just one that represents the same value.

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1 hour ago, Code Monkey said:

What you're saying is that the 1s and 0s are regulated but that's not money, that's just the representation of money that doesn't exist.

No, bro, the 1's and 0's is the money!  You know why?  Because it's backed by many large authoritative institutions.  You've got this whole "physical" aspect stuck in your head, but guess what, a $10 bill is just as meaningless as 1's and 0's in a computer unless and until it is validated by the society that has chosen to agree on what it represents.  And here's what real money represents: a demand on the economy.  When you have $100 in your bank account, that is a measurable demand on the economy that qualifies as legal tender for business and trade everywhere within that country/state/jurisdiction.  What do the 1's and 0's of a Bitcoin represent?  NOTHING other than itself, as you have so poignantly illustrated for us in your last post.   A bitcoin represents a bitcoin and nothing more.  Real money (either physical or digital - it doesn't matter) represents a specific and measurable demand on the entire economy within the jurisdiction it has been validated in.  'Nuff said... 😛

Edited by Dr. Morbis
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Administrator · Posted

The value of the dollar, In terms of what you can actually buy / obtain for that dollar, is SIGNIFICANTLY less volatile than the value of bitcoin.  
 

There are significant systems in place to assist in stabilizing the value of that dollar.  Such systems are not in place for bitcoin.  
 

Maybe my $1 can only buy half a loaf of broad compared to a couple years ago when it could buy a full loaf, but my (portion of) bitcoin can’t even buy a full bite from one piece of bread, compared to that loaf and what it could buy a couple years ago.  It will fluctuate in both directions, but it is extremely volatile, relatively speaking.  
 

At the end of the day, my (portion of) bitcoin has no inherent value to me and it doesn’t matter to me if I have the same exact fractional share as I did a year ago, if my practical use of it changes.

 

 

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Administrator · Posted

Easily the bulk of people getting into Bitcoin the past few years did so with the sole hope that they'd be able to cash it out for fiat, which is very telling.

Case in point:

On 11/8/2022 at 9:48 PM, Code Monkey said:

I'm more upset that I ALMOST became a millionaire (CAD) for the first time in my life at the peak in 2021. Now I'm just a lowly single comma-er that still has to work.

Code Monkey, our resident diamond handser (a Bitcoin is a Bitcoin!) is still doing the conversion to fiat in his value calculations.

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Social Team · Posted
21 hours ago, Gloves said:

Easily the bulk of people getting into Bitcoin the past few years did so with the sole hope that they'd be able to cash it out for fiat, which is very telling.

Case in point:

Code Monkey, our resident diamond handser (a Bitcoin is a Bitcoin!) is still doing the conversion to fiat in his value calculations.

If you change out Bitcoin with WATA graded video games, you'd still be correct in your assessment.  People are investing into Bitcoin as an asset like a stock.  Not to actually use it as it's real intent of being a digital currency.  Same thing with video games, they were not meant to be an asset but to be played for entertainment.  Not that they can't be both.  But if there is no use for entertainment.  IE a PS3/4 game that is a purely online only game that has it's servers shut down, it will plummet in value.  When Bitcoin is stop being used as an actual currency it will plummet as well.  

And to SpacePup's point, you DON'T want to use a currency that is unstable as fuck.  So that reality is what makes me think Bitcoin is going to not work in the long term.  

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I know crypto made some people wealthy, but it seems like far more people just lose, and lose big time -

When a cryptocurrency you never heard of drains your life savings

https://www.marketplace.org/2022/06/09/when-a-cryptocurrency-you-never-heard-of-drains-your-life-savings/

Steve Insall has watched his life savings disappear by the second in an app on his phone. He spent most of Tuesday, May 10, in his condo, trying to withdraw anything that remained of the $320,000 balance that was there just days before. The app wouldn’t let him. While watching Bloomberg TV talk about a cryptocurrency he only learned of the day before, he tried to hide his panic from his wife.

Insall was losing his savings because of the crash of terraUSD, an algorithmic “stablecoin” that shed $60 billion in value in a matter of days. Stablecoins are a fixture of the cryptocurrency economy and are supposed to never depeg from the dollar.

Insall is one of nearly 5,000 retail investors who made $47 million in deposits into Stablegains, a now defunct company that offered a crypto facsimile of a savings account with interest rates up to 15%.

Yeah, interest rates up to 15%. Boy, what a shocker that that ended up not being true.

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9 minutes ago, avatar! said:

I know crypto made some people wealthy, but it seems like far more people just lose, and lose big time -

When a cryptocurrency you never heard of drains your life savings

https://www.marketplace.org/2022/06/09/when-a-cryptocurrency-you-never-heard-of-drains-your-life-savings/

Steve Insall has watched his life savings disappear by the second in an app on his phone. He spent most of Tuesday, May 10, in his condo, trying to withdraw anything that remained of the $320,000 balance that was there just days before. The app wouldn’t let him. While watching Bloomberg TV talk about a cryptocurrency he only learned of the day before, he tried to hide his panic from his wife.

Insall was losing his savings because of the crash of terraUSD, an algorithmic “stablecoin” that shed $60 billion in value in a matter of days. Stablecoins are a fixture of the cryptocurrency economy and are supposed to never depeg from the dollar.

Insall is one of nearly 5,000 retail investors who made $47 million in deposits into Stablegains, a now defunct company that offered a crypto facsimile of a savings account with interest rates up to 15%.

Yeah, interest rates up to 15%. Boy, what a shocker that that ended up not being true.

Some people don't seem to understand the concept of too good to be true.

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