3 fatal flaws with digital crypto currencies in their present form....

Until every merchant accepts cryptos you still need to convert to fiat to spend your cryptos. Very inefficient.

stfu

There are lots of new coins and exchanges cropping up.

But what about the merchant adoption rates?

In order to be a viable currency local merchants must accept it.

This is the new gold rush selling shovels and pick axes.

ICO's, mining equipment, exchanges, wallets, etc.

Why? Because you can't explain shit?

Banks already have access to all merchants on this planet.

Banks will be the ones who launch a successful crypto currency that will be instantly accepted by all merchants and it will be centrally managed, very efficient and cost effective.

This is the thread of the week.

Everyone needs to read this one.

Bump ad infinitum..

Centrally managed goes agaisnt the concept of the crypto community. Lots of people hate Ripple as its been made for banks.

I 5-starred this thread. Many excellent comments here too. The thing is, the NWO dictates all. Problem-reaction-solution. The end game is that everyone will be forced into digital. Period. So this crypto-currency stuff is all short-lived because they will crash it. The only people smart enough will
get assets. Tangible. And even then....trust in Christ.

I'm just saying how I think this will all pan out.

Adoption rate is key for a crypto to become a currency. Without mass adoption you will always need to convert to federal reserve fiat in order to use the crypto, but then it's no longer considered a currency and instead a trading instrument.

The vast majority of the population have no issues with the current banking system. Yes banks have all sorts of fees but if you are financially responsible then you won't incur these fees. The banking system is currently very efficient. Online banking, transfers, bill pays, ATM's for instant cash, debit cards, FAST purchases at ANY local or online merchant. The current system is super fast and efficient.

Above all there is ACCOUNTABILITY and there is a governing body to handle all problems and disputes. There is recourse for fraud and misuse. There is even insurance on deposits.

You get ZERO of this with any crypto "currency" on the market.

Banks will use crypto technology and incorporate it into their existing infrastructure.

Third party cryptos will have their place as tokens and credits to be used in commerce but they will most likely never be a universally accepted currency.

Plus if the grid goes down you can still use paper fiat in exchange for goods and services. With crypto you are dead in the water.

The bottom line is cryptos are a trading instrument, think tulips, and there is great fortune to be made trading them. But as a real life practical currency, it is not.

No because you are purposely being an asshole. If i posted wtf to every post i didnt understand on here id never have time to post anything else.

This is not complicated. Let me be crystal clear.

Forced to use a dollar by legal tender laws where vast majority have no say if they decide to roll out QE 10.0 vs. Freely converting fiat to bitcoin where inflation is predefined and controlled by the predefined rules of the protocol.

This is complicated?

Not complicated, but uncharted waters for sure.

This blank check for stupidity is probably a more accurate description than you know. worth the paper (or 1's & 0's) its written on.

Here is a story of The Cobbler and the Bitcoin
(P.S. - I am trade marking this, so you can't take this).


Back in the day, I could buy 1 bitcoin for $100 and I could (and still can) buy a new pair of shoes from the local Cobbler for $100.
Now, that very same bitcoin is worth $15,000 and I could buy 150 pairs of shoes from the Cobbler, right?

Does this describe deflation? Or tangible appreciation of an asset? Is it stable? Who is it fair for, me? The Cobbler? Who benefits from it? Is it fair for all?

If tomorrow, the price goes to the moon and lets say each coin was worth $100,000. We could buy 1000 pairs of shoes, right?
Is it the Bitcoin that is worth more? Or are the shoes worth-less?

What is actually effected is the USDollar (or whatever currency you are trading the Bitcoin back into). It would take more of these dollars to buy one coin. Is the Bitcoin a currency? or an Investment?? IF it is a currency, then we are witnessing deflation at a rapid speed!

What happens if/when the exchange goes the other way and the bitcoin goes down in price?

