Nihalthandi
Inactive User
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- Jun 10, 2022
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I’m looking to get into crypto. Any help for a beginner?
It’s is backed buy billions of hours of computing that is creating the 21million coins that will eventually exist.He didn't mention it because it isn't relevant to the point he was making, that bitcoin isn't backed by anything of real value, or any government or central bank which would support it in a crisis.
Neither is fiat backed by anything.He didn't mention it because it isn't relevant to the point he was making, that bitcoin isn't backed by anything of real value, or any government or central bank which would support it in a crisis.
Exactly it’s an iou. The world is run on debtNeither is fiat backed by anything.
Every note that is printed is straight into debtExactly it’s an iou. The world is run on debt
World debt currently over $300 trillionEvery note that is printed is straight into debt
I’m looking to get into crypto. Any help for a beginner?
Please explain exactly how that gives any value to bitcoin.It’s is backed buy billions of hours of computing that is creating the 21million coins that will eventually exist.
Not quite true. Although there is no gold or other assets to back fiat, there is the guarantee of the government which issued it, who can step in to support the currency in a crisis.Neither is fiat backed by anything.
It’s also backed by money that is invested into its market cap that fluctuates like any other asset. Mining BTC is a multi million dollar industry.Please explain exactly how that gives any value to bitcoin.
We will all be alright then won’t we as we can always trust a good old governmentNot quite true. Although there is no gold or other assets to back fiat, there is the guarantee of the government which issued it, who can step in to support the currency in a crisis.
So what exactly is this money "invested" in its market cap? Do you mean the money investors spent to buy bitcoin? If so, then that money is gone, because it has all been converted to bitcoin, so cannot provide any backing.It’s also backed by money that is invested into its market cap that fluctuates like any other asset. Mining BTC is a multi million dollar industry.
We are moving towards a digital age where Financial institute and businesses will use Blockchain technology to run their finances. I think BTC and some other crypto currencies will play a role in this innovation. If enough people adopt and see value in something it becomes valuable over time as BTC is doing. To say it has no value is just naive imo. Now you tell why it has no value, that’s if you think that.
I don't think that anyone would suggest that a British government would behave as recklessly as Germany's Weimar government or Zimbabwe's Mugabe government, which is what it would take for the value of sterling to collapse. Barring that, the IMF/World Bank would not allow a major world currency to collapse and would step in to support it, inevitably with the requirement for austerity measures until the currency stabilised.We will all be alright then won’t we as we can always trust a good old government
When the pound was the dominant world currency (over 100 years ago) we were on the gold standard, so it wasn't a fiat currency.I will add that the Dollar is the most widely used fiat currencies and before that it was the Pound. I think in the future it will be a crypto currency and it will have other crypto currency competitors.
Can you explain what units are being used in that vertical scale to measure purchasing power?I know the that the Pound was on the gold standard as was the Dollar but now governments are just fiat printing at will. The IMF hate crypto currencies because it is undermining their monopoly on the fiat system and the banking system’s that have a massive influence on government’s and world leaders.
Here’s a Dollar chart for you look at.
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