Imagine cryptocurrencies taking over the fiat money system.
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Bitcoin & cyptocurrencies
- Thread starter zhihau
- Start date
Imagine cryptocurrencies taking over the fiat money system.
Actually Big Banks and Central Banks are working pretty hard on Blockchain technology to handle fiat alongside crypto.
At the end day, it will be interesting to see what evolves.
At the end day, it will be interesting to see what evolves.
Forget about chasing Bitcoin now. It's too high. Ether is more manageable, and acceptable to more institutions.
IG for example is not taking long CFD positions any more on bitcoins or ether- due to wallet risk.
One should look past bitcoin at the basic technology carrier that is blockchain. That is the new disruptive technology. Bitcoin rides it like a radio carrier wave. But many things that have value will find the blockchain tech indispensable in the near coming future. No more central banks or entities to control or intermediate transactions. Imagine medical records, title deeds, etc. that can and should be made shareable riding on blockchain for security and transparency.
Many industries will be disrupted.
IG for example is not taking long CFD positions any more on bitcoins or ether- due to wallet risk.
One should look past bitcoin at the basic technology carrier that is blockchain. That is the new disruptive technology. Bitcoin rides it like a radio carrier wave. But many things that have value will find the blockchain tech indispensable in the near coming future. No more central banks or entities to control or intermediate transactions. Imagine medical records, title deeds, etc. that can and should be made shareable riding on blockchain for security and transparency.
Many industries will be disrupted.
Please give the exact text how G7 officially "recognize" bitcoin.
Bitcoin too is "recognized" by the Chinese government. If you reveal in weibo that you own 1,000,000 bitcoins, they won't go after you (as long as they are bought with clean money). Thye only closed down the bitcoin exchanges and block crypto websites to protect the Chinese citizens from ending in the global financial slaughter house.
Chan Rasjid.
I have read this many times. I think it is too early to say whether blockchain would be a sure technology of the future just like the internet.
Can someone be specific and give a single real example of one established government institutions actually now using blockchain in their systems in a non-trivial way.
Chan Rasjid.
No way bitcoin will ever be money or even near fiat money. Just like John Mcafee:
I bet my manhood that bitcoin will never ever be money.
Just use your common sense. How do you have poor peasant Indian farmers and labourers get to pay for everyday purchases with bitcoins. You expect them to buy at Bitfinet exchange with their Rupee?
A token as a medium of exchange can only happen with the backing of the government, not by some open source software developers and operators of bitcoin exchanges. These are the type of misinformation that have got silly people putting their money into bitcoin.
Chan Rasjid.
Getting closer...
Are digital currencies money?
The extent to which an asset serves the various roles of money varies from person to person and over time. In theory, digital currencies could serve as money for anybody with an internet-enabled computer or device. At present, however, digital currencies fulfil the roles of money only to some extent and only for a small number of people. They are likely at present to regularly serve all three purposes for perhaps only a few thousand people worldwide, and even then only in parallel with users’ traditional currencies. The remainder of this section first examines how widely digital currencies are used before assessing this usage against the three functions outlined above.
https://www.bankofengland.co.uk/-/m...hash=BE28BE59F18E79CCE705643CF14F36DF8897E56D
https://www.bankofengland.co.uk/research/digital-currencies
Are digital currencies money?
The extent to which an asset serves the various roles of money varies from person to person and over time. In theory, digital currencies could serve as money for anybody with an internet-enabled computer or device. At present, however, digital currencies fulfil the roles of money only to some extent and only for a small number of people. They are likely at present to regularly serve all three purposes for perhaps only a few thousand people worldwide, and even then only in parallel with users’ traditional currencies. The remainder of this section first examines how widely digital currencies are used before assessing this usage against the three functions outlined above.
https://www.bankofengland.co.uk/-/m...hash=BE28BE59F18E79CCE705643CF14F36DF8897E56D
https://www.bankofengland.co.uk/research/digital-currencies
I just cannot control my exasperation with testings ... and testings...getting nearer. They "talk" about how the "coming" Lightning Network will finally resolve the scalability problem of bitcoin. Yes...talk and testings...to keep the silly bitcoin mania high.
Chan Rasjid
Chan Rasjid
Our fiat money IS ALREADY DIGITAL CURRENCY.
The Sing dollar is digital currency too. In the streets in China, you can buy from roadside vendors with digital Yuan by scanning a QR code with the smartphone.All current bank accounts are digital currency money. It is now not the Yuan dynasty where you need paper notes. All banks use computers and our money is just a digital record in their database. So there is no need to talk and hype about digital currency - our banks are all using them.
Chan Rasjid
You should not be exasperated. This is mankind trying a way to progress. Some innovations make it, others do not.
Nearly every invention from lightbulbs to planes had people wondering. Who would have thought one could build something that can fly like a bird.
I would be the first to laugh if I seen the Wright brothers doing their runs with an wooden frame.
This thread is turning out to be useful as it shows many aspects of the human mind and how one form a point of view by interpreting what they have learnt or did not learn.
For example why did the EU and G7 go down this path? Why did Bank of Canada and the Bank of England do what they did? Why did MAS make the announcements on crypto currency this year?
On a more topical front, why did the bitcoin wallet proved incredibly resilient and withstand scrutiny in accounting terms? Why trade continues with Bitcoin and other similar cryptos.
As I said before on many occasions, Singaporeans have an inexplicable trait of waiting for the straits times to put a tick on something before they will accept it.
