The Problem with Digital Currency

certainly there must be some digital currency users here that can explain the value in it.

even if that value is just that it is an alternative.

all currency is only worth what you can get for it in trade.

there is no failsafe currency.

gold is as close as you can get but in SHTF
you'll trade gold coins for cans of beans if your family
is hungry.

yes but gold has real value and is a physical currency

bitcoin and the dollar are just 1s and 0s in a computer

Answer...profit.

Bitcoin profit in 7 months 8,000%

Dogecoin profit in 7 weeks 600%

Litecoin profit in 6 months 2,000%

Namecoin profit in 6 months 3,000%

So...what's in your wallet?

Buy Dogecoin and soon MaxCoin here: [link to www.coins-e.com (secure)]

Snooze ya lose!



Last Edited by PIR on 01/30/2014 11:55 AM

i totally understand that aspect. get in on the ground floor and profit off the confidence of a bunch of tards

Yep same game, different name. it's not a currency at all.

LOTS of cans of beans.

that is basically how i feel about it

i do admire the systems they put into place though

Also, unlike physical currency, it is worth ZERO, if the electrical grid goes down.

ding ding ding

we have a winner

How about you can't touch it...Is it real??? Or shit it probably will be hacked and they;ll stael all of the poor peoples Money - what little they have...

look at it this way.

gold is rare - it would take you years to take a shovel and go dig it up.
bitcoin is rare - it would take you years to mine bitcoins.

hell, most people here pay their bills and buy shit from amazon online. with what? zeros and ones.

rare = value in peoples minds

.

I don't get it either. If anything, it seems even more risky.

It is important to remember that Bitcoin is NOT a fiat currency. To create Bitcoins, you have to mine them, and there is a limit to how many can be created, I think it is 22 million, and the closer we get to the 22 million, the more difficult it is to mine them. The dollar on the other hand, can be printed at will, Yellen wants to increase QE instead of taper, by fiat she can buy another 10, 20, 30 billion a month in bonds or mortgage backed securities. The same is true with paper gold, that is how they are driving down the price...I feel like these currencies have a future.

Most currencies are digital now but currencies like the USD are centralized and can be created non stop with little effort. The majority of cryptocurrencies are decentralized and have a cap on the number of coins minted and they are created by using electricity and hardware. Lots of labor had to be done to acquire the materials to manufacture all the devices that make up the cryptocurrency networks. Now anyone can have their own digital printing press and can even create their own currency instead of that kind of power only being in the hands of a few.

it's not a fiat currency in that there is a cap to how much will be created

but it is fiat in that it is backed by only confidence

if that makes sense

More like the other way around. Lots of gold for a can of beans...

^^ this

Currency is only meaningful if there is a functioning society to value it. Gold is meaningless if everyone is starving.

You just described the classic Ponzi scheme.

"Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the high returns requires an ever-increasing flow of money from new investors to sustain the scheme."


[link to en.wikipedia.org]