European Central Bank president calls crypto worthless and "based on nothing"

cuerdc

Posts: 266   +91
Most currencies are linked to the us dollar which back in the day was backed by gold but no more so just like crypto is worth nothing just faith in either the government or the blockchain, only buying gold or land is an actual solid investment.
 

eforce

Posts: 948   +1,360
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.
 

NightAntilli

Posts: 900   +1,175
The most nasty part of this is proposing CBDC as a good equivalent for cryptocurrencies. Don't fall for it. CBDCs and cryptocurrencies have nothing in common except them being digital.

Make no mistake. A CBDC is a tyranny tool. It can be programmed to do whatever the wish of the government. You will get carbon credits, and if you exceed that, the system will automatically block your payments.
Maybe you got "fact checked" on social media, reducing your credit score, making your purchase of plane tickets impossible.
You might think this is a good idea on the surface, but what happens when someone gets in power that you dislike?

Don't be fooled. We are at a crossroads. Decentralized money vs tyrannical centralized controlled money. Choose wisely.
 

BigRedPDX

Posts: 269   +189
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.
My stock market speculations are doing fairly well.
 

Karlos95

Posts: 262   +183
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.
To think they aren't the same shows how much you have been paying attention to the world and how it works.
Nothing has a certainty that it'll make money. So Everything is a speculation. Therefore everything you put money into, is an investment.

Investment's are just more hedged to lose less. Doesn't make it any less of a speculation.
S&P 500 doing so well in the last 6 months....

Investment is literally defined as putting money into something for a profit. I have done that with crypto. So it is a great investment.

Speculation is putting money into something without having firm evidence of which way the price will go. So basically every stock in existence because one day the CEO could have a brain fart and make a terrible decision and lose huge percentages on the stock price. Or you know, just a massive world disaster(s) like has happened in the last 2 years to put everything into FUD mode.

Investing and speculating are the same thing. One just has a false take on their "investment" that it can never lose money.

 

shark975

Posts: 79   +95
I'm crypto agnostic but this headline is basically "Ford dealer: Chevy cars based on nothing". Anything central bankers and their govt puppetmasters cant control and manipulate is their mortal enemy.

Also what this lady think the paper money in her wallet is based on? It's worthless paper. I guess she is not sophisticated enough to realize it's an abstraction of value, just like other things could be without even needing paper.

Again, I'm crypto agnostic. Whether crypto succeeds or fails will depend on how friendly govts are and how much people embrace it, and I cant predict that. But the concept should be easy to understand.
 
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shark975

Posts: 79   +95
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)

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 :)
 

ID10T

Posts: 20   +13
You mean a guy in charge of the institutions that stand to lose everything if they lose control of Currency doesn't like currency he doesn't control... say it ain't so.
 

MaXtor

Posts: 406   +418
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 :)
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.

Silver is a prime example, again (partially) due to people investing in silver stock ($SLV) that is not actually backed by physical silver. It is the most conductive metal and cannot (currently) be substituted in many industries, especially future technology (electric vehicles, solar panels, satellites, robotics, etc). Once industry demand outpaces actual supply, the price will no longer be able to be supressed (as we saw recently with Palladium and Nickel).

Now, to go a bit off topic and to play devil's advocate, there is a lot research going into graphene. Graphene has the potential to replace silver in some (not all) applications in the future. It can also be made from carbon dioxide, so researchers are working on ways to efficiently 'mine' CO2 from the atmosphere. Theoretically (in the distant future), we could be competing with trees for CO2 to create graphene.
 

NightAntilli

Posts: 900   +1,175
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).
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.

 

MaXtor

Posts: 406   +418
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.

You're arguing semantics.

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.

CBDC vs Cryptocurrency: What Are the Core Differences?
 

MaXtor

Posts: 406   +418
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.
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.

https://www.coindesk.com/learn/what-is-a-cbdc/
 

RobJoy

Posts: 34   +26
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.
 

fps4ever

Posts: 901   +1,336
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.

LOL same old crypto defense being regurgitated over and over.
 

tancabean

Posts: 40   +45
Investing and speculating are the same thing. One just has a false take on their "investment" that it can never lose money.

The difference is that publicly traded companies have tangible value. They have factories, patents, productive employees, trusted brands, visionary leaders and oversight from boards that all contribute to the creation of a useful and profitable product. Returns have never been guaranteed from equity investments but there is a lot of actual data you can use to make an informed bet.

"Investing" in crypto on the other hand is just waiting around hoping more suckers jump on the bandwagon after you did to prop up the price.