Normal Island

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C R

C R

Über Member
Normal currency is not a good comparison. You can't use crypto for every day spending because it doesn't work in practice, the transaction is too slow and it costs too much to be practical. A better comparison is stocks. Buying crypto is like buying stock in a company that has no product (think Theranos) but no-one has noticed yet that the company has no product.
 
newfhouse

newfhouse

pleb
matticus said:
IN general, the first few grand is guaranteed by the state. So I'm better investing with regular banks in that sense, no?
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If safety is what motivates you, yes, that’s exactly what I’m saying. There’s still a risk that your state won’t actually be able or choose to honour its guarantee, but in our part of the world it is a small one.
 
stowie

stowie

Active Member
AuroraSaab said:
Thanks for these insights and links, guys. I don't really understand this crypto/NFT stuff but it's interesting to hear about the machinations. The $$$ figures involved are staggering.
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The sums of money are what astound me as well. I have been watching Coffeezilla on YouTube for a while - a good portion of his output is on Crypto scams and the sums are staggering.

The underlying complexity of the technology / algorithms are used to obscure what is usually a pretty straightforward pump-and-dump scheme.
 
A

AuroraSaab

Legendary Member
Yes, it all seems like Emperor's New Clothes stuff to me. But then it attracts big companies and big investors and big names so perhaps you start thinking there must be something in it ..... which is how people get suckered in I suppose.
 
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matticus

matticus

Guru
C R said:
Normal currency is not a good comparison. You can't use crypto for every day spending because it doesn't work in practice, the transaction is too slow and it costs too much to be practical. A better comparison is stocks. Buying crypto is like buying stock in a company that has no product (think Theranos) but no-one has noticed yet that the company has no product.
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That's my favourite analogy on this thread so far!

Basically investors are assuming the directors/marketes of the company are SOOOOO brilliant, they are bound to make money from this scheme in the long run!

Call me odd, but I'd rather invest in brilliant directors/marketers who have actually got some sort of useful product/service to sell ...
 
stowie

stowie

Active Member
Would it be a good idea to create a new thread discussing crypto scandals (FTX, Logan Paul, + many others) plus crypto in general?

I have no massive knowledge of this, but find it fascinating as I think the technology holds a lot of promise, but the actual implementation is typically a total dumpster fire.

Plus it would free up this thread to more Normal Island posts. God knows, that alone is a rich vein of posts currently.
 
A

AuroraSaab

Legendary Member
If one of you guys with more knowledge would be kind enough to start a thread that would be great. I'm very late to the party so a very basic expo of what's thing is what, how it started, who's who and where we are now with it, would be good.
 
winjim

winjim

Welcome yourself into the new modern crisis
stowie said:
Would it be a good idea to create a new thread discussing crypto scandals (FTX, Logan Paul, + many others) plus crypto in general?

I have no massive knowledge of this, but find it fascinating as I think the technology holds a lot of promise, but the actual implementation is typically a total dumpster fire.

Plus it would free up this thread to more Normal Island posts. God knows, that alone is a rich vein of posts currently.
Click to expand...

Skip fire please, we are British after all.
 
BoldonLad

BoldonLad

Old man on a bike. Not a member of a clique.
Location
South Tyneside
newfhouse said:
Just like all money then. What does the number of pounds showing in your online banking app actually mean? I mean obviously governments and central banks agree to underwrite currencies but the value of your account is still dependent on confidence and trust.
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My take exactly, but, totally without any proof...

The topic of Crypto Currencies has been a topic on conversation in my small (6) group of similarly aged drinking Pals, due, totally to recent reports of scams.

To be fair, I think I would be right in saying that not one of us any real knowledge of the subject.

I don't think any of my little group have "dabbled".

Personally, it appears to be a solution, without a problem (rather like "what three words"). It is already possible to pay for goods and services online, anywhere in the world (PayPal, among others), and, to pay money to individuals, similarly. I just don't understand what "crypto currencies" bring to the party, other than the ability to speculate (which again, it is possible to do with money, and look how that has worked out!).

The only difference I can see, between Crypto Currencies and Money, is that the "value" of the tokens is being underwritten by some Organisation other than a State/Country. Whilst I accept that the promises of many States/Countries would not fill me with confidence, I am not sure that I would be any more confident in any Elon Musk type character, or "young entrepreneur" peddling his/her latest offering.

But, given that so may people (including some or my younger relatives) seem to be "dabbling", am I missing a trick here?
 
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The Crofted Crest

The Crofted Crest

Active Member
So close to the truth it's believable.

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