I hear it all the time. Bitcoin/crypto is alternative to fiat. And almost every token philosophy is based on this premise.
The question: can cryptocurrency beat legacy financial institutions to the point of replacing them?
... Thought as much... The much lauded JPMCoin was all noise and no substance. But can an accident happen to make legacy institutions catch up to the decentralized world?
I think crypto can only affect banks and they cannot make banks close. because the bank's capital is quite large and they can buy blockchain technology and continue to provide the best service to customers. In the future, we will see this perfect combination. Then how come digital cameras affected polaroid? How come DVD movies destroyed VHS? By the same logic polaroid could've bought all digital cameras and VHS tape makers could buy DVD co's. There are disruptive techs which simply revolutionize the space. If every bank tried to buy Bitcoin to protect themselves Bitcoin would shoot up to $ 1 million in months and banks wouldn't be able to buy BTC anymore. |
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Statistically in the long run most famous speculators end up broke.
Unless you do the Warren Buffett type of thing where you keep buying in the long run (what we call hodl) then if you're trying to guess market movements you'll either end up broke or even.
That's what statistics say. The most famous traders in history hit some homeruns which made them famous but in the long run they ended up broke.
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The moment sovereign treasuries begin to buy Bitcoin as reserve currency is the moment BTC explodes in value again.
BTC will gain widespread acceptance when governments recognize it as currency.
Central banks know this and that's why they don't want it to happen.
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10 years ago people look down on bitcoin when it was newly created and was less than a dollar.
Bitcoin was free. You could access any geocities-grade designed faucet page and earn 1000 BTC instantly. You could fire up bitcoin core and mine tons of BTC per day on a low grade CPU. |
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Other than early Bitcoin 2009/2010, how does free crypto make sense in 2019? Same idea? Distribute them hoping in 10 years they'll be valuable?
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Bitcoin is gaining momentum for the next bull run which this time will be in real greenbacks.
The next bull run is THE bull run, in U$ cash.
The Fed keeps printing dollars, China keeps printing Yuan, Europe keeps printing euros. They've printed U$ 300 trillion in debt that nobody's gona pay.
The next banker-created crash will make Bitcoin into digital gold.
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It's probably the banks. They're hedging their bets in Bitcoin because central banks continue printing money nonstop and markets aren't reacting anymore.
In other words: after the next crash Bitcoin may be closer to reserve currency status.
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How do sites such as cryptomixer.us, bitcoin fog, etc work? I just used cryptomixer and it split up my money into like 100 wallets. Is there any way I can do this without using a service? Quite interesting
It works by sending your coins to another person's destination and another person's coins go to yours. You can't do it without other people. However, you can use the Lightning Network instead of a service. It is an effective mixer because transactions are done off-chain and go through other people. I'd never thought about that. Lightning is the best mixer there is for that reason! Off-chain transactions show up nowhere. |
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The point is: don't do business on telegram.
Use telegram to contact folks, then carry your business out in some external platform. Use escrow or localbitcoins or something that maintains records.
Telegram isn't a trade app, it's a chat app.
A chat is supposed to lead you to a deal but not represent the deal itself. In real life do we just do deals based on chats or do we have contracts and actual papers? Why would online deals be any different?
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The main problem with fiat is the way the central banks decide to print money whenever the stock markets dip.
Cryptos can't be printed at will like dollars can.
Just a few weeks ago the Chinese stock market dipped hard and everyone was concerned. Suddenly the CBOC emitted U$ 200 billion in new debt, the money flooded the market and pumped the stock prices up. Everyone was euphoric.
The Fed basically does the same since 2008. Whenever the markets aren't doing well they print more money.
How is this system even legal?
There's no way you can harmonize that with the fiscal transparency of Bitcoin. You can't print Bitcoin at will whenever bankers and politicians tell you to.
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New initiatives such as solar and hydro mining ( https://crypto.bi/tape/blog/hydromining/ ) are going mainstream. Basically we're turning spare available energy into the basis of a financial system. If we calculate all the energy spent by banks in infrastructure, buildings, security, electricity, money transport and so on it's probably 10000x more than Bitcoin mining energy. Think about that. A financial system based on Bitcoin would probably save trillions of U$ in banking infrastructure in the long run. |
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How is this even measured? Is there a online resource with guidelines on AML/KYC? |
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I'm surprised by the strong volume in the recent bull run.
I think big banks are getting prepared for the new market crash hedging their bets in Bitcoin (the new gold?). Things are far too similar to 2008 again and it's been 11 years. Banks are likely preparing for Bitcoin to become reserve currency.
Remember there were crashes in 1998, 2008 and none yet since 2018.
The Fed keeps printing debt, Europe and Japan central banks print money every time the markets drop, China is printing hundreds of billions of Yuan every time the markets dip...this system can't sustain itself much longer. At the end of 2019 the world will be in U$ 300 trillion in debt. This money will never, ever, see the light of day and get paid. It's nonexistent money.
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I was a margin trader for more than a year now and bearish market isn't the issue for me. Unlike your tips, I do like the bottom because I have a chance to buy some coins at a cheaper price. Aside from that, entering a short entry in margin trading can also give me some profits. Rather than reading books, I do love to enter trading while the market is in the bear condition.
