Crypto

[pathospades]

What are your thoughts on cryptocurrency?

I think there are a lot of promising returns on it, particularly the DOLLAR VALUE on it, but as an economy, it's kinda frightening to think about, because I feel like the rich will get even richer and the poor, even poorer.

[Key Board]

Why do you think a $1 is worth a $1

It’s because enough people agree it’s worth a $1

And for better to worse, it’s because enough people has faith in the US economy and their several hundred military bases across the globe

There is no all seeing math god setting the rates. Currency is an honor system

Decentralized Crypto as we know it, is a bunch of snake oil salesman trying to convince enough people that converting several hours of electricity to produce an encrypted number has some value

Despite it trying to market its decentralized structure as a selling point, it’s actually the thing that is hurting its real value.

Crypto will only gain real value if it gains acknowledgement from established footholds. Which is what it has done with paypal and most recently El Savador

But in doing so, they also gain more leverage over crypto

Because in the end who is the market going to trust more, a still useless technology or people,with actual power

The question is, what will happen to crypto if someone like Iran, China or Russia makes their own state backed digital currency

I think people will simply use that instead

//

[AnimeFan188]

Originally Posted by Key Board

The question is, what will happen to crypto if someone like Iran, China or Russia makes their own state backed digital currency

We're about to find out:

"China’s version of a digital currency is controlled by its central bank, which will
issue the new electronic money. It is expected to give China’s government vast
new tools to monitor both its economy and its people. By design, the digital yuan
will negate one of bitcoin’s major draws: anonymity for the user.

Beijing is also positioning the digital yuan for international use and designing it to
be untethered to the global financial system, where the U.S. dollar has been king
since World War II. China is embracing digitization in many forms, including money,
in a bid to gain more centralized control while getting a head start on technologies
of the future that it regards as up for grabs."

See:

https://www.wsj.com/articles/china-c...my-11617634118



========================



The U.S. is also looking to create a digital currency:

"The United States lags behind in its own research. However, both Fed Chair
Jerome Powell and Secretary Janet Yellen have recently signaled that the US
may start moving faster on a digital dollar."

See:

https://www.atlanticcouncil.org/blog...al-currencies/


========================


And that's just the beginning:


Cryptocurrency Is In a New Wild West Phase. Things Are Really, Really
Weird

"Most people have probably heard of Bitcoin and Ethereum, which have chugged
along for years now, but 2021 has been the year of DeFi. DeFi can be described as
a philosophy, or a movement, but in practice today it means new tokens like ASS
created on the Binance Smart Chain, a blockchain spun up by cryptocurrency
exchange Binance that is similar to Ethereum but less mature and with much lower
fees. Sending and receiving BSC-based tokens is cheap, and so is creating them.

John Jefferies, CMO and Chief Financial Analyst at blockchain forensics company
CipherTrace, said a transaction that costs the company $30 to execute on Ethereum
costs them $3 to do on BSC. This low cost has led to an explosion of new tokens
that can best be described as financial shitposts all vying for a critical mass of
investors online. There are hundreds of thousands of BSC tokens in the wild right
now, many of them with weird, funny, crude, anatomical, or even scatological
names. Founders are often anonymous. There are billions of dollars on the line, and
everyone—from token creators, to investors, to hackers, to social media promoters—
is trying to cash in."

See:

https://www.vice.com/en/article/88n8...y-really-weird