451–460 of 473 posts
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There are vast amounts of professional drug dealers making their living from transactions using this “hobby currency”.
They also use Venmo. You'd think that would be stupid because it's public, but so are blockchains.
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Okay... how does bitcoin differ from an unstable traditional currency? Both are subject to high and low swings to inflation and deflation. The one thing bitcoin has not been in its history is stable. This still ends up to being the equivalent to "there are 14 standards, let's make a standard to unify them... there are now 15 standards". Plus, all you described was a currency exchange with an extra step. You could rep…
In the discussed scenario, Bitcoin is more secure than a traditional currency. The local regime cannot take your Bitcoins away from you, which it could by hyperinflation, reform etc with the traditional currency. In other words, the trust in the owner of the currency is in fact higher. Local gangsters as well, cannot take your Bitcoins away from you as easily. You have a higher chance at keeping your stash.
I can see what you're doing, you won't get away with this.
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One day, when Tether finally breaks, books will be written, trying to explain how something so plainly fraudulent was able to persist for so long. The game theory behind its persistence is fascinating: only the last guy in stands to lose anything, so each transaction moved through Tether is basically pricing in a tiny chance of collapse.
I suspect that in retrospect it will seem obvious that a USD-equivalent that is effectively out of US jurisdiction (for the time being) will be seen as providing obvious value to money launderers and criminals, and that the counterparty risk they take is a small price to pay.
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Yes I agree with everything you said. I have a few questions for you if you don’t mind. A) In an environment where banks can lend every penny they have, is there a way to see how much of the money outstanding is loan money and vs how much is hard money? With a 10% reserve ratio, the theoretical max was $10 of loan money for every $1 of hard money. Therefore the ratio could be as high as 10:1. 2) What would happen if…
The premise of A is incorrect. (Banks cannot only lend out ONLY every penny they have...) Banks have (until March 2020) been able to lend out 10x the amount of pennies they have... aka assets listed on their books. Now they are able to lend out an infinite amount of pennies they have. Theoretically all money is "loan money". That's how money is primary created through fractional reserve banking, through loans. I own…
1)You start with boomer’s 1M of savings in BankA
2) The bank lends out 1M of that to Judy who deposits it in bank b.
3) bank b lends out that 1M to James who deposits it into his account in bank A.
4) bank a lends out that 1M to Jesse who buys a house from Karen. Karen deposits the money in her account at bank b.
5) bank B lends that 1M out to Jordan who buys cryptocurrencies. The Cryptocurrency seller Jake deposits the proceeds into bank A.
We now have: Boomer: 1M in bank A(the only “real money)
Judy: 1M bank B
James: 1M in bank A
Karen: 1M in bank B
Jake: 1M in bank A.
4 million dollars has been created from the initial 1M dollars. 5M in bank assets, 4M in bank liabilities. This process goes on and on.
What do you mean by all money is loan money?
Just a question, isn't all criticism against bitcoin applicable to gold? Money/Currency/Value in general can't be reduced or derived from first principles. You always have to take into account human nature, economic activity, and most unfortunately: psychology. So all criticism about how bitcoin inherently being pointless, sounds like off-tune. I want good reasons to/NOT-to buy in. First-world country citizens kind o…
Just a question, isn't all criticism against bitcoin applicable to gold? Money/Currency/Value in general can't be reduced or derived from first principles. You always have to take into account human nature, economic activity, and most unfortunately: psychology. So all criticism about how bitcoin inherently being pointless, sounds like off-tune. I want good reasons to/NOT-to buy in. First-world country citizens kind o…
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But why...? > When this [rally to near $20,000] happened in 2017, there was a real lack of products for the new converts to experience, whereas today there are endless uses, protocols, services across farming, lending, standard trading, etc Is this really true though? My first instinct isn’t at all to go to blockchain/cryptocurrency for farming.
Yield farming, not actual farming lol