Crypto currency 101

[Coinseeker22]

While we are all busy speculating the value of altcoin or which will replace Bitcoin. Lets back up a little.

Now as i read trough threads and continue to gain knowledge about the potential of crypto currency I started wondering, “how and what are the possible effects of crypto to the economy?”

Back in the days the amount of gold and silver determine the value of the fiat now fiat value is basically determined by how strong a government is. People have to work and dedicate a portion of their time every day to earn for this piece of paper in order for us to live and pay fees. Lets set the US dollars as an example, so ultimately the US dollar is back by taxes and the government in order to support and take care of its people.
Now crypto currency doesn’t have that, it doesnt have anybody enforcing rules and backing it. Of coarse there are pros and cons.

Now going back to Crypto the fact that it doesn’t have any government to control it, it has the block chain that sort of decentralized the authorities behind it making it more valueable as we say.
My thoughts, since there is no one regulating rules anyone can manipulate the value of any crypto currency. Isn’t that more risky?

To talk about the Pros and Cons and this is just one of it. International transfer transaction requires bank and SWIFT ( Society for Worldwide Interbank Financial Telecommunication ) A platform that provides a secure network globally to transmit information. It’s safe but some times it takes days. With crypto currency any transactions can happen in seconds.

They say that by Cutting out the middleman crypto currency cause disruption to the global payment system. One of the reasons for the centralized payment processing protocol is to prevent funding for money laundering, terrorist activities, and illicit trade in drugs and ammunition. With crypto currency, it becomes harder to trace transactions and ascertain identities of the participants.

What i just wrote is certainly not limited to it, i welcome your ideas and i hope that this could enlighten everyone.

[bitChipper]

Now crypto currency doesn’t have that, it doesnt have anybody enforcing rules and backing it.

The bitcoin network has roughly 50,000 TH/s of computing power making sure that all the rules of protocol are enforced, the miners are enforcing the rules and backing the digital currency. The code itself dictates the supply, the code is open source and controlled by competent developers. People don't have to upgrade to new code if they don't want to making the system more decentralized then the FED or any central bank for that matter.

since there is no one regulating rules anyone can manipulate the value of any crypto currency. Isn’t that more risky?

I will say that the supply of bitcoin and most crypto currencies is lop-sided to a small few, but that doesnt really mean the price is manipulated, shit we could debate if gold/silver price is manipulated. But not just anyone can manipulate the price, it would have to be whales or people with endless pockets. Anyone who has large sums of bitcoin is interested in the long term appreciation anyways. Short term market moves are irrelevant in crypto.

One of the reasons for the centralized payment processing protocol is to prevent funding for money laundering, terrorist activities, and illicit trade in drugs and ammunition. With crypto currency, it becomes harder to trace transactions and ascertain identities of the participants.

This has been refuted so many times, only a small portion of crypto is used for illicit activity, and only a small portion of cryptos are completely private, most have public chains where law enforcement can analyze and identify crypto users.

[yokosan]

if this system was used only for bad reasons. it would have been completely destroyed by now. however, a new technology is being recognized. in this time, it will be seen clearly. technological investments for the future will continue. 

[sunsilk]

My thoughts, since there is no one regulating rules anyone can manipulate the value of any crypto currency. Isn’t that more risky?

Yes.

This happens most of the time when the price moves from time to time, we are pointing the whales for the cause of the price decrease but when the price goes up we are only saying that its due to the demand. And there are scams as well that they are using crypto's to take advantage of their investors.

They are setting the price and making them believe that crypto is legit, this is one of the bad side that others sees because they only think that scams do only exist in crypto's but in other currencies, they do exist as well and came there.

[tenebriscaelum]

They say that by Cutting out the middleman crypto currency cause disruption to the global payment system. One of the reasons for the centralized payment processing protocol is to prevent funding for money laundering, terrorist activities, and illicit trade in drugs and ammunition. With crypto currency, it becomes harder to trace transactions and ascertain identities of the participants.

While it is true that it will be harder to trace transactions and ascertain identities it does provide a sec of security to the user as they know themselves that their transaction details / data is very much in essence almost hidden which is one of the advantages of crytocurrency, and while we can argue that it can also be a disadvantage due to the fact that it can also be used to make suspicious transactions such as black market trading we can say that it is just a minimal blunder because we know for the fact that the users who does this is only very few. For now ehat we need to focus on is how can the blockchain technology can benefit us and the market that each project represent and with this going right now it will not be long before it s mass adoption.

