Bitcoins: A new world without green backs.
I have no money to invest. I am, however, a curious person by nature.
With nothing to risk--yet curious--I set about watching PRO and CON videos over a period of one month.
It took me quite awhile to adjust.
Explanations which are glib and off-the-cuff aren't informative; mostly dismissive.
But the deeper I got and more familiar I became with the TOTAL story, purpose, and function of BitCoin--the more convinced I am we are on the threshold of a Singularity--A BLACK SWAN event--a new paradigm which has become a NECESSITY because of corruption in our Banking System and unenforced laws and few (if any) prosecutions in High Finance.
Our monetary system is broken and it cannot be fixed. Those who could do some good cannot budge the corruption.
Having said all that...
The best tutor to watch and listen to is a fellow who lets you know who is opposing BitCoin while he's laying it all out for even a newbie to understand. I've chosen this video among all the ones I've watched.
(Incidentally, my son put 100$ into BitCoin a few months into 2017.
He quickly became a True Believer.
Prudently, he removed his hundred and let his profit ride (now that he won't lose it).
As of this moment, he is "wealthy" beyond any previous standard of reckoning.
Your mileage may vary, certainly.
Watch start to finish. It rewards your attention.
And sorry you didn't get in but I'm doing pretty good since I sold my bitcoins bought in 2015 at $300 a bitcoin and sold this year.
When you sell your Bitcoin, how are you paid ?
In regular currency or do they somehow transfer it's worth to a regular bank?
Is there some sort of exchange rate?
You go to through an/your exchange and they link into your bank account which is watched by the IRS btw.
In Fidelity you can by into grey scale bitcoin trust. So anyone with Fidelity security account can help you.
But: I've been called a dumbass so beware of my advice:)
Regardless of your political affiliation, the fact that BitCoin is Technocratic, scientific, predictable mathematic currency, it's not up to the whims of any government--but also--, it's not up to the control of any corporation; it's not up to the control of any individual; not up to the control of any "Hippie" coders...it's not up to the control of anyone.
It IS and always WILL BE controlled by the consensus of everyone who is participating in this P2P paradigm. That's what makes it different, special, untampered; not relying on Trust, Faith, or Luck.
If for no other reason, because you can count on BitCoin surviving fear of manipulation.
Since the advent of BitCoin, more than 100 ALTERNATIVE cryptocurrencies have emerged. These "Alt-Coins" are interesting because they represent the evolutionary environment surrounding BitCoin. The Other Species. Each judged by its 'fitness function'.
1. Useful for everyday transactions?
2. Useful for a store of wealth?
3. Predictable as to volatility?
4. Is it useful for Capital investments?
5. Does it have large economies backing it? (Gross domestic product.)
So each of the emerging Alt-Cons is judged by the above as to fitness to survive.
FIAT CURRENCIES (we print as much as we want without regard to inflation) bypass the above tests of fitness. Government interposes itself as sole arbiter, levying taxes and demanding payments be made in said fiat currency. A government, in effect, manipulates value as a quality untested by the utility in real-world terms of fitness or competition.
Cryptocurrencies are different. Individuals pick the ones which meet their standards and needs. The cost of converting from one currency to another is set by valuation (gaining or losing in the changeover.)
The costs of crypto-currency changeover are very low due to fungibility.
(Generally, half a percent.) Ease of exchange is a hallmark of this ethos.
What Saves Bitcoin from the Bubble is that due to the 100's of competing Alt-Coins, as BitCoin gains or dies itself--customers quickly change to a more competitive market version of crypto-currency.
Crypto-currency itself survives as a superior evolution of the need for a private, unregulated method of money transfer person to person, entity to entity without interference or tampering.
Bitcoin is a complete lie and a speculative bubble.
In theory, it's valuable as a currency, yet no one spends it (really, apart from a few techies)
In theory, it saves currency exchange costs, yet really adds additional costs to fiat transfers as well.
In theory, it has value as a payment system, yet can only process about 10 transactions a second (yes, 10), Visa processed hundred of thousands.
In theory, it is more secure as a currency than bans, yet the experts who run exchanges frequently get hacked and lose millions of $.
It acts as a vehicle for ransom ware and crime.
It is ultimately controlled by unknown people (someone has "the keys" and they are anonymous).
Normal people are never going to use it.
It consumes huge amounts of resources to run for nothing.
Right now it's purely a speculative bubble following the trajectory of previous bubbles that will eventually pop.
When it does, I hope no one is compensated and no time is wasted by law enforcement because really, what has been stolen, what has been lost? Some numbers?
It's a tech invention made with little regard to the effect on society, like many other tech-bro nonsense. The people who will lose will be the late "investors" caught up in the hype thinking they are going to make money. The people who "make" money won't keep it as bitcoin, they will cash out into the currencies that they claim bitcoin is going to replace.
Bitcoin is not without risks. First, there is market risk. Unlike silver, the price of Bitcoin can go all the way to zero. You have the risk of losing them if they get hacked or the device that contains your wallet craps out. They can become illegal at any time. And, if and when we get Internet II, there goes the whole cryptocurrency system. Right down the drain.
Compared to silver--I would like to see them try making silver go all the way to zero without having me take the whole world's supply. Beyond that, let them try destroying my silver simply by destroying the Internet. Many of my silver coins have been minted long before the Internet even existed. If my dimes and quarters made in 1964 and before were around then, they will be around when Internet II becomes reality. And so will my rounds, bars (both poured and struck), and modern government issued coins. To confiscate that, they will have to find it physically. No confiscating it with a click of a mouse or by shutting down the whole Internet.