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Understanding Coinbase

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Re: Understanding Coinbase

#151

Post by jacques_chester »

smeej wrote: post #145
jacques_chester wrote: post #139

Earlier quoted context omitted.

I stand corrected. I can be absolutely fiat-free if I choose to beggar myself.

Given that the median family income in the U.S. is almost 15% less than $80k[0], the majority of U.S. households don't have to worry about this problem. You can try to make it out to sound really widespread if you want, but the facts don't support you. And the fact that people with lower incomes stand to benefit more from crypto than people of higher means who already have access to reliable banking systems is part o…

My top level point is still the same. The government won't settle debts in crypto. Taxes are the main one, but there are also fees, levies, duties etc etc which will need to be settled in fiat. That is not likely to change.

Re: Understanding Coinbase

#152

Post by morpheos137 »

epinephrinios wrote: post #146
morpheos137 wrote: post #141

A posh front end interface to the world's largest decentralised Ponzi scheme enabled by the idiotic authorities of the USA.

Ponzi/pyramid schemes require you to pay the nodes above you. At some point you cannot find new victims to add under you. On the contrary, networks like Bitcoin do not work like that. Buying Bitcoin doesn't affect the Bitcoin balances of any other node in the network.

What supports the Bitcoin price besides finding somebody else to buy your Bitcoin (greater fool)? How is much this different from a Ponzi just because it is not centrally organised?

Buying Bitcoin most certainly does effect the dollar exchange rate of Bitcoin balances and that is the only thing that really matters because there is not a Bitcoin economy independent of the fiat economy.

Re: Understanding Coinbase

#153

Post by alexeldeib »

smeej wrote: post #145
jacques_chester wrote: post #139

Earlier quoted context omitted.

I stand corrected. I can be absolutely fiat-free if I choose to beggar myself.

Given that the median family income in the U.S. is almost 15% less than $80k[0], the majority of U.S. households don't have to worry about this problem. You can try to make it out to sound really widespread if you want, but the facts don't support you. And the fact that people with lower incomes stand to benefit more from crypto than people of higher means who already have access to reliable banking systems is part o…

can you help me understand the income point you made? I'm not sure I totally follow.

If I make less than $40k a year, I pay 0% capital gains? But what about income tax? You have to have some form of income, which will be taxable. I don't see how to keep that so low your effective taxation will be 0% while having enough money to live on? Am I missing something? Forgive my unfamiliarity with the tax regimes here.

Re: Understanding Coinbase

#154

Post by tootahe45 »

dannyw wrote: post #150
tootahe45 wrote: post #95

Earlier quoted context omitted.

My take is that needing on/offramps proves crypto (and coinbase) is nothing but a huge casino at this point. I've been involved for 7 years and i still can't spend my crpto directly or without some serious gymnastics involved. So tired of people saying the tech is new, 'we are early adopters', etc. I'm personally steering clear of coinbase if they go public.

You can't spend crypto directly? I've been using a bitcoin debit card for years. I've also purchased thousands of dollars of stuff, from NameCheap renewals, Vultr hosting, to Amazon gift cards.

> I've been using a bitcoin debit card for years.

AKA being overcharged to spend fiat.

Re: Understanding Coinbase

#155

Post by adyus »

smeej wrote: post #119
dehrmann wrote: post #9

Earlier quoted context omitted.

The biggest threat is Bitcoin (and other popular cryptocurrencies) stop going up or experience a crash. Sure, there are true believers, but I suspect most people are just looking for an asset that's going up. It could be gold, Nikes, NFTs, Pokemon cards, or bitcoin. Or stocks, I suppose, but at least they have revenue.

The biggest risk to the world financial system is that people are going to realize the dollar isn't backed by anything, lose confidence in it, and it's going to crash. I don't know what you want to be holding if/when that happens, but I'd like to own some provably scarce resource that can be transmitted digitally.

The (U.S.) dollar is backed by the U.S. Army and always will be. Confidence decreases? The U.S. will likely start a war with the country whose currency tries to replace it (on "national security" reasons).

Fiat will always be backed by military force.

Re: Understanding Coinbase

#156

Post by smeej »

adyus wrote: post #155
smeej wrote: post #119

Earlier quoted context omitted.

The biggest risk to the world financial system is that people are going to realize the dollar isn't backed by anything, lose confidence in it, and it's going to crash. I don't know what you want to be holding if/when that happens, but I'd like to own some provably scarce resource that can be transmitted digitally.

The (U.S.) dollar is backed by the U.S. Army and always will be. Confidence decreases? The U.S. will likely start a war with the country whose currency tries to replace it (on "national security" reasons). Fiat will always be backed by military force.

Well there's your problem: Assuming it will be a country's currency.

Re: Understanding Coinbase

#157

Post by adyus »

smeej wrote: post #156
adyus wrote: post #155

Earlier quoted context omitted.

The (U.S.) dollar is backed by the U.S. Army and always will be. Confidence decreases? The U.S. will likely start a war with the country whose currency tries to replace it (on "national security" reasons). Fiat will always be backed by military force.

Well there's your problem: Assuming it will be a country's currency.

In that scenario, trust shifts to somewhere the U.S. cannot easily regulate. In case of crypto, that can just be banned and rendered useless, as long as the rest of the world is USD-bound.

If a crypocurrency becomes popular in another country using another currency to on- and off-board, see my comment.

It would take a miracle for cryptocurrencies to suddenly replace fiat without being bound to any fiat currency. Essentially, all the world would need to switch trust at once.

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