Digital Currency

[Asclepias]

I dropped in $1k for bit coin back in 2017 just to see what would happen. I looked at it last month and it was worth almost $6k

In US Federal Reserve Note value-

No. In bitcoin value. I can spend it just like I can spend our own fiat money. I can buy something on the internet or from another person without ever converting to US dollars.

 

[there4eyeM]

On Monday, if take $30,000 dollars to a dealer and buy a car and I go one Friday with the same amount and buy the identical model, it doesn't matter how many more dollars have been printed in between; the value didn't change. That is because everyone in the chain accepts what I'm willing to pay. On the contrary, if in the intervening time the sales of this model fell sharply, the price the dealer accepted might actually have declined in spite of more dollars available. The Feds would not have had anything to do with it.
Inflation and deflation are not in lock-step with printing presses, though of course there are relationships.

 

[there4eyeM]

I dropped in $1k for bit coin back in 2017 just to see what would happen. I looked at it last month and it was worth almost $6k

In US Federal Reserve Note value-

No. In bitcoin value. I can spend it just like I can spend our own fiat money. I can buy something on the internet or from another person without ever converting to US dollars.

Of course, you duly send in any applicable taxes to the corresponding agencies.

 

[Asclepias]

I dropped in $1k for bit coin back in 2017 just to see what would happen. I looked at it last month and it was worth almost $6k

In US Federal Reserve Note value-

No. In bitcoin value. I can spend it just like I can spend our own fiat money. I can buy something on the internet or from another person without ever converting to US dollars.

Of course, you duly send in any applicable taxes to the corresponding agencies.

Of course not. Taxes do not apply.

 

[there4eyeM]

I dropped in $1k for bit coin back in 2017 just to see what would happen. I looked at it last month and it was worth almost $6k

In US Federal Reserve Note value-

No. In bitcoin value. I can spend it just like I can spend our own fiat money. I can buy something on the internet or from another person without ever converting to US dollars.

Of course, you duly send in any applicable taxes to the corresponding agencies.

Of course not. Taxes do not apply.

Uh, injection of humor not recognized?

 

[Asclepias]

I dropped in $1k for bit coin back in 2017 just to see what would happen. I looked at it last month and it was worth almost $6k

In US Federal Reserve Note value-

No. In bitcoin value. I can spend it just like I can spend our own fiat money. I can buy something on the internet or from another person without ever converting to US dollars.

Of course, you duly send in any applicable taxes to the corresponding agencies.

Of course not. Taxes do not apply.

Uh, injection of humor not recognized?

Are you asking if I recognize your humor or is it that you didnt recognize mine?

 

[there4eyeM]

I dropped in $1k for bit coin back in 2017 just to see what would happen. I looked at it last month and it was worth almost $6k

In US Federal Reserve Note value-

No. In bitcoin value. I can spend it just like I can spend our own fiat money. I can buy something on the internet or from another person without ever converting to US dollars.

Of course, you duly send in any applicable taxes to the corresponding agencies.

Of course not. Taxes do not apply.

Uh, injection of humor not recognized?

Are you asking if I recognize your humor or is it that you didnt recognize mine?

Oops, guess this one's on me!

 

[Asclepias]

I dropped in $1k for bit coin back in 2017 just to see what would happen. I looked at it last month and it was worth almost $6k

In US Federal Reserve Note value-

No. In bitcoin value. I can spend it just like I can spend our own fiat money. I can buy something on the internet or from another person without ever converting to US dollars.

Of course, you duly send in any applicable taxes to the corresponding agencies.

Of course not. Taxes do not apply.

Uh, injection of humor not recognized?

Are you asking if I recognize your humor or is it that you didnt recognize mine?

Oops, guess this one's on me!

No worries. I was just being a smartass.

 

[Dont Taz Me Bro]

It's based on the same thing the American dollar is.

Absolutely nothing at all

This is a popular misconception about money. It is never based on nothing, it is always only based upon the faith of those circulating it.

Faith is not a tangible asset.

