Crypto Currencies ~ " Duck Tales Spin From The Crypt"

Why what happened today?

 

Nothing but the fact that we all wished we did it 5 years ago... haha

 

I better be careful with what I say here because I don't want to get "banned" or go off on a tangent...

I have to remind myself:

 

I can’t see it becoming a mainstream payment option until there’s an efficient and accessible market for companies to hedge their exposures. When something can lose almost 20% of its value in a day, like it has today, no company in their right mind is going to accept that kind of fluctuation – shareholders would never stand for it. Until futures, swaps, and options are widely available, I don’t know how companies are going to be able to accept it as payment in a widespread fashion. Companies already hedge their foreign currency exposures – this is nothing new except instead of 1% daily swings we are talking 20%+. The risk is way too great.

I am staying as far away from cryptocurrencies as I can right now. It’s backed by nothing but the technology. Call me old-fashioned, but I trust a currency backed by the United States government more than one backed by a developer’s software code.

 

Well it did hit 10k today so there's that...

 

I don't.

Crypto is another form of wealth preservation that is purposely not tied to fiat, just like PM's.

They will have futures very shortly, but it is unknown the impact that will cause.

 

I'm with you man.

 

Is there a better option to buy/sell than coinbase? Coinbase is sure easy to use.

 

This will be all fine and dandy until countries like China or Russia continue to invest heavily into crypto currency and make an attempt to divest in the USD and use it as a global currency.

 

Well at the rate were going will end up doing it for them. A nation can only devalue their currency so much until it becomes useless.

 

As long as opec uses the USD, it won't matter. Once that is no longer the case, this empire known as the United States crumbles.

 

GDAX is owned by coinbase, but it has lower fees and more technical analysis tools.

 

Yep, which is why we kiss up to the Saudis the whole time they're exporting terrorism.

 

I love how everyone thinks the USA is this world super power when its countries like Saudi Arabia who are low key running EVERYTHING

 

And that's fine that you don't – although if the US government crashes, you can bet that your bitcoin will be worthless far before the dollar is. I can easily see these currencies carve out a niche in the payment systems where you all who own them decide among yourselves how much they're worth and you trade using them, and I have no problem with that. I just don’t expect them to be widely accepted in the traditional retail markets because of the risk. If a CEO gets caught dealing in cryptocurrencies and loses 15% of his company’s revenues because of a wild swing in the market, you can bet he will be out of a job faster than you can even say “bitcoin”. And that alone will keep a lot of retailers out of the market until, as I said, there is an easy way for them to eliminate the risk off of their books and put it on someone else (i.e. investors in the other side of the swap transactions). That’s where the futures and swap markets will be a huge benefit to the viability of cryptocurrency.


Bitcoin and the like are nothing more than a junk-level currency that happens to be reported in a USD exchange rate (before anyone gets offended, I mean “junk” as in speculative, non-investment grade, not something you shouldn’t invest in). If the bitcoin “economy” collapses, you can kiss it goodbye just like if it were money issued from the government of some small, unstable country whose economy melts down. Imagine if you were selling your house for $200,000 and someone offered you 20 bitcoin based on a $10,000/coin price at that time, and you accepted it. And then before you close, the market collapses to $3,000/bitcoin. You just sold a $200,000 house for $60,000. Again, count me out in treating it as a currency. As a peer to peer payment mechanism, sure, as long as both parties are in full agreement of the exchange rate at that time, more power to them. But at the end of the day, real global economies thrive on stability.

 

If the dollar crash's no form of currency will be safe except precious metals, maybe.

 

Couldn't agree more. IMO, to say you don't trust the USD over another currency is basically saying you think the world is going to end. If the USD crashes, nothing is safe.

 

Where did all the BitCoin fan boys go?

 

It all boils down to a simple binary question: Will the world adopt crypto as the mainstream way to transact digital currency internationally over the next few decades?

Yes: Bitcoins, altcoins, all of them gain value and become commonly used. The more commonly used ones gain a lot more value.

No: We all lose and currency stays in the analog days




The mainstream media, governments, and especially banks don't like it because THEY don't have control over it.