New data hidden from the public shows America is in debt 100 trillion dollars. Great reset involves getting rid of bitcoin replacing it with fed coin. Money will be worthless
Submitted 2 years ago by wigglehard@wolfballs.com to freeforum@wolfballs.com
masterofballs@wolfballs.com 2 years ago
Bitcoin is a real threat to banks.
sj_zero@lotide.fbxl.net 2 years ago
Not really.
Currency is supposed to be three things: a medium of exchange, a store of value, and a unit of account.
At least presently, there really isn't that much exchange you can do using Bitcoin. The best you can do is buying bitcoin, selling Bitcoin in the local currency, then spending the local currency. You are basically dealing with a bunch of extra steps to do the thing you were going to do anyway. Not a great medium of exchange.
As for being a store of value, I wouldn't want to put all my life savings into Bitcoin. Sure, it's gone up at times, but it's also gone way down at times. Imagine you wake up on Monday you got paid, and by Wednesday you can't afford groceries because the value of Bitcoin dropped too much. It's volatility is being used as a selling point, because it's being sold to investors. The same volatility makes it a poor store of value. The dollar losing 7% of its value in one year is considered a crisis, Bitcoin lost half of its value.
This heavily fluctuating value makes it extremely poor as a unit of account. If you owned a store with everything priced in bitcoin, you would have to send someone out hourly to reprice your goods. When Tesla tried to sell their vehicles using bitcoin, they had to put a time limit on the amount of time you could take to do the transaction because from the beginning of the transaction to the end of the transaction the price of Bitcoin could have changed so much as to change the price of the car. That's not a unit of account.
Besides that, the banks do provide some very useful services for individuals. If you lose your bank card, you can walk into a bank with your ID and get another one immediately. If you lose access to your Bitcoin wallet, you're out of luck by design. If somebody starts making a bunch of fraudulent transactions on your bank account, the bank itself can step in and reverse the charges. If someone manages to drain your Bitcoin account, hope you didn't need that money for anything. While I will be the first one to talk about moral hazard, the fact is that the banks are heavily insured by the government so unlike a cryptocurrency exchange, if you put your money into a bank you're basically guaranteed to get it back out.
There's also the issue of the cost of a transfer. Sure, if you are sending money back home to ethiopia, using a wire service is very expensive. Maybe the cost of a Bitcoin transfer makes sense in that sense. But if you are transferring money between people in the same country, I get unlimited instant and free of charge email transfers with my bank account. And I can go to any bank and take out these pieces of paper that you can exchange for goods or services, and not only is the transaction totally anonymous, and there are no transaction fees passing them in between people, but you can use it without any internet access and in fact without any electricity. Pretty cool stuff.
Rather than being a currency, cryptocurrencies have evolved into just a place you park your money hoping that more people will park their money there so that you can get more money for your money later, and more people stop buying in, then there is no utility in the thing that you've purchased. That's pretty much the definition of a Ponzi scheme.
You can never see what the future brings, so maybe at the end of the day I turn out to be wrong, but simply based on the facts of what we have right now, the only thing Banks might be concerned about with Bitcoin is the fact that so many people are going to lose so much money when the inevitable finally happens.
squashkin@wolfballs.com 2 years ago
there's plenty that can be bought with crypto and it is legal tender for example in el salvador I think
store of value fluctuations are short term in the comparison offered, if the dollar has gone down 1% annually it has gone down -10%+ in a decade while bitcoin has gone up like +1000%
losing money without refund can also be done with paper currency like if you had bills in a wallet and lost the wallet
masterofballs@wolfballs.com 2 years ago
You don't understand.
That is exactly how the federal reserve works. Our current monetization strategy is a big Ponzi Scheme. That is why inflation happens every year.
Bitcoin completely automates the banks so they are no longer needed.