 

[Concerned American]

I admit I know 0 about it, or Crypto Currency- I have no idea, at all, of where it gets its value- and what is it valued by is a question I have as well.

It's based on the same thing the American dollar is.

Absolutely nothing at all

The American dollar's value is based on GDP--after 2020, that isn't much--and how many $$$ are in circulation. Bitcoin is based on investor $$, similar to stocks. Look what is happening to GameStop. The only currency that I find that is solid is the one that we've reverted to innumerable times in the past--LEAD!

 

[there4eyeM]

It's based on the same thing the American dollar is.

Absolutely nothing at all

This is a popular misconception about money. It is never based on nothing, it is always only based upon the faith of those circulating it.

Faith is not a tangible asset.

It may not be, but it is the most important.

 

[The Irish Ram]

We are printing the dollar out of existence. Countries no longer want it as the standard for the price of oil.
We will go crypto, with digital, online banks. Your account will also be linked to the government so you can receive your currency for things like stimulus money. They will also attach climate change regulations to your account. Should you go over your 8 gal. fossil fuel allotment for the week, they will deduct the penalty directly from your account.
Until then, do some homework on cryptocurrency and blockchains.
In June of 2010 a bit coin was worth $0.0008. In 2020 it is worth 23,000 per coin.
It was a little bit before it's time, but crypto is very appealing to a socialist government. Wall Street banks limit the access that the government wants to acquire. Our government will build and back nicer, little "community banks" that they do have access to.

Bernie Sanders is our new budget czar. He wants free everything for the hordes that are preparing to accend on our country. Those 1%ers he wants to tax will be out of here as quickly as they were out of France when their government taxed them into oblivion. AOC wants her share for any opposition to her green demands.
Ruminate on that...

 

[Andylusion]

Ethereum

Value BY US Federal Reserve Notes-

I guess that's where my confusion comes in- it's still gov't controlled value- yes, the gov't controls the value- it diminshes the Notes value everytime it has more printed- so, ANY currency, real or imagined is still tied to it- and they know that- the next question has to be why, several why's actually- my simple answer is; Follow the Money, see the agenda- there are a lot of dots that would take a scholarly like approach to connect if laid out. But, eventually they lead to one reason- control. Which begs another why- is it just different wiring some have?
What's to be gained? More? For what? Power? How much is enough?

Well... So one problem with BitCoin, is that if you lose your key... you lose it all. There is no possible way, to figure out where the money is.

So let me explain that. Bit Coin uses an encrypted block chain. This is where you get the phrase Crypto-currency, because it is encrypted.

Now what this means, is that even if you unravel the block of information, you end up with a meaningless string of data, that says money went here. But you have no idea what "here" is. It is entirely encrypted.

The only way to access that account, is to not only know that number, but also have the decryption key, and then you can access the bitcoins in the account.

This would be kind of like.... the numbered accounts at Swiss banks after world WW 1, combined with a special key that unlocked the box.

With the difference being that even the number of the account itself, is encrypted. This is why crypto-currency is nearly unbreakable.

And here's the kicker.... even if you attempted to break one part of the block chain... and you were to fiddle with the numbers, and have money put into your account, the problem is every single computer with BitCoin is slowly checking the block chain for mistakes, errors, and manipulation. Millions of computers world wide, would essentially fact-check your block chain that says you have all this money, and find out... no you don't. Your block chain would be rejected, and your account reset to the real amount it has.

The upside of this, is that you have 100% privacy, and 100% safety from manipulation.

The down side is this. While it is impossible for someone to steal money from your account by changing the data, it still is possible to say..... if you wrote down your account number, and wrote down your encryption key, if they got that information, they could unload your BitCoins into their account... and once that is done.... just like how your account is private and safe, so is theirs.

Meaning, if you let someone get your bitcoins, you will never find them again, for the rest of your life, and no one will be able to investigate it. Don't even bother contacting the police, because they can't do anything. There is nothing to investigate really, unless you know who has your password, or have some other way of tracking the thieves. It's not like money, where you can see they wired X amount to Y account, and trace it.

