The Coming Crisis: Bitcoin vs. Dollar?

originally posted by: liejunkie01
There is literally so much money invested not only in the stock market but in other ventures and holdings.

I believe that it will drive all world markets up, not down. There is literally so much money hidden and in circulation that a lot of people do not need to withdraw from the stock market to invest in crypto, hell Johnny had that $10,000 under his bed beside his shotgun.

Crypto is the shiny new toy to play with, but in the long run kids end up going back to the old reliable toy(cash) to make them feel warm and fuzzy.

I agree with your first two paragraphs. With your third paragraph, I disagree. Crypto is the future of money because it is a superior system. It is faster than cash, more secure than cash, and has an easier interface that will soon allow someone to control their investments themselves. Why would someone go back to cash?

As far as the rest of your post goes, all of that money not in crypto? It will be within 100 years.

I just recently jumped on the hype and bought some bitcoin. Over the holidays, I did a lot of reading about the currency and even more about what underlies all cryptos - blockchain. There are serious limitations in blockchain some of which have been mentioned. Because blockchain is based on hashes, finding a block with a unique hash gets exponentially more difficult the longer the chain gets.

Yesterday morning, I did a transfer from one exchange to another. It took 24 hours before the transfer completed. This by itself makes me think crypto won't ever replace fiat currency. I personally don't have the patience to deal with that.

When I first started investigating cryptos, one of the wonderful features claimed is you don't have to deal with traditional banks and their fees. What a joke! It cost me $19 to convert USD to bitcoin. It cost me another fee to transfer it to a different wallet.
If I buy something with bitcoins, I'll pay another fee. Wow, fees everywhere!

One other thing that really bothers me and what could kill the future of cryptos is the cryptography itself. Right now, there isn't a computer in the world that will be able to decrypt the keys that protect your wallet. But, in the very near future, quantum computing will be a reality and with that technology, the encryption we know today becomes useless. A quantum computer will decrypt a key in seconds.

I'm investing in bitcoin as I do anything else. Its good to diversify.

originally posted by: darkbake

originally posted by: liejunkie01
There is literally so much money invested not only in the stock market but in other ventures and holdings.

I believe that it will drive all world markets up, not down. There is literally so much money hidden and in circulation that a lot of people do not need to withdraw from the stock market to invest in crypto, hell Johnny had that $10,000 under his bed beside his shotgun.

Crypto is the shiny new toy to play with, but in the long run kids end up going back to the old reliable toy(cash) to make them feel warm and fuzzy.

I agree with your first two paragraphs. With your third paragraph, I disagree. Crypto is the future of money because it is a superior system. It is faster than cash, more secure than cash, and has an easier interface that will soon allow someone to control their investments themselves. Why would someone go back to cash?

As far as the rest of your post goes, all of that money not in crypto? It will be within 100 years.

I wouldn't dismiss the use of cash. If we meet in person and I buy something from you, handing you cash is an immediate transfer with no fees. You can the spend that cash as you wish. And, because it's cash, there's no record of the transaction so no one could make you pay tax on the earnings. Now, if I were to pay you in bitcoin, i will be charged a fee and you'll have to wait until it's in your wallet. There is now a record of the transaction and once the IRS infiltrates the exchanges, you'll have to pay tax on the income.

If you want to get rid of your cash, let me know and you can mail it to me

a reply to: LogicalGraphitti

As far as scalability goes, I heard Ethereum is working on that. I'll have to do more research.

Also, the government could invest in clean energy and coin miners in order to make money and reduce our taxes. The renewable energy would be important in order to mitigate effects of cryptocurrency mining on climate change. Maybe this demand for energy would drive research into clean energy?

If there is a market for it, there would be more people willing to invest in this pursuit.

originally posted by: Gothmog

The Coming Crisis: Bitcoin vs. Dollar?

No ,imagination vs fiat.

Imagination?

How many dollars does it take to produce one bitcoin? Do you even know?

Once you figure that out then compare that to how many dollars it costs to produce one dollar.

originally posted by: darkbake
As people sell the dollar to buy cryptocurrencies, eventually, we should see the value of the dollar drop as fewer and fewer factories, individuals, talent, and resources tie their value into the dollar and go with cryptocurrencies instead.

There are more people in the world than there are bitcoins to go around.

If you tried to pay everyone their salaries in bitcoin, you'd soon have a shortage of cryptocurrency problem.

But, with dollars, you can pay everybody something.

a reply to: darkbake

I would think that a "difficult to repair" cable cut near the crypto coin exchanges or strategic outage of parts of the internet would crash and burn the coins or allow someone on the "right side" of the outage to take advantage and screw other coin holders while making lots of money at their expense.

imgur.com...

this book was written in 1999 and i think it has a pretty good idea of where things are going.

Decentralized currency will lead us to a technological renaissance and sovereign individuals.

