So in other words, it's backed up by the figment of ones imagination... like crypto.
Not defending crypto here. But the "based on nothing" part is true for Euro as well. Euro is basically a bet against the continuity of EU.
Good luck trying to exchange that paper note for gold at the bank.Fiat is backed up by the gold standard. Also you have FDIC insured banks. How is that fly by night online wallet/crypto exchange backed up? No not remotely the same....
Good luck trying to exchange that paper note for gold at the bank.
Not yet.The digital yuan does not use a blockchain.
My stock market speculations are doing fairly well.Can we start replacing the word ‘investing’ with ‘speculating’ when talking about purely speculative transactions? You can invest in a company, a person, a country or whatever. But when we’re talking about buying up speculative assets like crypto, or even regular currencies for that matter, it’s not an investment. You’re not ‘investing’ in anything, you’re not creating any value. You are purely hoping that the asset goes up by n% due to happenstance rather than any meaningful change in whatever underlies the asset… it’s just gambling.
All investing is speculation.Can we start replacing the word ‘investing’ with ‘speculating’ when talking about purely speculative transactions? You can invest in a company, a person, a country or whatever. But when we’re talking about buying up speculative assets like crypto, or even regular currencies for that matter, it’s not an investment. You’re not ‘investing’ in anything, you’re not creating any value. You are purely hoping that the asset goes up by n% due to happenstance rather than any meaningful change in whatever underlies the asset… it’s just gambling.
The only comparison I would draw is that some crypto (like Bitcoin) is deflationary, just like gold and silver are limited resources.
Now, to say that Bitcoin or any decentralized crypto will become a standard currency (accepted by governments), that's a stretch. However, the technology will be the base for future government backed currencies. We've already seen China launch their centralized crypto and legislation is passing in the US while banks are working towards a US centralized crypto.
All the hate on crypto is unfounded, especially from a central bank who are certainly working towards their own centralized, fully traceable iterations. They're just talking trash about the competition. The blockchain is the future, whether that's decentralized crypto geared towards freedom, or centralized crypto geared towards control (or potentially, both).
The only comparison I would draw is that some crypto (like Bitcoin) is deflationary, just like gold and silver are limited resources.
Now, to say that Bitcoin or any decentralized crypto will become a standard currency (accepted by governments), that's a stretch. However, the technology will be the base for future government backed currencies. We've already seen China launch their centralized crypto and legislation is passing in the US while banks are working towards a US centralized crypto.
All the hate on crypto is unfounded, especially from a central bank who are certainly working towards their own centralized, fully traceable iterations. They're just talking trash about the competition. The blockchain is the future, whether that's decentralized crypto geared towards freedom, or centralized crypto geared towards control (or potentially, both)
oh dont worrry, we all experience the joy of fiat currency every day...like $6 gasNo need to....that is the joy of a fiat currency unlike magic coins. Regardless that is not how banks work.
oh dont worrry, we all experience the joy of fiat currency every day...like $6 gas
A lot of precious metals are trading under value (partially) due to trading securities for these metals backed by nothing. I haven't researched platinum, but I suspect it's in a similar situation to many precious metals.It's funny you say this cus my old crusty but also sometimes extremely intelligent friend mentioned this the other day. He said it's a good idea to buy bars of platinum right now. Physical bars.
He said he thinks "they"' will need to replace the dollar because theirs just no way they can pay all this debt, and he think they might replace it with a cryptocurrency, that way in his words they can "really manipulate the hell out of it", with an ominous tone. He can be a kook but on this one, I kind of agree. It's interesting to read your post in such light
CBDCs are NOT crypto, and are NOT an "alternative".The only comparison I would draw is that some crypto (like Bitcoin) is deflationary, just like gold and silver are limited resources.
Now, to say that Bitcoin or any decentralized crypto will become a standard currency (accepted by governments), that's a stretch. However, the technology will be the base for future government backed currencies. We've already seen China launch their centralized crypto and legislation is passing in the US while banks are working towards a US centralized crypto.
All the hate on crypto is unfounded, especially from a central bank who are certainly working towards their own centralized, fully traceable iterations. They're just talking trash about the competition. The blockchain is the future, whether that's decentralized crypto geared towards freedom, or centralized crypto geared towards control (or potentially, both).
You're arguing semantics.CBDCs are NOT crypto, and are NOT an "alternative".
[HEADING=1]Is CBDC a Cryptocurrency?[/HEADING]
Though the idea for central bank digital currencies stems from cryptocurrencies and blockchain technology, CBDCs are not cryptocurrencies. CBDCs are controlled by a central bank, whereas cryptocurrencies are almost always decentralized, meaning they cannot be regulated by a single authority.
What Is a Central Bank Digital Currency (CBDC)?
Central Bank Digital Currency (CBDC) is the digital form of a country's fiat currency, which is regulated by its central bank.www.investopedia.com
To further clarify, let’s summarize the core differences between cryptocurrencies and CBDCs.
...
- Blockchain type. While CBDCs use permissioned (private) blockchains, cryptocurrencies use permissionless (public) blockchains. The former is a centralized structure, the latter is not.
- Anonymity. Cryptocurrency users enjoy anonymity. CBDC users will have their identity tied up to an existing bank account and an equal amount of personal information.
- Decentralization. On CBDC networks, a central bank decides the rules. On crypto networks, the authority is delegated to the user base, which makes decisions by reaching a consensus.
- Use case. CBDCs can only be used for payments and other monetary transactions. Cryptocurrencies can be used for speculative purposes and for payments as well.
Central bank digital currencies are simply a bad copy of the crypto assets that we use today. They only impose restrictions and limitations, rarely bringing anything to the table that might enchant someone and push them away from decentralized currencies.
It's not semantics >_<. A CBDC doesn't need to- and likely won't use blockchain at all in its final implementation.
They're based on cryptocurrencies. Sure, they're butchered and meant for government control of the population, but that doesn't change that fact. At this point we're not going to agree, which is fine. I at least agree with you in that we should fight tooth and nail against CBDCs.It's not semantics >_<. A CBDC doesn't need to- and likely won't use blockchain at all in its final implementation.
Arguing that CBDCs are cryptocurrencies are the same thing is like saying oil and water are the same because they are both liquids.
Worth nothing and based on nothing?
You mean,... EXACTLY the same as paper money?
Paper money is based on exactly nothing, and they print any amount they deem fit to keep it afloat.
Crypto on the other hand, has real scarcity based on math, not virtual scarcity governments uphold.
Now, if money was BACKED by gold or silver 1:1, or hell backed by any other valuable tangible thing, I would give them bonus points. But to come out and slander crypto just because you don't understand it, is below LOW.
Investing and speculating are the same thing. One just has a false take on their "investment" that it can never lose money.