Bitcoin

Originally posted by LibertyS ↑

I’ve been studying currency and money for quite a few years now... so I hope this post adds value.

Bitcoin and other crypto currencies are not stable enough yet, let’s say you purchased a car with bitcoin and before the car company could transfer bitcoin into another form of wealth it may have lost 20% or if lucky gained 20%, at this stage it is not a stable form of payment while it’s so volatile, everyone is happy now because it’s bullish ... the same euphoria that brings forth a melt up can and will eventually bring a melt down just as quickly... i was looking buying in at $4000 but now it’s over $20000 and could double or triple from here... and could potentially lose 50% just as quick, I’m too timid for such volatility, I certainly wouldn’t want to run a company using it as a form of payment unless I was a real punter.

Don’t get me wrong, I’m not against bitcoin it’s flipping much better then manipulated fiet currency backed by huge debts... so it’s an amazingly good alternative.

I believe a block chain pinned to Precious metals will eventually become the way of the future, but in order for that to happen the fiet system will have to collapse first, then and only then central banks will have no more reason for manipulation of Gold and Silver, they would essentially skyrocket, like crypto currencies, they could potentially start up in every country with their own expression... however they would need to be more regulated by auditing volts extra, so not completely independent of third parties... However bitcoin is subjective to software changes so it’s not completely off the hook either.
You might then ask... well what if pm crypto is more expensive on one blockchain exchange over another.... traders would trade the difference in the exchanges, which ultimately brings stability.. it works in the stock market when a company is listed on serveral exchanges around the world.

Hey this is complete speculation... however at the moment it’s costing a lot of electricity to mine nothing, that nothing coin is only backed by consumers confidence and faith...

Where as Gold and Silver are precious and rare form of recognised money and has been for 5000 years, it can’t simply disappear in a melt down, it can lose value but it’s still there... gold is nearly indestructible + China, Russia & others continue to accumulate.

I believe bitcoin is better then fiet money, however it’s still not ideal form of safe haven wealth... when the next block chain comes out offering intrinsic value... watch how quick the transfer happens to it.

I believe central banks around the world are already working on a solution to stable blockchain ... I believe they will embrace the new technology, they don’t care about any of the brands at this stage, they will have a much superior one.

If I had made a lot of money on crypto, I would be transferring at least some of it to pms.

Again just speculating.... let’s see what happens

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I pretty much agree with you on the major points.

- Crypto is too volatile at the moment to be used as a currency. At the moment it used as a speculative asset.
- Changes and upgrades to the blockchain means that what is popular today in cryptocurrency won't necessarily be the same as tomorrow.
- I also like the idea of a precious metal backed crypto. Hopefully this idea takes off as it solves the only downside of crypto, which is that it doesn't have intrinsic value other than scarcity.

The blockchain is definitely a game changer. As this becomes more recognised and agreed upon, money is flocking to Bitcoin to try to capture those capital gains. The only issue is whether Bitcoin is the blockchain answer - because it could just as easily be any number of competing cryptos or ideas.