Lets say tomorrow 1 coin might be worth $20k (in this example) and if the value of Bitcoin goes down to $10k, not saying it will, I am just making a point here. It would take 2 coins to buy that same item at $20K. This price might fluctuate over night too. Would this be considered inflation? Did the price of that item go up? Or did the value of the bitcoin go down? If the price of the coin is effected, then it is an unstable currency.

Does this mean that the only fair way for this to work is for the price to continually go up?


Lets look at the other side of this transaction again, as a business owner would.


Here is how the story of the Cobbler and the Bitcoin goes,
Again this is my story and I am trade marking it.



The Cobbler and the Bitcoin.


Back in the day, a stranger introduced you and your neighbor friends to this new concept of a "digital currency" and sold you on this idea of Bitcoin. He said it was going to revolutionize currency and do away with these evil bankers. Being FED up with the fiat currency, you and your friends bought in. You each bought a couple of Bitcoins for $100 each.

Meanwhile crosstown, you friend the Cobbler, makes shoes and owns his own business you tell him about Bitcoin and how it will revolutionize the way business does business and he decides he would exchange shoes for Bitcoin.

You decided to use your Bitcoin to buy a new pair of shoes from the Cobbler.
The Cobbler exchanges you 1 Bitcoin (valued at $100) for 1 pair of shoes.

The very next day, you tell your neighbor friends about the shoes you bought from your Cobbler friend who now accepts Bitcoin. He likes your shoes and he goes and buys the same shoes from your Cobbler friend.

The Cobbler looks up the price of Bitcoin and he says that the price of the Bitcoin is now $200, so the Cobbler only get 1/2 of a bitcoin. Your neighbor reaches into his wallet and pulls out his Bitcoin, Thinks about chopping it in 1/2 for a moment, then decides to simply buy 2 pair of shoes for 1 Bitcoin (50% off) a 2 for 1 deal. SWEET! The Cobbler accepts 1 coin and hands your friend 2 pairs of shoes.

Your neighbor friend comes home and brags to you and tells you that you should have waited, "HaHa so sad for you", he says. "I got my shoes 1/2 off" He boasts.

The very next day, Your other neighbor friend hears about the Cobbler who accepts Bitcoin and he goes down to buy the same shoes. But today, the price of the Bitcoin now has now dropped down to $50. He has to exchange 2 coins for 1 pair of shoes. Your neighbor friend really needs the shoes and pay's twice as much for the same shoes.

This neighbor comes back home, bummed about his experience with Bitcoin and realizes that he took a chance, accepts the risk and decides not to do that again.

A few years later, your shoes are worn out and you want to go buy the same style of shoe from your friend, The Cobbler. But now the price of the Bitcoin is $15,000, so you only need to shave off 1/150th of your coin, because his shoes are still $100.
He now gets 1/150th of a Bitcoin, right?

Did the price of his shoes just go up? Did they go down in price? Remember, He only gets 1/150th of a Bitcoin.

Back to our story....

You call up you Cobbler friend and ask him if he still accepts Bitcoin, but you find out that he is out of business. The Cobbler tells you that he took the 4 Bitcoins he received and went down the very next day to exchange them, but the price was only $25 and he was forced to accept $100 for all 4 coins. He couldn't afford to buy more leather to make more shoes.

He tells you that he needed to pay for the materials in advance and the price of materials went up, they increased minimum wage rate and so labor went up. He had to pay his taxes and his healthcare provider jacked up his healthcare premiums and there was nothing left. He was forced to close his doors and went out of business.

How do you feel about your friend The Cobbler? Do you care? Is it ok for him to take that risk too?
Each day, the Cobbler is forced to exchange each Bitcoin at the going rate. he has no control over the price. The Cobbler doesn't have the time or the luxury to hold onto each Bitcoin like an investor does, he has a business to run, so he ultimately is forced to accept the current price.

If the business owner waits one day (or one second) too long to trade in the Bitcoin, it could break (yes, or make) his business, but he cannot afford the luxury to take such a chance. Yes you could argue that if only the Cobbler waited a few years, he would have made a fortune (Sucks to be the Cobbler).


