Elixir
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A government sponsored version of bitcoin, equivocable to bitcoin.WTF is "physical economic valuation"?
A government sponsored version of bitcoin, equivocable to bitcoin.WTF is "physical economic valuation"?
You can buy anything with bitcoin that you could buy with any other foreign currency.It is sounding like a video game.
I'm not an expert in economics.
As I see at the end of day the only value of currency is in what you can buy with it.
OK. And are they?I I go to a storeand potatoes are in dollars/pound or euros/kilogram.
Comparing dollars to euros we can assess relative value in terms of local buyng power.
I'd think bitcoins are useless unless it is valued relative to a state currency.
Yes, according to you, they are.I have 100 bitcouns, how do I buy something withit?
How much is $1 US in bitcoin?
0.000059633 BTC
1 USD = 0.000059633 BTC Nov 12, 2022 04:39 UTC
I'm not sure what you're talking about.No reason? How would it even work? Would the insurer own real Bitcoins to make good on exchange losses? Would the insurer promise to redeem Bitcoins at some dollar price? (I suppose there are Bitcoin Put options already.)There is no reason there couldn't be. It's just a matter of regulation.No FDIC on funny money.
Yea, but in exchange for the FDIC insurance, the banks have to follow rigorous regulations and laws.I'm not sure what you're talking about.No reason? How would it even work? Would the insurer own real Bitcoins to make good on exchange losses? Would the insurer promise to redeem Bitcoins at some dollar price? (I suppose there are Bitcoin Put options already.)There is no reason there couldn't be. It's just a matter of regulation.No FDIC on funny money.
If a bank gets robbed by Bonnie and Clyde, insurance or the bank covers certain amount of savings in $ or € or other currencies. All I'm saying is that there's no reason why it couldn't work exactly the same way with bitcoin. How the insurance works is immaterial.
Yes. It's just a decimal number and the smallest unit is "satoshi", which is 0.00000001 bitcoin. I suppose the system can be updated to be able to handle even smaller fractions in the future, if bitcoin value becomes ridiculously large.One question I have about crypto currency.
say a bitcoin is worth $1,200 at the moment. I want to buy something with it that costs $159. How is change handled?!? Can you have a fraction of a coin?
The problems arise when cryptonites try to do things that are usually done by highly regulated institutions. FTX and its uncountable number of subsidiaries tried to be an investment bank and use other people's cryptocurrency as if it were regular money. National banking regulators such as the Federal Reserve and the Bank of England work very hard to keep their currency stable.Jebus... makes the S&L scandal look quaint.
Who'd think an unregulated system for funny money would be so volatile.
As of August 2022, published estimates of the total global electricity usage for crypto-assets are between 120 and 240 billion kilowatt-hours per year, a range that exceeds the total annual electricity usage of many individual countries, such as Argentina or Australia.Sep 8, 2022
To verify transactions, Bitcoin requires computers to solve ever more complex math problems. This proof of work consensus mechanism is drastically more energy-intensive than many people realize.May 18, 2022
The first time someone explained bitcoin to me, my first thought was it was either a Ponzi scheme or a Bubble. Now I think crypto is actually both.Mining Explained: A Detailed Guide on How Cryptocurrency Mining Works
Most people think of crypto mining simply as a way of creating new coins. Learn More....freemanlaw.comBitcoin Uses More Electricity Than Many Countries. How Is That Possible? (Published 2021)
The most popular cryptocurrency wastes energy by design. Why is that, and could it ever be greener?www.nytimes.com
It sounds a lot like a pyramid scheme. It is interesting that my Firefox browser says it inhibits crypto mining.
It is also not green. A cmpany wanted to buy a shut down natural gas power plant to power a crypto miming operation.
It appers that as crypti grows the CPU time grows and enrgy demnd grows. It is not a fixed bounded opertion.
As of August 2022, published estimates of the total global electricity usage for crypto-assets are between 120 and 240 billion kilowatt-hours per year, a range that exceeds the total annual electricity usage of many individual countries, such as Argentina or Australia.Sep 8, 2022
To verify transactions, Bitcoin requires computers to solve ever more complex math problems. This proof of work consensus mechanism is drastically more energy-intensive than many people realize.May 18, 2022
People don't trust banks and governments but trust crypto companies with no oversight, transparency, and accountability.
You are better off buying gold and burying it in the back yard.
I'm not sure what you're talking about.No reason? How would it even work? Would the insurer own real Bitcoins to make good on exchange losses? Would the insurer promise to redeem Bitcoins at some dollar price? (I suppose there are Bitcoin Put options already.)There is no reason there couldn't be. It's just a matter of regulation.No FDIC on funny money.
If a bank gets robbed by Bonnie and Clyde, insurance or the bank covers certain amount of savings in $ or € or other currencies. All I'm saying is that there's no reason why it couldn't work exactly the same way with bitcoin. How the insurance works is immaterial.
I'm talking about a hypothetical scenario where banks would provide a custodial service to its customers to hold their bitcoin (or other crypto) for them. Basically what all crypto exchanges do already now. (Except that they don't have any insurance, so it's insane to keep your bitcoin in the exchanges for any longer duration of time.)I'm not sure what you're talking about.No reason? How would it even work? Would the insurer own real Bitcoins to make good on exchange losses? Would the insurer promise to redeem Bitcoins at some dollar price? (I suppose there are Bitcoin Put options already.)There is no reason there couldn't be. It's just a matter of regulation.No FDIC on funny money.
If a bank gets robbed by Bonnie and Clyde, insurance or the bank covers certain amount of savings in $ or € or other currencies. All I'm saying is that there's no reason why it couldn't work exactly the same way with bitcoin. How the insurance works is immaterial.
I'm not sure why you didn't understand what I am talking about.
Banks pay premiums to an entity backed by an entity with great financial strength (the same entity, BTW, which prints the Benjamins in which restitution is made). That is how FDIC works.
Bitcoin deposits are not operated by banks — nor by anything else — this is the "beauty" of Bitcoin, at least in the eyes of some beholders.
"How the insurance works is immaterial" ?? Can you at least give us a clue? WHO is paying premiums to WHOM? Is the restitution made in the insured coin? Can you agree that "work exactly the same way" is at best an . . . exaggeration?
Hey, I'm just interested in the tech. I have no clue if crypto is a good investment.You guys ( Swammerdami & Jajay) must be crypto oracles or something cause FTX Trading Limited is looking like
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STX took daily user money and invested in risky ventures,. A regulated bank could never do that.
Steve is correct. The FDIC would not allow a bank to make the crazy investment that FTX did. The comparison to 2009 is faulty. They crypto investments are gone. No recovery. Many of the bad loans from 2009 were paid back (often when the home sold or was foreclosed).Hey, I'm just interested in the tech. I have no clue if crypto is a good investment.You guys ( Swammerdami & Jajay) must be crypto oracles or something cause FTX Trading Limited is looking like
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I got some cryptos around somewhere but I take the attitude that it's worth nothing, and maybe will check again in decade or two.