Crypto! Skip Fires*, Scandals and Scams

[stowie]

It still has its pyramid nature. Without state backing sentiment means its value can vanish overnight, even without the administrators filling their boots.

Currencies even with state backing sentiment can vanish to zero - just ask a South American country!

The backing of Bitcoin is in the blockchain security it employs that has proven itself resilient over the years. Plus the resilient nature of the coin generation.

Bitcoin has been around long enough with a wide enough base of coin holders for the standard crypto pump-and-dump scheme to be difficult, if not impossible, to instigate.

The fundamental problem with Bitcoin is as @C R says. It is a function looking for a utility. Transaction speeds are too slow for it to be a useful everyday method of exchange. The lower cost of tranmission and exchange of funds (between "real" currencies) should be a winner, but the lack of security of exchanges plus the highly fluctuating currency prices makes it a niche activity at best. What is left are the hard-core Bitcoin enthusiasts for whom the principle of decentralised currency is enough to invest, and speculators who can see that wildly fluctuating exchange rates mean money can be made (or lost) quickly. In most standard currencies, speculation is a huge activity but typically dwarfed by the non-speculative exchange and use of the currency. There are exceptions - George Soros (and others) helped push GBP out of the ERM, although it is fair to say that would have happened anyway at some stage and was just a question of timing.

 

[matticus]

Currencies even with state backing sentiment can vanish to zero - just ask a South American country!

Which is why I'd rather have savings in US Dollars than in most 3rd world currencies. Wouldn't you?

 

[albion]

Currencies still need backbone.

 

[BoldonLad]

Currencies even with state backing sentiment can vanish to zero - just ask a South American country!

The backing of Bitcoin is in the blockchain security it employs that has proven itself resilient over the years. Plus the resilient nature of the coin generation.

Bitcoin has been around long enough with a wide enough base of coin holders for the standard crypto pump-and-dump scheme to be difficult, if not impossible, to instigate.

The fundamental problem with Bitcoin is as @C R says. It is a function looking for a utility. Transaction speeds are too slow for it to be a useful everyday method of exchange. The lower cost of tranmission and exchange of funds (between "real" currencies) should be a winner, but the lack of security of exchanges plus the highly fluctuating currency prices makes it a niche activity at best. What is left are the hard-core Bitcoin enthusiasts for whom the principle of decentralised currency is enough to invest, and speculators who can see that wildly fluctuating exchange rates mean money can be made (or lost) quickly. In most standard currencies, speculation is a huge activity but typically dwarfed by the non-speculative exchange and use of the currency. There are exceptions - George Soros (and others) helped push GBP out of the ERM, although it is fair to say that would have happened anyway at some stage and was just a question of timing.

Well, quite, but, some are more "at risk" than others.

 

[stowie]

Which is why I'd rather have savings in US Dollars than in most 3rd world currencies. Wouldn't you?

Well, quite, but, some are more "at risk" than others.

Absolutely. An even cursory glance at the Bitcoin exchange rates indicates it isn't where stability will be found.

I might choose to store savings in a currency in which I expect to spend it - the problem with bitcoin is that there isn't a lot to spend it on, so Bitcoin needs to get exchanged into something else to have utility. It might not always be this way. Bitcoin, or another Crypto currency which doesn't have the transaction delay issues, may get informally adopted enough in the "real world" to be of utility and that would be a powerful thing. I might be able to transfer savings into Bitcoin and then spend - without exchange rate fluctuations - this Bitcoin directly for goods and services in, say, Brazil, UK, US and Ghana. I would be first to admit that this is a very long way off with the current state of Crypto...

Currencies still need backbone.

Most currencies these days are backed only by the trust users of the currency bestow upon the governments and central banks that create and manage the currency. Bitcoin backbone is based upon the algorithmic introduction of new coins, and the security of currency. It has actually been a pretty interesting and successful experiment in how resilient blockchain is to attack. With the high value of Bitcoin and the fact it "resides" in the wild west of almost no rules finance, it must be subject to many attempted hacks. And yet the blockchain integrity has remained intact.

Even currencies backed by something such as gold have a backbone that is less strong than might be supposed. Spanish currency went into freefall with high inflation in the 17th Century when boat loads of gold was being shipped in from the New World.

 

[Beebo]

I can’t condone this sort of thing, but it made me chuckle. Very Alan Partridge.
I’m sure he’s a lovely chap, he just needs two positives.

https://www.leeds-live.co.uk/news/l...n=continue_reading_button#amp-readmore-target

 

[matticus]

I can’t condone this sort of thing, but it made me chuckle. Very Alan Partridge.
I’m sure he’s a lovely chap, he just needs two positives.

https://www.leeds-live.co.uk/news/l...n=continue_reading_button#amp-readmore-target

<snort>

We should start a thread with this title:
"I can’t condone this sort of thing, but ..."

I already have a candidate ...

 

[AuroraSaab]

For someone who says he is worth £100 million he doesn't seem that smart.

'I thought it would come off in the car wash'
'I'd like the person who did it to come forward'

Zero chance of either.

 

[Rusty Nails]

Never mind,he's not going to let it phase him.


Although tbf that's more down to the local news website's sloppy journalism than him.

 

[albion]

https://www.theguardian.com/politic...parliamentary-groups-appears-to-have-vanished

Now you see it now you don't. A pyramid scheme, and then they also disappear with the money. Double booty, though likely the money probably disappeared on day 1 for investors.

 

[fozy tornip]

Skip Fires*, Scandals and Scams

Macy Gray on the comeback trail?

 

[Beebo]

https://www.theguardian.com/politic...parliamentary-groups-appears-to-have-vanished

Now you see it now you don't. A pyramid scheme, and then they also disappear with the money. Double booty, though likely the money probably disappeared on day 1 for investors.

“Dan”, released a message on an internet forum in October last year saying that around 1,000 investors had made positive returns totalling around $57m, while around 7,400 were in the red to the tune of $87m.

Pyramid scheme?
Surely not!

 

[C R]

NFTs are worthless

https://petapixel.com/2023/09/20/95-of-nfts-are-worthless-report/

Whoda thunk it.

 

[Beebo]

NFTs are worthless

https://petapixel.com/2023/09/20/95-of-nfts-are-worthless-report/

Whoda thunk it.

The fella who bought the first tweet for $2.9million had it valued recently at just under $4.
Hilarious. I think I’d buy it for $4.

 

[matticus]

The fella who bought the first tweet for $2.9million had it valued recently at just under $4.
Hilarious. I think I’d buy it for $4.

Could one buy Twitter for that, currently?