Even with the wild speculation, there are potential capital gains/losses that goes along with each transaction. Who pays these? the Cobbler? You? Your Neighbors?
It is not only the business owner who taken for a ride, everybody is. How are you to know what the real price of Bitcoin is? Maybe it doesn't matter as long as you get hog nasty rich?

Oh, but you don't need to include the Cobbler in on the transaction. You simply go down to the local Bitcoin ATM and exchange for dollars, then come in and buy the shoes.

If the Price of Bitcoin is pegged to the price to mine it, nobody knows what it is really worth, or will be worth at any given second anymore.

I would argue that the price of Bitcoin has no stability to act as a currency right now.

You need confidence in the currency, in order for it to be a currency.

If it is an investment, then call it what it is, a "Crypto-Investment", not a "Crypto Currency".

Trust and confidence does not come from speculation.

Visa and MC are services, not a currency. They are a mechanism for taking your money, paying the merchant for the merchandise, they make money on both sides of the transaction.
totally different.

Last Edited by Chugiakian on 12/09/2017 12:15 PM

How so,
please explain

I like you!

:highfive:

Unfortunately, this is exactly why they are try to introduce Futures on Crypto's.
What will happen to the ability to "Rig the price", if they are successful?
Just like rigging gold and silver markets, right??

I hear what you are saying, but the challenge with this scenario, is, if Bitcoin is tied to the current predefined rules of the protocol for inflation, then we truly are experiencing a de-valuing of our dollar like never before. It takes how many dollars to buy a coin?
Dollars, Bitcoin and Merchandise, how much is each worth? yesterday, today and tomorrow?

I pointed this out in my story (above) of the Cobbler and the Bitcoin.

The thing everybody on this thread is missing is that the crypto currency Bitcoin became the way for dark money to be used and stored when the US government shut down the annomynity and secrecy of the Swiss banking system for performing those functions around 2010-2011.

Criminals didn't stop their criminal actions or
need to money between themselves just because Swiss banks could no longer be used for that purpose so they started using the only real option out there ... Bitcoin. That is what was used by Silk Road for clearing all their criminal activities.

Bitcoin has merely replaced Swiss Bankers for being how criminals move money around and pay each other.

In that respect it is real ... there was and is a real market demand and there is no need for the local merchant to accept it in payment for anything. Wnen was the last time you could buy a pair of shoes with gold or silver without converting those stores of value to a currency first?

Bitcoin is a way to transfer money anonymously. That is it's real value now that Swiss Bankers can't be used for that purpose.

Sure would explain the anonymous nature of how it got started now. Can you provide links to cooperate this?

Would this be considered "money laundering"?

I am truly interested in this type of feedback, which is why I started the thread.
Still trying to wrap my brain around all of the frenzy and buzz about crypto's.

Yes, printing fiat into oblivion does not instill confidence.
Crypto is not an investment. It is a currency which is un-counterfeitable.
One requirement for a currency is that it is supposed to be very hard to counterfeit, otherwise it loses its currency ability.
In this regard, crypto outshine your fiat (and gold).

Confidence in crypto comes from it being un-counterfeitable. There is no one authority that can control the currency. It runs as long as (we the) people are running the software on our computers.
A centralbank can print at will, which is the same as counterfeiting.

So appart from being a superior currency, it is a payment service, just like VISA.
The fact that you are being charged (and thus creating profits for a company) for a service that we don't need a third party draining is dumb.

#1 In GOD Nobody We Trust

If you think the Global elite bankers are going to sit on the sidelines and let this take over, you are crazy. They are playing us all as fools.


This is completely an opinion with no historical facts to back this up. The fact of the matter is that cryptocurrencies are unlike anything ever created and they are global. You'd need a GLOBAL consensus from all governments to stop Crypto Currencies. Japan has already legalized crypto currencies as legal tender. The Jig is up.
As long as a single country accepts cryptocurrency as legal tender it can not be stopped as other citizens can simply trade internationally or simply relocate to a location that is more progressive in financial evolution. Illuminati, global banking elite, etc... etc.. are merely speculative concoctions. You're calling the kettle black.

