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Anyone else "dabbling" in cryptocurrency?

Discussion in 'Sidewinders Bar & Grille' started by s5tuart, Sep 4, 2017.

  1. s5tuart

    s5tuart ...... Strat-Talk Supporter

    Age:
    73
    Aug 8, 2011
    Bedford, UK
    You're already up!!! :D Hold your nerve and sell at £70 :D
    which will be later this week...
     

  2. CalicoSkies

    CalicoSkies Senior Stratmaster

    Jun 10, 2013
    Hillsboro, OR, USA
    I've read about them, but I'm not sure I see much point of cryptocurrency. We already have currency. But from what I gather, it sounds like one of the goals is to have an international currency that isn't bound by one country. It's an interesting idea, but I don't really see anything wrong with the currencies we already use. And I've heard that it takes a long time to mine significant amounts of bitcoin (at least it does now), so I haven't gotten into it.
     

  3. CalicoSkies

    CalicoSkies Senior Stratmaster

    Jun 10, 2013
    Hillsboro, OR, USA
    Does "real" money even really exist? Money is an abstract idea, represented at times by cash, but often represented by virtual things like credit cards and online transactions. And if the currency isn't backed by gold, money doesn't have any value beyond what people perceive its value to be. So if cryptocurrency becomes popular, it isn't any less real than "real" currency.
     
    s5tuart likes this.

  4. CalicoSkies

    CalicoSkies Senior Stratmaster

    Jun 10, 2013
    Hillsboro, OR, USA
    One thing I've read about bitcoin that makes me leery of it is that bitcoin transactions are designed to be tracked. Things like which bitcoins, who spent it, how much was spent, where it was spent (or transferred to someone else), etc. are tracked. It seems it's probably tracked more than credit/debit card transactions.
     

  5. s5tuart

    s5tuart ...... Strat-Talk Supporter

    Age:
    73
    Aug 8, 2011
    Bedford, UK
    Bitcoins transactions are indeed tracked but the sender and recipient are anonymous
     

  6. Sarnodude

    Sarnodude Senior Stratmaster

    Sep 26, 2015
    Mukilteo
    I'm heavily invested in guitars and amps right now.
     

  7. Neil.C

    Neil.C Senior Stratmaster

    Mar 3, 2012
    Surrey, England

    Money in any currency is backed by the government that issues it.

    Crypto "currency" is more an asset like shares etc. Only so much crypto will ever be available and the value is completely due to investors sentiment.

    Having no "real" value it can be worth thousands or nothing.
     

  8. s5tuart

    s5tuart ...... Strat-Talk Supporter

    Age:
    73
    Aug 8, 2011
    Bedford, UK
    When this thread started Bitcoin was at £3450 each.

    Today Bitcoin is at £11026 each.

    I won't say I told you so! :D
     

  9. joe_cpwe

    joe_cpwe Strat-O-Master

    960
    Jul 21, 2015
    USA
    Yeah,,,my co-worker and I talked quite a bit about Bitcoin back in 2013....ugh.

    Yes, the fiat currencies that the entire globe is running on now are backed by, and also manipulated by, governments and the banks that control them.

    The fact that Bitcoin has (or is supposed to have) a finite number of coins is similar to precious metals, which means security to many people. It is also disconnected from influence of government and banking system manipulation, which is also an attraction for people.

    So far, we still have to use our government backed currency to exchange in and out of the bitcoin system. While that dynamic exists, the banks are still in control.

    The whole thing is very interesting. We are in a boom. No-one knows how high it will go, and when there is a bust how high it will fall. Rest assured, there will be a bust. That doesn't mean it shouldn't be explored but it's best explored by those with money they could lose w/out it hurting financially. It's very high risk, with the potential of high return. A major downside is that the scammers are running into the space and some people will get hurt.
     

  10. CalicoSkies

    CalicoSkies Senior Stratmaster

    Jun 10, 2013
    Hillsboro, OR, USA
    I think the problem with that type of system (such as money backed by gold) is that when there's only so much of it, if some number of people are getting wealthier, that would mean that other people are getting poorer, since there's only so much money to go around. And as the population grows, that would become more and more of a problem.
     

  11. joe_cpwe

    joe_cpwe Strat-O-Master

    960
    Jul 21, 2015
    USA
    The fact there's only so much of it is precisely the benefit.

    The government is not asking the Federal reserve bank to print more 20 dollar bills so you can have extra's in you wallet. It does it it so 1) they can spend as much as they want 2) pay back loans with 'dollars' that are worth less now than when the loan was taken.
    Meanwhile, the bank (Federal Reserve bank) makes interest on all of it.

    We no longer have to adhere to the gold standard and thus there can be as many dollars in circulation as they want. By increasing the money supply dollars are worth less now..that's inflation. (it's also devaluation but we don't have all day to split hairs). The government is perennially going into debt, borrowing money from the Fed (a separate bank, controlled by bankers) with dollars that are easier to get today than they were in years past.
    In theory they pay back debt using devalued money but actually, we'd just like them to pay back the debt but now they don't even do that, the hole is getting deeper

    This thing could easily get into a spiralling rant between members on economic issue, then bleed into politicas, yada yada,,,so I'm going to bail. But, from what I know, all Fiat currencies through history have failed. The global economic situation is can explained with one word - debt.
    Study Fiat currency, study fractional reserve banking, study the laws enacted in and since 1913, study the federal reserve and how money works. It's all quite distressing.:eek:
    So, in the meantime, I need to get back to my guitar:thumb:
     

  12. 8T_BoCO

    8T_BoCO Aspiring Stratospheric Stratitician Strat-Talk Supporter

    Age:
    47
    663
    Mar 2, 2016
    Colorado
    The ones based on 'proof of work' are very energy intensive, so no. Maybe if I owned a solar or wind farm? ;)