By the way, it is equally dangerous to yourself. If you forget your crypto key, or misplace it, and you can't access your account.... again it is completely and entirely encrypted. There is no one to call. No helpline, or help desk to send an email to. No one to ask for a password reset. Nothing. You simply don't have your money anymore.

It is literally untraceable.

Well naturally governments hate that. If someone is smuggling guns for example, how do you trace the money if it is in bitcoin? You can't.

If someone is in the Mafia, and they are engaged in money laundering through bitcoin, how do you trace it? You can't. The end. Game over. They won.

So this is why government wants to have their own crypto-currency. But again, if the government has any ability to manipulate the currency, and if they make it, then I guarantee they do... then I can't see why anyone would use it.

 

[Gdjjr]

Inflation and deflation are not in lock-step with printing presses,

Oh but they are- your car anecdote is not comparing apples to apples, and you're talking about just 1 week-
Nothing in economics is instant. Nothing. Time and amount take, well, time, duh, and amount is, in part, determined by time- the printing of money is an equalizing, or controlling the value of the currency- and allegedly, the fed reserve tries to control the amount of currency available to control inflation and deflation, which happens over time, not instantly. Prices go up and down based on the market (and currency value) over time, except commodities, whose prices are based on speculation of future availability- cars are market based negotiations between mfg and seller and buyer- cars are not a commodity, per se', but an expendable want- in some cases a need- some commodities are needs, food stuff for instance- (needs are, air, water, food, clothing and shelter)- everything else is a want- a desire. But, I digress, the amount of currency available affects the value of the currency in hand. Period. The fed does it by recalling x amount of currency and charging x amount of interest on loans to banks and the fed gov't., when an extra amount is printed (more in circulation) it has to decrease the amount in hand. The amount of decrease is determined by the fed reserves parameters of study on inflation in different sectors of the economy- food etc and oil- ALL precious metals are priced (valued in) fed reserve notes- and digital or crypto currencies are valued by fed reserve note value, which in the open currency market trading is determined by desire vs availability- market prices change daily, often minute by minute, based on desire and availability and future availability (betting on desire) based on amount available speculation, for commodity trading speculation. Speculation drives stock market pricing, not car lot pricing- stock market pricing drives a lot of different prices, but not instantly, except the value (in fed reserve note value) of the stock being traded.

It isn't rocket science, but at the same time, it isn't a simple formula- it is a bit of an esoteric exercise, but, barely-

 

[Dekster]

Even believing that gold has value is still belief.

Since it was discovered- people like shiny stuff-

While true, it doesn't explain why so many people are so enthralled with sh...er, feces.

It is the new gold or stock market or beenie babies. People think they will be able to trade it for more than they paid for it

I dropped in $1k for bit coin back in 2017 just to see what would happen. I looked at it last month and it was worth almost $6k

Just think what would have happened if you had cashed it in last month and bought gamestock

 

[Calypso Jones]

WorldWide Digital Currency...china is getting ready to implement it there. It seems to require a chip in your arm.....mark of the beast like.

If 'they' get to implement it for the world then if you misbehave they can shut you down by turning off your chip...no travel, no restaurants, no groceries, no living in your rented home, no getting your money at all. Maybe they can add an app that will cut YOU off.

 

[Remodeling Maidiac]

I admit I know 0 about it, or Crypto Currency- I have no idea, at all, of where it gets its value- and what is it valued by is a question I have as well.

Dijjywan—Dijjydo or Dijjydon’t?
Questions for My Betters

China is now vigorously testing a digital yuan and threatens to have it ready for prime time for the 2022 Winter Olympics. This seems, to me anyway, important. It will be a real, workaday yuan, not a speculative cryptocurrency like Bitcoin. It will use a digital wallet via a cellphone app, and will not require an internet connection. Beyond this, I know about it only what I read, which may be wrong. To avoid endless qualification, I will write the following as if it were fact, but really I mean it more as an extended question. Any correction, amplification, or thought will be welcome.

0 interest in a currency that can be easily stolen or monitored by big brother.