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<p>[QUOTE="EdThelorax, post: 3717090, member: 99854"]There is nothing backing any crypto.</p><p><br /></p><p>I believe the technology would have value if there were real world, widely accepted uses. I haven't seen any yet. Crypto today is similar to the advent of the internet where there were start-ups valued in the billions without any revenue.</p><p><br /></p><p><br /></p><p>One definition of money is:</p><p>Anything of value that serves as a (1) generally accepted medium of financial exchange, (2) legal tender for repayment of debt, (3) standard of value, (4) unit of accounting measure, and (5) means to save or store purchasing power. See also cash.</p><p>Read more: <a href="http://www.businessdictionary.com/definition/money.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.businessdictionary.com/definition/money.html" rel="nofollow">http://www.businessdictionary.com/definition/money.html</a></p><p><br /></p><p>Some say that the strength of the US military or it's ability to tax it's</p><p>citizens is what gives value to the US Dollar. I have never heard of anyone having to use force to make someone take their dollars. What gives it value is mandate. It is declared legal tender. Anything that the authorities demand "legal tender" would satisfy 1,2,4.</p><p>Gold worked very well for thousands of years as money because it was quantifiable and standardized which satisfies 3. The limited supply of gold prevents unbridaled and unlimited increase of the money supply and is no one else's liability which satisfies 5.</p><p><br /></p><p>There are only 2 possibilities for the future of the current debt-based system. Inflate to infinity or massive unimaginable defaults. The US and therefore the world almost saw the latter in 2008. "Too big to fail" was referring to the whole economic system. The Abyss is the domino effect of the realization that there is only a fraction of the money that people are purported to have and that there is no way possible that all of the debt can ever be repaid. If I have $10 and loan it to Joe, we do NOT all of the sudden have $20 between us. So I only loan it if the risk of him not repaying me is less than the interest I charge.The inflate to infinity choice requires more and more debt to generate the increase of the money supply. Because the rate at which the debt must increase is parabolic, there has to be continuingly more lax lending standards which just moves everything close to the edge of that abyss.</p><p><br /></p><p>Crypto can easily satisfy all 5 of the above requirements of money with nothing more than government making one crypto the new legal tender. If the cumulative interest charged is less than the growth of the crypto then as long as those making loans go back to only loaning to worthy parties, then there will be limited defaults and enough currency to cover all principal plus interest. Of course that would mean that most entities would have to go back to actually being able to afford the things they purchase.</p><p><br /></p><p>When we have fallen into the black hole of spiraling defaults there will be an alternative accounting methodology waiting, it will be some form of digital currency. It will be based on all the work that has been going into blockchain. It won't be Bitcoin, or any other current crypto. It will be an un immutable leger system where ever single transaction will be recorded and stored. It will be world wide, and those with real money will be able to lock in the "wealth" they amassed with the current fiat system.</p><p><br /></p><p>Until then, I am going to take the opportunities in this new fad to make profits and convert them to physical silver. Dot com, Bennie Babies, brand new quarters for 4000$, baseball cards, multi million dollar condos, tulips, bonds from a country 23 trillion in debt, Enron, a 1913 nickle costing 3+ mil., Bear Sterns or cow poop, there are always things that can be traded to make good money.[/QUOTE]</p><p><br /></p>
[QUOTE="EdThelorax, post: 3717090, member: 99854"]There is nothing backing any crypto. I believe the technology would have value if there were real world, widely accepted uses. I haven't seen any yet. Crypto today is similar to the advent of the internet where there were start-ups valued in the billions without any revenue. One definition of money is: Anything of value that serves as a (1) generally accepted medium of financial exchange, (2) legal tender for repayment of debt, (3) standard of value, (4) unit of accounting measure, and (5) means to save or store purchasing power. See also cash. Read more: [URL]http://www.businessdictionary.com/definition/money.html[/URL] Some say that the strength of the US military or it's ability to tax it's citizens is what gives value to the US Dollar. I have never heard of anyone having to use force to make someone take their dollars. What gives it value is mandate. It is declared legal tender. Anything that the authorities demand "legal tender" would satisfy 1,2,4. Gold worked very well for thousands of years as money because it was quantifiable and standardized which satisfies 3. The limited supply of gold prevents unbridaled and unlimited increase of the money supply and is no one else's liability which satisfies 5. There are only 2 possibilities for the future of the current debt-based system. Inflate to infinity or massive unimaginable defaults. The US and therefore the world almost saw the latter in 2008. "Too big to fail" was referring to the whole economic system. The Abyss is the domino effect of the realization that there is only a fraction of the money that people are purported to have and that there is no way possible that all of the debt can ever be repaid. If I have $10 and loan it to Joe, we do NOT all of the sudden have $20 between us. So I only loan it if the risk of him not repaying me is less than the interest I charge.The inflate to infinity choice requires more and more debt to generate the increase of the money supply. Because the rate at which the debt must increase is parabolic, there has to be continuingly more lax lending standards which just moves everything close to the edge of that abyss. Crypto can easily satisfy all 5 of the above requirements of money with nothing more than government making one crypto the new legal tender. If the cumulative interest charged is less than the growth of the crypto then as long as those making loans go back to only loaning to worthy parties, then there will be limited defaults and enough currency to cover all principal plus interest. Of course that would mean that most entities would have to go back to actually being able to afford the things they purchase. When we have fallen into the black hole of spiraling defaults there will be an alternative accounting methodology waiting, it will be some form of digital currency. It will be based on all the work that has been going into blockchain. It won't be Bitcoin, or any other current crypto. It will be an un immutable leger system where ever single transaction will be recorded and stored. It will be world wide, and those with real money will be able to lock in the "wealth" they amassed with the current fiat system. Until then, I am going to take the opportunities in this new fad to make profits and convert them to physical silver. Dot com, Bennie Babies, brand new quarters for 4000$, baseball cards, multi million dollar condos, tulips, bonds from a country 23 trillion in debt, Enron, a 1913 nickle costing 3+ mil., Bear Sterns or cow poop, there are always things that can be traded to make good money.[/QUOTE]
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