We should learn to test and try things and challenge the norms.
Even today when I mention migration to a 1st World country with a safety net, the amount of erroneous comments plus myths continues to surprise me. Seldom do I hear any enthusiasm. Recently one old timer here wrote about failures about migrants and having to return. And he was clearly is one of the better educated ones. It just stumps you when you see comments like this.
Nearly every invention from lightbulbs to planes had people wondering. Who would have thought one could build something that can fly like a bird.
I would be the first to laugh if I seen the Wright brothers doing their runs with an wooden frame.
This thread is turning out to be useful as it shows many aspects of the human mind and how one form a point of view by interpreting what they have learnt or did not learn.
For example why did the EU and G7 go down this path? Why did Bank of Canada and the Bank of England do what they did? Why did MAS make the announcements on crypto currency this year?
On a more topical front, why did the bitcoin wallet proved incredibly resilient and withstand scrutiny in accounting terms? Why trade continues with Bitcoin and other similar cryptos.
As I said before on many occasions, Singaporeans have an inexplicable trait of waiting for the straits times to put a tick on something before they will accept it.
We should learn to test and try things and challenge the norms.
Even today when I mention migration to a 1st World country with a safety net, the amount of erroneous comments plus myths continues to surprise me. Seldom do I hear any enthusiasm. Recently one old timer here wrote about failures about migrants and having to return. And he was clearly is one of the better educated ones. It just stumps you when you see comments like this.
This will be the golden age of hacking
The reason why I have not ventured into it is because in the past, many proponents I spoke to were people of low credibility like conspiracy theorists and some liberals.
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Its genesis in indeed based on liberal ideology - remove control monopoly of banks and state, post World Financial Crisis 2007/8.
Now that market value is far removed from its intrinsic value, only speculators with substantial appetite for losses as well as the ignorant will step in.
Interestingly because of the mechanics of mining and the transparency of the distributed ledge in the form of blockchain, one can reasonably determine the intrinsic value.
Now that market value is far removed from its intrinsic value, only speculators with substantial appetite for losses as well as the ignorant will step in.
Interestingly because of the mechanics of mining and the transparency of the distributed ledge in the form of blockchain, one can reasonably determine the intrinsic value.
i have 69 units of shitoshi, oops i mean satoshi.
My opinion is that the intrinsic value of bitcoin should be the total volume of future transactions, discounted by advances in computing power per unit of electrical energy consumption. I am basing this on the usual model for valuing equities, which is the sum total of future earnings after tax, discounted by the time value of money.
If more companies accept bitcoin as payment, its value should increase. Similarly if computers advance like they always have, then bitcoin should decline over time, ceteris paribus.
The trouble is in determining how receptive companies will be to accepting bitcoin as payment as time goes by. But the same problem lies in estimating the future earning potential of any company. I don't see either as a particularly easy task.
I am not sure if there are any current models of valuations that can be applied to any crypto that is not backed by an issuing institution or like gold, silver, equities or other investment grade instruments has an underlying value.
Crypto at the moment is driven by acceptance and demand. The moment it is no longer acceptable it’s tits up. An equity has underlying assets such as company premises, IP, goodwill etc.
Bitcoin’s acceptance is driven by transparency and accountability provided by Blockchain and the fact that it’s is extremely costly to mine. Note the use of the word “mine” as in extraction similar to precious minerals and the value determined by its limited availability and cost of extraction.
For argument sake, if someone introduces a new savvy crypto whose attributes supersedes Bitcoin, it is likely that Bitcoin will be worthless.
I am sure people who acquire Bitcoin will be converting to known asset quality items such as land, property, USD, gold, equity in batches as new highs are reached. As it cannot be accepted currently as store of value.
Though not a scam or pyramid scheme as suggested by some, I doubt it can be valued conventionally besides the rudimentary intrinsic value.
Those in the future market have no interest in its value or its ability to act as store of value. There intention is another to trade - margins, scalping, pennies. I will be surprised if long positions are held.
Nevertheless these are interesting times and I am sure Cryto does have a place. One must also concede the genius in Satoshi and in the way he completes the picture - the painful algorithm, the hash approach, the distributed ledger, the wallet, the exchange mechanism, the ability to account for every coin and the brilliant transparency etc.
Crypto at the moment is driven by acceptance and demand. The moment it is no longer acceptable it’s tits up. An equity has underlying assets such as company premises, IP, goodwill etc.
Bitcoin’s acceptance is driven by transparency and accountability provided by Blockchain and the fact that it’s is extremely costly to mine. Note the use of the word “mine” as in extraction similar to precious minerals and the value determined by its limited availability and cost of extraction.
For argument sake, if someone introduces a new savvy crypto whose attributes supersedes Bitcoin, it is likely that Bitcoin will be worthless.
I am sure people who acquire Bitcoin will be converting to known asset quality items such as land, property, USD, gold, equity in batches as new highs are reached. As it cannot be accepted currently as store of value.
Though not a scam or pyramid scheme as suggested by some, I doubt it can be valued conventionally besides the rudimentary intrinsic value.
Those in the future market have no interest in its value or its ability to act as store of value. There intention is another to trade - margins, scalping, pennies. I will be surprised if long positions are held.
Nevertheless these are interesting times and I am sure Cryto does have a place. One must also concede the genius in Satoshi and in the way he completes the picture - the painful algorithm, the hash approach, the distributed ledger, the wallet, the exchange mechanism, the ability to account for every coin and the brilliant transparency etc.
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