Cryptocurrencies

[Teriholl]

I've never been fond of them because I don't understand how money not backed by gold can exist. Since when do we have currency that is not backed by gold?

[Mr_Draco]

Originally Posted by Teriholl

I've never been fond of them because I don't understand how money not backed by gold can exist. Since when do we have currency that is not backed by gold?

It's not money, it's an item.

Think of it more like buying a car or any collectible for that matter. You buy the item then hold on to it hoping it will go up in value. You can then sale it later to someone else for more or trade it for something of equal value.

[bossbunny]

Originally Posted by Teriholl

I've never been fond of them because I don't understand how money not backed by gold can exist. Since when do we have currency that is not backed by gold?

The dollar is no longer backed by gold, hasn't been for some time. The dollar only has value because we as a society give it value. Same with cryptocurrencies, they have value because their holders determine it to be of value.

[pyroguy]

Originally Posted by bossbunny

The dollar is no longer backed by gold, hasn't been for some time. The dollar only has value because we as a society give it value. Same with cryptocurrencies, they have value because their holders determine it to be of value.

The difference between the dollar and crypto is that while the dollar isn't fully backed by gold anymore, it still has gold backing and the government has assets such as land, buildings, mine able resources, etc to back it up. Crypto is theoretical money. It's physical value is even less than Monopoly money because at least Monopoly money is printed on paper that can be recycled.

[bossbunny]

Originally Posted by pyroguy

The difference between the dollar and crypto is that while the dollar isn't fully backed by gold anymore, it still has gold backing and the government has assets such as land, buildings, mine able resources, etc to back it up. Crypto is theoretical money. It's physical value is even less than Monopoly money because at least Monopoly money is printed on paper that can be recycled.

But isn't all money theoretical money? It has value because we say it does. In Africa they don't value their money, instead they value cell phone minutes so they trade with those instead of money. Value in subjective.

[pyroguy]

Originally Posted by bossbunny

But isn't all money theoretical money? It has value because we say it does. In Africa they don't value their money, instead they value cell phone minutes so they trade with those instead of money. Value in subjective.

You're missing the point. If I asked you for a dollar you could hand me a dollar bill, 4 quarters, 10 dimes, 20 nickels, 100 pennies, or any combination of the above. If I asked you for a dollar equivalent of Bitcoin what would you give me? There's zero that you can physically give me. Additionally, if people requested the US government to pay their debts and they ran out of money, highly unlikely I know but theoretically possible, they could trade gold, property, buildings, or other assets to satisfy their debt. Crypto, if you lose your password or your hard drive crashes you're out all of your money. There's nothing to back it up or counter it. There's nothing that can physically be there to pay off a debt. Crypto is virtual money with ZERO root other than "look at me, my computer says I have money".

[davidgreen22]

I've been in the crypt for about two years now.
It is very volatile and that is both a plus and a minus. You have to be very careful, especially if you use borrowed money. Also in crypto you need to stay on trend and follow them 24/7! Wallstreethack.com helps me with this.
If you're just investing get ready for the fact that you may need to sit in minus for a few

[bossbunny]

Originally Posted by pyroguy

You're missing the point. If I asked you for a dollar you could hand me a dollar bill, 4 quarters, 10 dimes, 20 nickels, 100 pennies, or any combination of the above. If I asked you for a dollar equivalent of Bitcoin what would you give me? There's zero that you can physically give me. Additionally, if people requested the US government to pay their debts and they ran out of money, highly unlikely I know but theoretically possible, they could trade gold, property, buildings, or other assets to satisfy their debt. Crypto, if you lose your password or your hard drive crashes you're out all of your money. There's nothing to back it up or counter it. There's nothing that can physically be there to pay off a debt. Crypto is virtual money with ZERO root other than "look at me, my computer says I have money".

If you asked for a dollar I could pull out my trust wallet and send you a dollar in Bitcoin, or USDT Stable coin which you could view on the block chain as YOURS.
Just because it's not tangible doesn't mean it's not real. You loose a $100 bill or a $100 scratch off you are out money same as losing your wallet passphrase.
There are three functions of money: Medium of Exchange, Unit of Account, or Store of Value. Cryptocurriences check all those boxes, in addition to having scarcity which FIAT does not.

[pyroguy]

Originally Posted by Chaltiaor

I also do not know much about cryptocurrency, I think it is worth to study it and then invest in it) I also think that it is necessary to invest in gold.

Why do you think gold is a good investment? If the world economy crashes, what would you rather have? A brick of gold or a case of water and a 5 gallon jug of gasoline? The rate of return for gold is awful and extremely volatile.

[Scotavo]

[QUOTE=bossbunny;11112031
Just because it's not tangible doesn't mean it's not real. [/QUOTE]

Crypto and Love; A difference without a distinction.

[Scotavo]

[QUOTE=Chaltiaor;11159701]So if the world economy collapses will there be any return on other investments? [QUOTE]
Collapse makes farms a great investment. And guns. At the moment there are 12 nations that are "back up copies" of civilization. All of them are ethno - states like Hungary, or Japan.

[Briland_1LE]

Originally Posted by KenKat

My son was mining Bitcoin and Litecoin with his gaming computer back when Bitcoin were $10 each. He also mined 2.7 million Dogecoin the day they came out.

He sold one of the Bitcoins for $20 and some more when Bitcoin hit $1000 but he still has a handful of coins worth a few thousand. I wish I had put $1000 into Bitcoin when it was $10 but knowing how it was back then - wild wild west doesn’t come close - it would have been like giving $1000 to a random guy on the street and telling him to pick you up some groceries and deliver them to your house next week.

Holy shit did he hold it!

[pyroguy]

The volatility shown yesterday is why high risk investing like crypto is a bad idea. Down $200 billion in one day. Good luck and hopefully those of you heavily invested didn't lose your shirt.

[Moto-Mojo]

I’ve considered this latest techno-gamble and it probably is ‘high risk investing’ but isn’t it all if you go all in on anything? With money you cannot afford to gamble with? I think RISK is relative. If you have money to burn on crypto, it’s low risk. If you don’t, it’s high risk.

Who would have thought GM could have tanked in 2008-9? There are some good arguments here about tangibles and the real worth and value of the dollar vs crypto.