Virtual Currency

As a CPA, I've encountered a new question on the personal income tax form What exactly is Bitcoin and has anyone heard of the impending "Fedcoin?"

 

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They're both cryptocurrencies.

 

Cryptocurrency, Here we go again with another intangible asset not for the average American dreamer!

 

Bitcoin is a mechanism by which wealth is transferred from late entrants to early entrants. That is, it's a pyramid scheme, like Ponzi, [monetary] chain letters, or fraudulent multi-level marketing. The beauty is its efficiency: no middle-man; late comers send their real money [dollars] directly to the early "investors". It is also the best way to make illegal money transfers.

 

I just read an article this AM that the Swiss banks are advising their clients to AVOID all Bit coin and other Crypto coins.
Stay safe

 

Finally, I have been wondering what Bitcoin is. "Ponzi", huh, Anyone know if anyone has gone to jail yet?

 

cryptocurrencies

 

Not even remotely close to accurate.

 

You're very uinlikely to get actual answers in this thread or really even on a coin site. Too many people chirp in with their incorrect ignorant opinions stating things as facts which aren't even close to true just because they don't like it. There's a ton of real information out there on what it is if someone is interested in learning. It's becoming more and more accepted including by Tesla, banks, bullion dealers, businesses, paypal. etc etc. They wouldn't be involved in a "Ponzi" scheme and anyone that calls it one has no idea what they're talking about.

 

Banks, businesses and other "big money" people were into Credit Default Swaps and other derivates big time in 2007-2008. That worked out well. ["Big Money" was probably even into the tulip bubble, given the stories of a whole house being traded for one bulb.] As I said, the beauty of bitcoin is that there is no middleman, no Ponzi, so no one is going to jail. It's not a Ponzi scheme; it just has the same result as a Ponzi scheme: transfer of wealth [on average] from late "investors" to early "investors".

Bitcoin may eventually be useable as money, but unlikely. Money generally is ascribed three uses: 1) medium of exchange; OK, if you want to buy drugs, pay a ransom, or buy a Tesla, you can use it. 2) store of value; OK, if you buy at the right time, you can protect your wealth, but the same can be said of any security, even Gamestop stock. 3) unit of accounting; I haven't heard of any financial entity doing their books in bitcoin. If a major corporation does a big bond issue in bitcoin, I'll change my mind.

 

No it doesn’t. It's not going to become true either by just repeating it over and over and over again in every bitcoin thread.

It already is and has been for a while..........

It's pretty clear you don't really have a very good understanding of it and seem to think it's some anonymous drug kingpin medium, it's none of those.

 

It seems there is a difference of opinions.

 

IMHO it is just copying what the governments of the world are presently doing by creating money out of thin air - in essence a lot like paper money.

"Cryptocurrency eventually returns to its intrinsic value: zero."
Voltaire

 

Best Answer, thanks Harry.

 

I know very little about cryptocurrency and at my age I don't want to get that interested. I just have 2 questions.
1) If I had bitcoin where would I go to convert it to US Currency?
2) Where can I spend bitcoin?

 

It's not really a matter of opinion, some people have an understanding of it and some people dont and just say stuff to say stuff. Go look at the bitcoin thread, you can see people saying the same exact things several years ago yet theyve been wrong every single time

 

I put in $950 in a diverse set of smaller cryptocurrencies and plan to hold for a year just to see what happen. I’ve earmarked it as gambling money, and I won’t put any more in. I’ve been everywhere from -$85 to +$400. I’m sitting at +$90 right now.

 

Seems the Chinese are one up on us, again
https://www.cnbc.com/2021/02/27/op-...he-us-and-its-allies-keep-china-in-check.html

 

See my link on post #18

 

I'd add one more question:
3) If I had bitcoin, how could I access it during an EMP or a rolling blackout? What if everything went down for days or even weeks at a time (see: TEXAS)?

At least with currency, even with a blackout I think you'd still be able to go to your local bank and withdraw at least some of it. The banks would have to do everything by hand and enter everything later into their systems, but they'd still have to give you your money. Hopefully.