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It's also like Buying BHP 30 years ago
It's also like Buying BHP 30 years agoThe difference being legal gambling is regulated and the odds of winning in each type of game are known. When you speculate on crypto, it's all about price movement/momentum on those unregulated exchanges, there is no underlying business generating revenue or asset possessing intrinsic value. A bit like trading currency pairs on Forex exchanges except it's real "currency" and those trading it successfully are skilled leveraged risk managers (perhaps no more than 5% of all FX traders).
Hey, I resemble that remark.It's also like Buying BHP 30 years ago
The difference being legal gambling is regulated and the odds of winning in each type of game are known. When you speculate on crypto, it's all about price movement/momentum on those unregulated exchanges, there is no underlying business generating revenue or asset possessing intrinsic value. A bit like trading currency pairs on Forex exchanges except it's real "currency" and those trading it successfully are skilled leveraged risk managers (perhaps no more than 5% of all FX traders).
I don't!except it does have value, just only in certain rare niches at the moment. the vendor i bought most of my PC components from (a large US company) was perfectly willing to accept BTC (and a few other coins, even DOGE) in exchange for those PC components, which do have intrinsic value. they're running a business, they wouldn't just give me those components for something that's worthless, so clearly they do think it has value.
I have always thought This was a Brilliant Pyramid Scheme
and that the last one holding "LOSES!"
View attachment 149245
Price and value are quite different things. Crypto has a price, that price is represented by a local fiat currency and converted into that currency to complete the transaction for the business entity. As most businesses well understand you don't keep BTC in your treasury or on your balance sheet, far too volatile in price for that. For the sake of getting a sale, transacting in crypto has a holding risk that necessitates rapid conversion to local fiat (USD in your example). For low margin sales like PC components, accepting BTC means your profit margin can literally evaporate and turn into a loss within minutes.except it does have value, just only in certain rare niches at the moment. the vendor i bought most of my PC components from (a large US company) was perfectly willing to accept BTC (and a few other coins, even DOGE) in exchange for those PC components, which do have intrinsic value. they're running a business, they wouldn't just give me those components for something that's worthless, so clearly they do think it has value.
indeed a valid point , but then the other widely accepted currency is a fiat currency ( which is backed by government promises .. they don't even promise to pay in gold or silver in recent times )except it does have value, just only in certain rare niches at the moment. the vendor i bought most of my PC components from (a large US company) was perfectly willing to accept BTC (and a few other coins, even DOGE) in exchange for those PC components, which do have intrinsic value. they're running a business, they wouldn't just give me those components for something that's worthless, so clearly they do think it has value.
That doesn't mean that the coin has value, it just means the person accepting it believes it does, they can be wrong.except it does have value, just only in certain rare niches at the moment. the vendor i bought most of my PC components from (a large US company) was perfectly willing to accept BTC (and a few other coins, even DOGE) in exchange for those PC components, which do have intrinsic value. they're running a business, they wouldn't just give me those components for something that's worthless, so clearly they do think it has value.
even people that say they accept Bitcoin still are actually basing their prices on the fiat currency, for example if the bitcoin price halved over night their bitcoin prices would change, so its not really a currency they are accepting, its more like a commodity.indeed a valid point , but then the other widely accepted currency is a fiat currency ( which is backed by government promises .. they don't even promise to pay in gold or silver in recent times )
interesting times
except it does have value, just only in certain rare niches at the moment. the vendor i bought most of my PC components from (a large US company) was perfectly willing to accept BTC (and a few other coins, even DOGE) in exchange for those PC components, which do have intrinsic value. they're running a business, they wouldn't just give me those components for something that's worthless, so clearly they do think it has value.
i didn't dabble in cryptos , but sometimes have been swapping my fiat into durable ( storeable ) commoditieseven people that say they accept Bitcoin still are actually basing their prices on the fiat currency, for example if the bitcoin price halved over night their bitcoin prices would change, so its not really a currency they are accepting, its more like a commodity.
indeed a valid point , but then the other widely accepted currency is a fiat currency ( which is backed by government promises .. they don't even promise to pay in gold or silver in recent times )
interesting times
That doesn't mean that the coin has value, it just means the person accepting it believes it does, they can be wrong.
the same could be said for fiat too, it's just been around for much longer and so has (a lot) more people who are willing to believe it does. though that may not necessarily be true in some nations.
“Digital Surge does hold some limited exposure to FTX, “Since hearing the news, we have worked hard to best understand the situation as it relates to our users.”
The fear we should all have is crypto 'dealers' paying/bribing investment managers in untraceable crypto coin to invest our super $$$ in their dodgy crypto Ponzi schemes.Brisbane-based crypto exchange Digital Surge has frozen withdrawals, pointing to its exposure to bankrupt global player FTX.
Digital Surge, which is a six-year-old company, revealed its vulnerability to Sam Bankman-Fried’s collapsed trading platform in an email to customers.
Dan Rutter, the co-founder and CEO, recently said the company was targeting self-managed super funds through its “Earn” product, which supposedly offers investors annual returns of up to 23 per cent.
- too good to be true!
Only the most diehard bitcoiners are still pushing the currency use case for Bitcoin, even though it's unsuitable for this purpose as the El Salvador experiment has clearly demonstrated.If bitcoin was actually just being used as a genuine currency, it would be a different story, but its not actually being used as a genuine currency. So even as a currency at the moment it has next to no value.
I think we could all agree that even fiat currency has no value in itself, its simply a token we use to record and carry out transactions, its like an IOU, its coins and paper themselves have little value, as you can see in the many debunked currencies that exist, any one that said the way to riches was to store currency is not thinking straight.
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