The trick is to know when the market has bottomed. Easy guessing it wrong and then having to wait out a 50% drop from your average price. Bitcoin sustained the U$ 3k region for months. So people are not willing to sell below 3k. That's a good support zone. But will this support give investors confidence to drive it 100% up to U$ 6k in short term? Can it get back to the ATH anytime soon? So that's the problem: you never know when it's cheap because Bitcoin still doesn't have widespread adoption. If we knew a coffee cup was worth 100 satoshi and that you could pay rent with X satoshi, then Bitcoin value would be easier to estimate. Right now everyone's just guessing what the value of BTC can be so we don't really know if U$ 5k is low or not, bottom or not. |
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i think it makes sense a lot but my question remains what would happen when the 21 bitcoin possibilities become exhausted?. what if by then big businesses adopt it for their daily operation? can the price of 1 sats then reach 1 dollar! or would there be an adjustment on the blockchain code to produce more?. I need your view as an economist
Changing the source-code to produce more than the 21 mln limit would destroy 99% of Bitcoin value instantly. The only reason Bitcoin is worth thousands of U$ is because it's rare. Also a satoshi cannot ever be worth U$ 1 because : a) there isn't that much money in existence and; b) Bitcoin transaction fees would be impossible to pay if the smallest unit of the cryptocurrency gains to much value. You can't break a 1 satoshi transaction down into microsatoshis. That would probably require changes to the core source code, perhaps adding 8 more zeroes. |
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Regulation in the cryptocurrency space can help to reduce the number of scammers on the increase, several project has failed, but with strategic research we can be sure to source for profitable project by good developers, reason why the team and there partners are important before you consider to invest.
The problem that is happening now is the decline in trust in the crypto project, including ICOs that have failed or many frauds which have resulted in pessimistic people. Even though a coin can appear on the crypto market through ICO that is held correctly, honestly, and on time so that the developers and workers involved benefit from each other. Yes, too many ICOs are failing and deceiving at the moment, making a lot of losses for Investors and Bounty hunters, so I hope there will be strict regulations for the ICO this year. Do ICO's fail more than regular startups do? I think ICO failures is unfairly being attributed to crypto. I'd be willing to bet that regularly funded projects and ICO's fail at the same rate. ICO's just get more attention because it's the new new crypto thing. |
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What we call today 'FIAT' is just a piece of paper without any ballast, money needs to be a scarce resource, like precious metals, for example.
However, precious metals like gold can not be used on a day to day basis, so they are restricted to the value reserve. Cryptocurrencies on the other hand are easily divisible, allowing their use as a means of payment in our daily lives.
Modern economic theory says that the Fed can print as much money as they want as long as it does not generate inflation. They keep tabs on inflation. If inflation is low then they can print more money. That's where the problems begin: only big banks have access to this cheap Fed money. Basically they print money for themselves and everyone around the globe works all their lives to keep inflation low. We work for the Fed and their partner banks. Since they keep printing trillions in debt, we have to work more and more, exponentially, to keep the pyramid system going. I don't know how such a system is accepted by everyone. Basically you have a couple dozen banks around the world accumulating most the existing wealth. 2008 exposed all this when banks were bailed out. Lemonade stands don't get bailed out, mom and pop shops don't get bailed out. Banks do. I see Bitcoin as the new ballast. Impossible to print more Bitcoins for your banking buddies, impossible to do anything shady because it's all public. |
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This is really a sad news. Minimized power supply will cause a lot of difficulties in everything. The economy will go down because many technologies are not working well and people's lives are lower.
venezuela needs a better leader and helps their country on the right track. Inflation is expected to decline significantly in the next few years for Venezuela.
Inflation is not declining, its increasing. Socialist mindset in the economy destroyed the nation's means of income. Venezuela's economy has been declining for the last decade, especially during the last 6 years when Maduro seized power: The Venezuelan economy shrank 16.6 percent in 2017 compared to 2016, the sharpest contraction on record, according to preliminary data being prepared by Venezuela's central bank, two sources familiar with the matter said on November 22. In particular, preliminary data shows that the non-oil sector shrank 15.2 percent and oil sector declined 11.3 percent. For the first time since 2016, the bank is preparing to hand over comprehensive economic data for the International Monetary Fund to avoid sanctions including a possible expulsion from the lender, but it has not officially approved the figures. Following a conference call between the bank and IMF last week, bank technicians began working to deliver new growth and inflation data to meet a strict November 30 deadline issued by IMF officials. GDP Annual Growth Rate in Venezuela averaged 1.62 percent from 1998 until 2017, reaching an all time high of 36.10 percent in the first quarter of 2004 and a record low of -26.70 percent in the first quarter of 2003.  I think this whole process has to be analyzed in context with US sanctions. The 2017 economic collapse came just after 1 year of US sanctions. I don't know how much of the collapse is due to internal policies and how much of it is due to the fact that anyone who does business with the USA cannot legally do business with Venezuela. You can probably destroy any emerging market economy with this kind of sanction regardless of ideology. |
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Bitcoin jumped from its before-last peak of about $1300 to $20,000 (almost 19-20x)
The way the graph is looking today, I think the new peak will be at least be 5-6x, so the BTC price should shoot over $100k and land us safely on mars
That would place Bitcoin market cap at U$ 1.7 trillion, almost twice Apple's market cap. Would be awesome if it happened but I suspect there'd be a lot of selling in the path up to 100k. It'll likely not be one quick process. |
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I saw in my social media feeds that there's a lot of people now posting about free cryptocurrency that needed of kyc before you get a penny money. This people not think if it's will good to them to give their identity in any site for just penny money. Yeah it's free but your identity will be possible to use in any harmful doings.
Whats your thoughts about this?
It's a risk to entrust them our personal identity and information. We should choose where to join. I wonder why they have to ask for a KYC if they're just offering free money. We should not trust them easily if it involves our personal information. I agree. Too many suspicious crypto projects are using the KYC excuse to mine tons of personal data. With an authentic ID card copy or passport you can open accounts in online banks and do all sorts of damage. Collecting these is great business. Don't ever send your documents to untrusted projects. |
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