Earlier quoted context omitted.
The difference is that they can never stop you custodying the bitcoin yourself. Bitcoin won't become "quaint" - it will always sit there as the hardest money mankind has ever seen (and likely ever will). If they try and create tokens that don't represent bitcoin i.e. creating them out of thin air, then they will go down in value relative to bitcoin, just as we are seeing with fiat currencies and people will move thei…
> they can never stop you custodying the bitcoin yourself. They can and will stop you from actually using real bitcoin stored onchain. It's a strong trend and one that is quite troubling.
Spot Bitcoin ETF receives official approval from the SEC
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Re: Spot Bitcoin ETF receives official approval from the SEC
#882I can't help thinking that Bitcoin ETFs could mark "Peak Bitcoin". When lots of people are trading it at their high street broker in their regular account, Bitcoin becomes just a number in a box - a crypto currency without crypto - with nothing underlying it.
There is no underlying value. No intrinsic value. The value is purely a function of speculative demand. And while previously people anticipated the demand would go up "organically" because of actual real-world usage, you know to pay for stuff and such, that hasn't really materialized in the way we hoped. How many actually use BTC for things like that? At its BEST it has usage to purchase other coins - but that's abou…
I'm surprised this comment still shows up. The intrinsic value is literally all of the energy spent ensuring the validity of the blockchain via expensive PoW. If you want to point at something with no intrinsic value, look to the fiats.
Re: Spot Bitcoin ETF receives official approval from the SEC
#883Earlier quoted context omitted.
Its purpose is to provide an escape hatch from fiat currency that steals people's wealth, available to everyone in the world, ultimately shutting down the global scam that is central banking. It is the hardest money that mankind has ever seen, digital, with an issuance schedule that is set in stone - no select few people have the ability to effortlessly print it, stealing the wealth of the rest and corrupting the wor…
I think its purpose was to provide fresh blood to the John Birch Society. It seems to be working remarkably well, in that respect.
Re: Spot Bitcoin ETF receives official approval from the SEC
#884Earlier quoted context omitted.
> They can happily regulate on and off ramps, and enforce traceability etc for anything that touches the 'real' economy though, should they wish. But what good is that? All you get is traceability for people with nothing to hide. You can't actually prevent on and off ramps because anybody could go to the black market digital currency dealer (whose operations are conveniently situated near the local drug dealer) and e…
That Bitcoin becomes un-resellable as it has gone through un-sanctioned addresses.
Re: Spot Bitcoin ETF receives official approval from the SEC
#885Earlier quoted context omitted.
If by creating a "disincentive to investment" you mean a disincentive to gamble their hard earned money on the stock market, then yes. The current situation where (at least before interest rate was somewhat high) the average man had to spend time and effort by going to the stock market with their money is not healthy. You shouldn't have to gamble your money just so it doesn't lose value by merely holding it. Investme…
Commodity currency does have a "disincentive to investment" which has a measurable negative effect on the economic climate. This was first identified and studied by Silvio Gesell in the early 20th century, then John Maynard Keynes a few decades later. Removing this disincentive is what ushered in the post-WW2 period of prosperity and growth that we're still living in today. The part your analysis is missing is that f…
It was a self-protecting system. The problem is it assumed the US would keep to its word. Instead we got everybody hooked on the USD, started printing a bunch of money anyhow, and then just defaulted on our obligations when other countries tried to convert it to gold, and withdrew from Bretton Woods. This led to the famous quote from Nixon's Treasury Secretary: "The dollar is our currency, but your problem."
So you're only looking from 1971 onward. This not only doesn't look especially pretty [1] in countless sociopolitical aspects, but the tremendous economic gains we have seen can also be largely attributed to a complete tech explosion that reshaped the entire world's economy, which we ended up being the natural epicenter of owing to a relatively large population, English being the defacto global language of science, and the fact that we were left entirely untouched by WW2.
The current completely free floating global fiat experiment may end up being the shortest lived economic experiment in our entire history should it turn out that we're just blowing up the mother of all bubbles. And it sure does feel that way!
Re: Spot Bitcoin ETF receives official approval from the SEC
#886Earlier quoted context omitted.
> They can happily regulate on and off ramps, and enforce traceability etc for anything that touches the 'real' economy though, should they wish. But what good is that? All you get is traceability for people with nothing to hide. You can't actually prevent on and off ramps because anybody could go to the black market digital currency dealer (whose operations are conveniently situated near the local drug dealer) and e…
That Bitcoin becomes un-resellable as it has gone through un-sanctioned addresses.
Re: Spot Bitcoin ETF receives official approval from the SEC
#887Earlier quoted context omitted.
> They can happily regulate on and off ramps, and enforce traceability etc for anything that touches the 'real' economy though, should they wish. But what good is that? All you get is traceability for people with nothing to hide. You can't actually prevent on and off ramps because anybody could go to the black market digital currency dealer (whose operations are conveniently situated near the local drug dealer) and e…
That Bitcoin becomes un-resellable as it has gone through un-sanctioned addresses.
Laundering crypto is extremely easy and cheap. You trade it on a crypto-only exchange (no KYC there) and trade it back. You can go further by doing both trades on different platform and using Monero. Now your dirty BTC belong to the exchange and will get spread out to everyone.
Re: Spot Bitcoin ETF receives official approval from the SEC
#888Earlier quoted context omitted.
If it did, your salary must have shrunk by 87.5% (or the company that you work for would have gone out of business).
Because in reality all salaries went up exactly the right amount to compensate for inflation? Hm, the system doesn't seem to work like that.
Re: Spot Bitcoin ETF receives official approval from the SEC
#889Earlier quoted context omitted.
When push came to shove, pretty much all money (and assets) dropped hard in value vs stuff that is critically needed. Hardness of money is really only situational. Really hard money does not exist that is why things like productive assets are where wealth goes - not into other non-productive monies. For example, equity is already used as money at times (M&A, salaries).
Bitcoin is a productive asset. I buy it, lend it to a business who can use it as collateral and I get paid back more bitcoin than I lent them, as compensation (i.e. interest)
Re: Spot Bitcoin ETF receives official approval from the SEC
#890Earlier quoted context omitted.
> world reserve asset. Except it's extremely unsuited for this purpose despite of what some delusional people might be thinking. No (at at least semi stable) country ever will use bitcoin as their primary reserve asset...
John Nash has a great essay which predicted Bitcoin. https://onlinelibrary.wiley.com/doi/abs/10.1002/j.2325-8012....