[eagle10]

They say that by Cutting out the middleman crypto currency cause disruption to the global payment system. One of the reasons for the centralized payment processing protocol is to prevent funding for money laundering, terrorist activities, and illicit trade in drugs and ammunition. With crypto currency, it becomes harder to trace transactions and ascertain identities of the participants.

Banks and other institutions are just afraid that cryptocurrency might takeover banks and that they cannot control anymore everyday transactions because of the decentralized system of it. In real sense it is also harder to ignore that it can be used in any illegal means because of decentralization of its financial transactions worldwide. I believe they can regulate it and submit all cryptocurrency to regulations. I don't know but regulations, I think is not good to all.

[Crypto Girl]

Now going back to Crypto the fact that it doesn’t have any government to control it, it has the block chain that sort of decentralized the authorities behind it making it more valueable as we say.
My thoughts, since there is no one regulating rules anyone can manipulate the value of any crypto currency. Isn’t that more risky?

It's riskier than ever and that's how the government look up to it and likely warn their people to not engage in this kind of investment. Nonetheless, we're like blinded by the truth and we just believe what we want to believe, and hoping we can hit the right spot despite of all uncertainties.

Somehow, our mind was already conditioned by the news and social media, that bitcoin having essentially intangible become valuable. Plus the fact that people saw the massive increase last year made them stick their eyes here and waiting for their investment to grow. Nothing will be risky to people that's been blown away by bitcoin.

[Coinseeker22]

since there is no one regulating rules anyone can manipulate the value of any crypto currency. Isn’t that more risky?

I will say that the supply of bitcoin and most crypto currencies is lop-sided to a small few, but that doesnt really mean the price is manipulated, shit we could debate if gold/silver price is manipulated. But not just anyone can manipulate the price, it would have to be whales or people with endless pockets. Anyone who has large sums of bitcoin is interested in the long term appreciation anyways. Short term market moves are irrelevant in crypto


[/quote]
Great point there. Now speaking of whales, while there is no guarantee that they exist a lot believed that this can be a group of companies that manipulates the value in the market l, have you comentona realization that it can be a government behind it? It so or if its true just imagine the impact of it to the economy. And so there are talks of Bitcoin to replace the dollars. Dont get me wrong I believe in crypto but with scams and all, everything can turn in to a bubble anytime.

[Coinseeker22]

if this system was used only for bad reasons. it would have been completely destroyed by now. however, a new technology is being recognized. in this time, it will be seen clearly. technological investments for the future will continue. 

I believed that crypto can grow way than we can imagine, and can extend more as our technology evolves, perhaps it is shallow to think that the system is not being use for any illegal transactions, i can and it might be used to scams and other illegal matters, my point there is whilos regulating that if the miners are tye only ones enforcing code?

[Coinseeker22]

My thoughts, since there is no one regulating rules anyone can manipulate the value of any crypto currency. Isn’t that more risky?

Yes.

This happens most of the time when the price moves from time to time, we are pointing the whales for the cause of the price decrease but when the price goes up we are only saying that its due to the demand. And there are scams as well that they are using crypto's to take advantage of their investors.

They are setting the price and making them believe that crypto is legit, this is one of the bad side that others sees because they only think that scams do only exist in crypto's but in other currencies, they do exist as well and came there.

On point! Now as these happens like a cycle, imagine how things can turn out. More so, if crypto really gets adopted to replace the fiat system. What would a country can become if such instances happen? How can this effect the development of a country and the market ot self?

[Coinseeker22]

They say that by Cutting out the middleman crypto currency cause disruption to the global payment system. One of the reasons for the centralized payment processing protocol is to prevent funding for money laundering, terrorist activities, and illicit trade in drugs and ammunition. With crypto currency, it becomes harder to trace transactions and ascertain identities of the participants.

While it is true that it will be harder to trace transactions and ascertain identities it does provide a sec of security to the user as they know themselves that their transaction details / data is very much in essence almost hidden which is one of the advantages of crytocurrency, and while we can argue that it can also be a disadvantage due to the fact that it can also be used to make suspicious transactions such as black market trading we can say that it is just a minimal blunder because we know for the fact that the users who does this is only very few. For now ehat we need to focus on is how can the blockchain technology can benefit us and the market that each project represent and with this going right now it will not be long before it s mass adoption.

Great inputs, now lets go with the mass adoption. If all or most of the transaction in our daily lives evolves in crypto, who would collect taxes and fees to improve the government? The miners? With such improvements a country may fall As the stock market and the foreign exchange fall? If all works only for their own benefit what are the possibilities?

