The Battle Over Your Money

[RVonse]

https://youtu.be/N7m2KGB0rd8

As the days of physical money are nearing an end there is at present a battle emerging between bitcoin and a US based digital currency. According to this guy, the public acceptance of bitcoin will make it impossible for the US government to ever control your money in the future. I agree with all he has to say and I also believe that given a choice, rational people will favor bitcoin.

But what he does not answer (to my satisfaction) is how everyone will be able to trade in bitcoins when taxes will be due in whatever the government requires. For example, what will happen if the government requires income tax to be payable in US digital but makes it prohibitively expensive to convert bitcoin into that currency? The banksters and politicians will then still have everyone by the balls.

 

[Jimmy Higgins]

Yeah, high volatility is the first thing to look for in a currency. People love having money that can be worth 2x tomorrow or 1/2x tomorrow... for no reason.

 

[Horatio Parker]

Sure, lets turn our currency to a bunch of anonymous bitcoin speculators. What could go wrong?

 

[Jimmy Higgins]

BREAKING NEWS: People with lots of Bitcoin want to normalize Bitcoin for a bump in the value of Bitcoin so they can sell out of Bitcoin.

 

[funinspace]

Yeah, high volatility is the first thing to look for in a currency. People love having money that can be worth 2x tomorrow or 1/2x tomorrow... for no reason.

Another problem is that the IRS treats bitcoin (and others) as a currency, so if/when you make any accidental profit on holding bitcoin, your tax filings will be messier. It is even worse than trading gold (unless one holds it in an IRA). The US govt. is/will make such a 'choice' harder...

https://www.forbes.com/sites/matthougan/2019/06/11/how-bitcoin-is-taxed/#1096da66da5b

Currency: Currency is taxed at regular income rates. No matter how long you hold a currency investment like the Invesco CurrencyShares Japanese Yen Trust (FXY), you never qualify for long-term capital gains. Instead, you pay your marginal income tax rate on any gains, up to 37% on federal taxes. Ouch.

Digital currencies might have a place in the future, but I'd bet it will emerge out in Asia somewhere first. Americans still luv their paper money far more than many other places...

 

[Jimmy Higgins]

Yeah, high volatility is the first thing to look for in a currency. People love having money that can be worth 2x tomorrow or 1/2x tomorrow... for no reason.

Another problem is that the IRS treats bitcoin (and others) as a currency, so if/when you make any accidental profit on holding bitcoin, your tax filings will be messier. It is even worse than trading gold (unless one holds it in an IRA). The US govt. is/will make such a 'choice' harder...

https://www.forbes.com/sites/matthougan/2019/06/11/how-bitcoin-is-taxed/#1096da66da5b

Currency: Currency is taxed at regular income rates. No matter how long you hold a currency investment like the Invesco CurrencyShares Japanese Yen Trust (FXY), you never qualify for long-term capital gains. Instead, you pay your marginal income tax rate on any gains, up to 37% on federal taxes. Ouch.

Digital currencies might have a place in the future, but I'd bet it will emerge out in Asia somewhere first. Americans still luv their paper money far more than many other places...

Bitcoin feels a bunch like DraftKings, where it is simple and you can win real money, but deep in the system, there are people fixing the game. Trying to time the stock market is insane these days. Bitcoin even looks purposefully manipulated at times.

 

[RVonse]

Yeah, high volatility is the first thing to look for in a currency. People love having money that can be worth 2x tomorrow or 1/2x tomorrow... for no reason.

That is why I haven't bought any bit coin yet.

But if you watch the video, he makes a compelling case (to me at least) how wages (and a lot of other metrics) have not tracked with gdp growth since 1971. 1971 was also when income disparity shot upwards compared to gdp. In short, the dollar being taken off the gold standard has allowed the banksters to cheat the middle class. The height of the fraud was perpetrated during the 2008 banking crises and that is when bitcoin was first invented.

Anyway, the reasoning is that when enough rational people decide to use money that can not be manipulated by special interests, they will. And that there will be nothing any government can do to prevent it. At some point there will be so many on board bitcoin will no longer be volatile becoming a defacto currency for the world.

 

[Jimmy Higgins]

Yeah, high volatility is the first thing to look for in a currency. People love having money that can be worth 2x tomorrow or 1/2x tomorrow... for no reason.