#2 No Guarantees

Exchanges have been hacked, but an exchange is not bitcoin.
Exchanges are created and run by people - centralized and fallible, however Bitcoin is not. There will be decentralized exchanges in the next year or two and thus that above problem will be solved. Reputable exchanges like Gemini and Coinbase have never been hacked. They also have Federally insured backing on accounts to the same limit as a checking or savings bank account. Bottom line is, keep your stuff secure and never put your trust in exchanges, pools, etc. Put your trust in cryptography and trustless MATH!

#3 There is huge inherent value in Bitcoin. It's the first sound money created. It is more scarce than gold, It is more liquid than gold - and contrary to the false accusation that it can not be used for consumer purchases - can indeed be used for consumer purchases. Take Japan for example - you can pay your taxes in Bitcoin or buy groceries, cars, electronic goods etc... at nearly any vendor. The inherent value comes from

a) the security of the system. Cryptography insures your funds will be their tomorrow provided you store on cold wallets - you can't lose them or have them stolen. You don't have this security with banks. I've had my accounts fraudulently charged 6 times in about 6 years with bank account/credit cards - never once with digital currencies.

b)_the true scarcity of the protocol. No other currency in the world can claim finite supply. They are all inflated as needed to continue operation of otherwise bankrupt economies, given the status quo operation of debt enslaved society schism. Fiat currencies are a sham in this regards.

c)_The vast size of the network. The computing power of the network secures the protocol in such a way that double spending is now virtually impossible. The funds required to do so would eliminate any potential goal setting to do so. This network is comprised of expensive machines that process the network transactions. The fiat money put into the machines is HUGE - in the billions of dollars. This is inherent wealth as the economics and structure of the ledger system is backed by physical goods.

d) the amount of money spent on electricity in order to process transactions. again this is fiat wealth backing the actual function of the network - paying for the electric costs to provide function to the network is enormous.


The notion that cryptocurrencies are worthless ledger systems is only given by those that have no understanding of the fundamental components of the network. They have a false belief that its merely some sort of SQL database and the price is purely speculative. While I will concur there is an element of speculation as they are traded as commodities on exchanges - with Bitcoin there is a mathematical basis for true scarcity and a simply pull of 1% of the gold market would put bitcoin value at $100,000 per coin. This seems inevitable as bitcoin provides a better store of value than metals as it is A) more secure, B) truly scarce, C) much more liquid as it can be traded to fiat or other cryptocurrencies at any given nanosecond without the need trust of an individual to do so.

LOL

Bitcoin is more transparent than the current banking system.

Every transaction is recorded on a ledger and once funds are traded to fiat - your funds are traceable on every trade and transaction you've ever entered into with that wallet.

OMG, how can you listen to that blowhard?

Let me ponder on this for a while.

meanwhile, the Mark of the Beast will be a system like we have never seen before either, perhaps until now? Is it being un-rational to think so?

Not to mention that projecting Bitcoin to 100K with any mathematical certainly would truly be speculative as well.

Cryptos will last as long as TPTB want them to last.

Central banks such as IMF or Federal Reserve can just poof create money out of nowhere and buy up and control all cryptos or.... government simply pass a law banning cryptos.

Bitcoin might be $1 or $1 million tomorrow.

Kind of hearkens back to the first paper money in the USA which was issued by banks, not by the government.

Crypto is tempting as hell.

I'd love to turn $50K into $60K overnight.

I'll stick with precious metals. Silver and gold are tangible and will be money throughout the ages as they always have been.

I think copper jacketed lead is the best way to invest.

I have silver. I have gold. Nothing ensures the value of both like copper jacketed lead. Your delivery system may vary. Mine tend to be sent at supersonic speeds should such be required for those wishing to take them. I also have some that travel subsonic through a can to protect my hearing....if need be.

Last Edited by Affable Serpent on 12/10/2017 12:44 PM