[Coinseeker22]

They say that by Cutting out the middleman crypto currency cause disruption to the global payment system. One of the reasons for the centralized payment processing protocol is to prevent funding for money laundering, terrorist activities, and illicit trade in drugs and ammunition. With crypto currency, it becomes harder to trace transactions and ascertain identities of the participants.

Banks and other institutions are just afraid that cryptocurrency might takeover banks and that they cannot control anymore everyday transactions because of the decentralized system of it. In real sense it is also harder to ignore that it can be used in any illegal means because of decentralization of its financial transactions worldwide. I believe they can regulate it and submit all cryptocurrency to regulations. I don't know but regulations, I think is not good to all.

One key point of the block chain network is to eliminate regulations, or any entity to regulate or control the transactions being donenon its network, not the question is who will regulate the crypto market id so does it defies the sense of having a decentralized system?

[sunsilk]

My thoughts, since there is no one regulating rules anyone can manipulate the value of any crypto currency. Isn’t that more risky?

Yes.

This happens most of the time when the price moves from time to time, we are pointing the whales for the cause of the price decrease but when the price goes up we are only saying that its due to the demand. And there are scams as well that they are using crypto's to take advantage of their investors.

They are setting the price and making them believe that crypto is legit, this is one of the bad side that others sees because they only think that scams do only exist in crypto's but in other currencies, they do exist as well and came there.

On point! Now as these happens like a cycle, imagine how things can turn out. More so, if crypto really gets adopted to replace the fiat system. What would a country can become if such instances happen? How can this effect the development of a country and the market ot self?

Cycle as it is.

In the chance if crypto gets adopted to replace fiat,  I think that's odd. It should be crypto adopted in a way to make transactions easier, don't go far yet with that assumption that it will replace fiat. That's hard to say for now with a lot of things that can be done by the government.

If crypto is on mass now, market cap would surely increase and demand as well.


Development for that country would be amazing, do you have an idea on what's happening with Malta and Australia? that's the development that can happen to others if they adopt crypto.

[beerlover]

if this system was used only for bad reasons. it would have been completely destroyed by now. however, a new technology is being recognized. in this time, it will be seen clearly. technological investments for the future will continue. 

The thing is that there will always be a negative side to every story and in as much as the OP tend to pain the negative sides as well as some of the few positive sides, does not mean fiat does not have its disadvantages as well and I am sure we all know that if we are to really talk about monopoly and crazy policies, fiat takes the first place, so in a nutshell, who has regulation helped ?

We may be at an early stage now, but I believe with real life usage, things may end up different. There could be some form of regulation but at the end it will be limited in a way for the government, so it is still always going to be a win-win for us the users of the decentralized space.

[justdimin]

They say that by Cutting out the middleman crypto currency cause disruption to the global payment system. One of the reasons for the centralized payment processing protocol is to prevent funding for money laundering, terrorist activities, and illicit trade in drugs and ammunition. With crypto currency, it becomes harder to trace transactions and ascertain identities of the participants.

Banks and other institutions are just afraid that cryptocurrency might takeover banks and that they cannot control anymore everyday transactions because of the decentralized system of it. In real sense it is also harder to ignore that it can be used in any illegal means because of decentralization of its financial transactions worldwide. I believe they can regulate it and submit all cryptocurrency to regulations. I don't know but regulations, I think is not good to all.

I really do not know why they are afraid of competition ? truth be told, no matter how they want to show their fear or dislike for it, nothing is actually going to stop it from keeping on to be in existence.

Now, I am not saying that would render fiat useless, as this would probably just be an alternative, but as far as I am concerned, decentralization may have some of its disadvantages at the moment, but that does not mean it is by far better than centralization that have never helped in anyway, except for the banks and the government making more money for their own pocket with no ease of usage.

[Coinrush20]

Quick question guys with out fiat value, would crypto or altcoins in that matters have any value? I mean if were about to rely its value to crypto alone and not reference it to any monetary value would it have any cost now? Been reading a lot of rumors about crypto replacing fiat so yah. Any ideas?

[geminiboy]

Quick question guys with out fiat value, would crypto or altcoins in that matters have any value? I mean if were about to rely its value to crypto alone and not reference it to any monetary value would it have any cost now? Been reading a lot of rumors about crypto replacing fiat so yah. Any ideas?

crypto will not replace fiat as a currency in every country, crypto is an item / tool that is used for a stock trading in general, fiat will still exist and crypto will not replace it, fiat as the basis for crypto exchange for each local currency in their country , sorry that's my opinion