That is why I haven't bought any bit coin yet.

But if you watch the video...

Why would I watch a video about a guy who says people should get into fake money?

...he makes a compelling case (to me at least) how wages (and a lot of other metrics) have not tracked with gdp growth since 1971. 1971 was also when income disparity shot upwards compared to gdp. In short, the dollar being taken off the gold standard has allowed the banksters to cheat the middle class. The height of the fraud was perpetrated during the 2008 banking crises and that is when bitcoin was first invented.

Part A true, Part B off the rails seeing gold was removed as a standard much earlier than 1971. There are ways to deal with Part A without relying on fake money that has no viable basis for its value.

Anyway, the reasoning is that when enough rational people decide to use money that can not be manipulated by special interests, they will.

People that own the most Bitcoin can manipulate Bitcoin much like robber barons manipulated gold (or tried to). The Fed, for the most part, has managed to keep the dollar stable. Before the Fed, the dollar was all over the place. The Fed is working. It isn't perfect, there is no perfect. But it certainly is better than a fake commodity whose value can shoot up extraordinarily huge amounts (or likewise fall as much) on a whim.

And that there will be nothing any government can do to prevent it. At some point there will be so many on board bitcoin will no longer be volatile becoming a defacto currency for the world.

Right now it is flat out gambling with absolutely no regulation on its value at all.

 

[Horatio Parker]

People that own the most Bitcoin can manipulate Bitcoin much like robber barons manipulated gold (or tried to). The Fed, for the most part, has managed to keep the dollar stable. Before the Fed, the dollar was all over the place. The Fed is working. It isn't perfect, there is no perfect. But it certainly is better than a fake commodity whose value can shoot up extraordinarily huge amounts (or likewise fall as much) on a whim.

See, this is why you need to watch the video. The bitcoin crash was engineered by bitcoin's enemies in the govt! But bitcoin fooled 'em cuz its STRONG.

 

[Horatio Parker]

Yeah, high volatility is the first thing to look for in a currency. People love having money that can be worth 2x tomorrow or 1/2x tomorrow... for no reason.

That is why I haven't bought any bit coin yet.

But if you watch the video, he makes a compelling case (to me at least) how wages (and a lot of other metrics) have not tracked with gdp growth since 1971. 1971 was also when income disparity shot upwards compared to gdp. In short, the dollar being taken off the gold standard has allowed the banksters to cheat the middle class. The height of the fraud was perpetrated during the 2008 banking crises and that is when bitcoin was first invented.

Anyway, the reasoning is that when enough rational people decide to use money that can not be manipulated by special interests, they will. And that there will be nothing any government can do to prevent it. At some point there will be so many on board bitcoin will no longer be volatile becoming a defacto currency for the world.

Are you aware that virtually all currencies are fiat?

 

[Derec]

As the days of physical money are nearing an end

Why do you think that? We can't even get rid of the penny. Physical money is not going anywhere anytime soon.

 

[RVonse]

Yeah, high volatility is the first thing to look for in a currency. People love having money that can be worth 2x tomorrow or 1/2x tomorrow... for no reason.

That is why I haven't bought any bit coin yet.

But if you watch the video, he makes a compelling case (to me at least) how wages (and a lot of other metrics) have not tracked with gdp growth since 1971. 1971 was also when income disparity shot upwards compared to gdp. In short, the dollar being taken off the gold standard has allowed the banksters to cheat the middle class. The height of the fraud was perpetrated during the 2008 banking crises and that is when bitcoin was first invented.

Anyway, the reasoning is that when enough rational people decide to use money that can not be manipulated by special interests, they will. And that there will be nothing any government can do to prevent it. At some point there will be so many on board bitcoin will no longer be volatile becoming a defacto currency for the world.

Are you aware that virtually all currencies are fiat?

It is my understanding that the 1940's Bretton Woods agreement required the US dollar to be tied to a gold standard. And for that requirement other countries would agree to use the US dollar as reserve currency of the world. But the US breached their part of the agreement in 1971.

If you look at history, it is between the 1940's and 1971. Those are the years the dollar was not only currency but real money. And those are also the years where the middle class was not screwed out of their productive gains by the fed cabal and banksters.