For conspiracy site sure seems to be a lot of people afraid of decentralized power...

originally posted by: DBCowboy
a reply to: darkbake

Bitcoin is a gateway to globalism.

Just imagine, controlling a nations entire wealth with the power grid.

Yah you got it, bitcoins cost too much to clear transactions, I think right now it costs almost $50 to perform any bitcoin transaction, so it's only realistic for transactions greater than $1000, not many things in the real economy are sold for less than $1,000.

It is not scale variant. There are other coins which are scale variant but they don't offer the encryption. It's give and take as far as cryptos go. The NSA performed a study in 1995 with MIT to study various cryptos with different strengths and weaknesses:

HOW TO MAKE A MINT: THE CRYPTOGRAPHY OF ANONYMOUS ELECTRONIC CASH

Laurie Law, Susan Sabett, Jerry Solinas

National Security Agency Office of Information Security Research and Technology

Cryptology Division

18 June 1996

groups.csail.mit.edu...

But in general e-currencies have been under development since the early 1980s. This article here is an excellent summary, takes about 15 minutes to read:

www.peakprosperity.com...

But in general anyone can create a new cryptocurrency with coding, so eventually the banks will have to limit power so you can't create new currencies. They will do that with new legal tender laws making their fedcoins the only legal digital tender. They will back that up with cap and trade laws limiting your power use.

a reply to: darkbake

No it doesn't this shows how little you understand about currency. Tax liabilities give otherwise worthless paper value. The U.S. dollar has value because the government levies $3 trillion in tax liabilities annually and accepts only U.S. dollars in payment — which only it issues. This means US citizens and foreign businesses must earn these dollars to pay the taxes.

And here is the problem with bitcoin nothing forces you to use it. It's value is set by what someone will give you in real currency.

Bitcoin = digital BEANIE BABIES.

originally posted by: DanteGaland
Bitcoin = digital BEANIE BABIES.

What does the dollar equal to you then?

dollar = paper beanie babies.

Gold = gold beanie babies



beanie babies = beanie baby beanie babies

Its amazing how many people have no clue what gives things value. I'm laughing all the way to bank.

a reply to: booyakasha

Bitcoin advocates are the VEGANS of the financial world. . .

a reply to: booyakasha

Can I buy life-sustaning FOOD and MEDICAL supplies with Bitcoin?

Less than ONE PERCENT of all bitcoin transactions are for tangible "things".

The REST? .... All speculation.

Financial vegans, pushing their "edgy" new fake currency...

What has real value is stored energy and something that is rare. Bitcoins have stored energy, but they are not rare anyone can create a new crypto coin. What about quantum computers?

1) Quantum computers are coming, or are already operational by NSA and possibly other intelligence agencies.

2) Quantum computers threaten all Bitcoin-type cryptocoins.

3) QRL is the only cryptocoin purpose built to resist attacks from attackers with quantum computers.

4) People are holding tens of billions of dollars in Bitcoin and other cryptocoins. If a tiny fraction of those people become paranoid about the the quantum threat, it would be an understatement to say that QRL could become very interesting very fast.

www.cryptogon.com...

So once quantum computers are operational they'll crack bitcoin encryption and render them worthless, there goes all the energy used to mine them. What about quantum computers? How long before some other new technology comes along and cracks their encryption? It's an endless cycle.

We are humans, we relate with each other money is a medium of exchange and store of value. Therefore, until we come up with something digital that is uncrackable and represents human labor or activity I am not interested. I don't have much faith that will happen, technology is an endless pandora's box and chasing it's tail is entering the mouth of the dragon.



I'll stick with my few silver coins.

a reply to: SkeptiSchism

Quantum computers have not existed, at least since the movie Rainman and neither has quantum annealing.

Who ever controls the internet controls the crypto. You'll only have what they want you to have. Hard to beat gold or silver, it something that is physical and can be used to barter.a reply to: darkbake

a reply to: gimcrackery

The whole internet isn't physical, but the information stored there is worth lots of money. If someone were to limit access to information on the internet, they could charge exorbitant amounts of money for very little.

The information stored in books isn't physical, but the books still cost more money than the cost to print them, especially textbooks.

There is an advantage to books - they can't be censored after you buy them with an update or by the ISP, and if an EMP goes off, you still have the information stored in them.

a reply to: DanteGaland

yes you can buy food with bitcoin. Im not sure about medical supplies. Right now is just the beginning. Also when medical crypto currencies come out make sure you jump on those.

Blockchain technology will completely change the structure of society as we know it. We are cutting out the middle man of everything.

a reply to: Cauliflower

China has quantum encryption, how can you have quantum encryption without a quantum computer?

On September 29, that world came significantly closer to reality. A team of cryptographers and physicists from the Chinese Academy of Sciences held a half-hour video call with their counterparts in Vienna using quantum encryption, a technology that makes it impossible to hack or overhear communications./exnews]

www.newsweek.com...

edit on 9-1-2018 by SkeptiSchism because: wrong text too many windows open