 

[RVonse]

As the days of physical money are nearing an end

Why do you think that? We can't even get rid of the penny. Physical money is not going anywhere anytime soon.

You see the signs everywhere Derec. I do my banking at Bank of America and they do not even have enough cash on hand to cash a $10000 check at any of their branches. If you give a restaurant a $100 bill for a $20 meal, many of them can not give you change back.

The government wants everything electronic so they can trace and track what everyone is doing.

 

[RVonse]

Why would I watch a video about a guy who want you to get in a fake currency who had value at all.

To become less ignorant. Im not sure bit coin is the answer either but the video has a lot of other information about the US history of the dollar you probably are unaware of.

 

[Jimmy Higgins]

Why would I watch a video about a guy who want you to get in a fake currency who had value at all.

To become less ignorant. Im not sure bit coin is the answer either but the video has a lot of other information about the US history of the dollar you probably are unaware of.

Did it mention the attempted run on gold or all those panics back in the 19th century?

 

[funinspace]

Why would I watch a video about a guy who want you to get in a fake currency who had value at all.

To become less ignorant. Im not sure bit coin is the answer either but the video has a lot of other information about the US history of the dollar you probably are unaware of.

Did it mention the attempted run on gold or all those panics back in the 19th century?

I would bet not...

Less ignorance: Reading from a PHD dude that is a Professor of Economics and Political Science:
https://www.oxfordscholarship.com/view/10.1093/0195101138.001.0001/acprof-9780195101133

Golden Fetters: The Gold Standard and the Great Depression, 1919-1939
Barry Eichengreen

ABSTRACT
The gold standard and the Great Depression might appear to be two very different topics requiring two entirely separate books, and the attempt to combine them here reflects Barry Eichengreen's conviction that the gold standard is the key to understanding the Depression.

 

[laughing dog]

Are you aware that virtually all currencies are fiat?

It is my understanding that the 1940's Bretton Woods agreement required the US dollar to be tied to a gold standard. And for that requirement other countries would agree to use the US dollar as reserve currency of the world. But the US breached their part of the agreement in 1971.

If you look at history, it is between the 1940's and 1971. Those are the years the dollar was not only currency but real money. And those are also the years where the middle class was not screwed out of their productive gains by the fed cabal and banksters.

I think you are confusing correlation with causation. After WWII, the US was the only industrialized country left untouched by the war. We benefited from the rebuilding of Europe and the growth of Asia. Which had nothing whatsoever to do with "real money" (whatever that is).

 

[Harry Bosch]

As the days of physical money are nearing an end

Why do you think that? We can't even get rid of the penny. Physical money is not going anywhere anytime soon.

You see the signs everywhere Derec. I do my banking at Bank of America and they do not even have enough cash on hand to cash a $10000 check at any of their branches. If you give a restaurant a $100 bill for a $20 meal, many of them can not give you change back.

The government wants everything electronic so they can trace and track what everyone is doing.

buddy: take off the tinfoil hat! BofA has plenty of cash. But they don't want bad guys stealing it.

 

[Derec]

You see the signs everywhere Derec. I do my banking at Bank of America and they do not even have enough cash on hand to cash a $10000 check at any of their branches. If you give a restaurant a $100 bill for a $20 meal, many of them can not give you change back.

Those anecdotes, even if true (I have not had any issues getting change from a restaurant, even when paying with a Ben Franklin, and I never had an occasion to need a $10,000 check in cash) hardly mean that cash is on the way out.

The government wants everything electronic so they can trace and track what everyone is doing.

That is certainly true, and a reason for demonetization in India as well as some other countries moving away from cash more than US. But even in those countries cash is hardly on a death bed and much less in the US!

Also, bitcoin is whack. The mining itself is a climate change disaster.
Not that I don't wish that I had bought a few $100 worth of bitcoin 10 years ago.

 

[Loren Pechtel]

Ever hear of a 51% attack?

Using any cryptocurrency for an economy would be a truly horrible thing.

Lets say we were utterly stupid and actually switched to bitcoin.

Russia secretly invests in a lot of bitcoin mining hardware. Everything looks fine until they day they decide to blow up our economy by buying a bunch of bitcoins and spending each one many, many times for things they can actually haul off. We lose a lot of things and our currency is destroyed.