I as many was initially reluctant to dip into BTC. Then I saw this series interviewing Michael Saylor CEO of MicroStrategy and I completely changed my view. It's long and took my a week to finish. But the historical perspective he provides is hard to deny.
https://youtube.com/playlist?list=PL...fnrnIlqMcSHd6X
Oh, he just wrote me a check. No issues there. This is just the first time anyone offered to pay with crypto. I'd never considered it until now. I treat it purely asa gamblean investment, despite its ostensible use as a medium of exchange. Besides some extra steps converting to fiat and explaining it to my tax guy, there's really no other reason I couldn't have accepted it.
Here's how a couple of people I know that accept crypto do it.Originally Posted by Darth_Uno
Back when paper credit was a new thing it was standard to have a discount rate for paper versus gold, which varied a lot depending on how various wars were going.
They charge a variable discount rate for crypto based on which coin, current market volatility, and most importantly how bad they want that job. So anywhere from 2% to 50%. It gives them another tool for sky bidding jobs when they're too busy without putting out outrageous USD bids and losing business later. They gain a lot of business just by word of mouth that they accept crypto.
So they've been bit a few times but overall it's been very profitable for them. One of them keeps a 'shady' list and won't accept crypto that gets used too often in illegal transactions.
I still don't get it , but it's worth US dollars which I definitely understand. Doesn't matter what it's worth, or backed by. I only care if I can sell it to someone else for more than I paid.
In all seriousness, why don't you think some form of crypto, especially one that is setup like bitcoin, can function as currency?
I think the biggest current barrier is the fact that transactions don't instantly clear, so market volatility can affect a payout. I think there's a company in South America trying to build on top of block chain to instantly clear transactions.
Using cryptography for transactions rather than the current payment networks could create huge consumer surplus. The Treasury Department could do this with digital dollars and eliminate the existing transactions costs that we all currently deal with (usually around 3%). The downside to Treasury doing it is that it's still fiat currency, so our government can still make us all poorer by making more dollars to pay off US debt or engage in Keynesian velocity nonsense.
Bitcoin's proof of work model still seems like the best way to create a currency if our government isn't willing to engage in self-restraint by pegging our currency to some standard.
Apple: oranges. Fundamentally crypto cannot function as a currency because a)transaction time and costs are far too high to make regular exchange of crypto feasible and 2) because it is not fiat backed by central bank nor something with intrinsic value (precious metals, gems, in theory stocks, commodities, etc). As a result, the $1 BTC that bought you a coffee in 2010 is now worth like 4 years of private school tuition. Even at present massive swings in crypto values mean that it is not a practical means of transaction. Its biggest benefit is anonymity which is useful for illegal transactions but little else. Thus 100% of the value is based on speculation, which makes it a speculative investment. Speculative investment are speculative. Invest accordingly.
E.g. https://screenrant.com/the-comicspec...ble-explained/
Yet, while I haven’t looked into what all is being developed in the crypto world this podcast is worth a listen to see where developers are trying to take it.
https://palladiummag.com/2021/04/24/...ats-the-world/
ETA: I think we’ll see a transition period in the next decade where secondary economies begin to develop around crypto currencies. I don’t know where that will leave fiat money, but I do think we’re in for some societal changes.
Last edited by Caballoflaco; 10-21-2021 at 05:52 PM.
Exactly. For years, unless you cared to trade chickens for other goods, the dollar was the only way to get what you wanted. Now you don't need a dollar; you can also pay with any available cryptocurrency. Apparently you can buy a 60k remodel job with Litecoin, anyway.
Of course crypto isn't backed with anything besides its perceived value relative to the dollar, which could be substantial...or nothing at all. To be frank, and I'd suspect most 'investors' fall into this category, I don't want $60,000 worth of Litecoin - I want enough Litecoin where I can cash it out for $60,000.
Do some reading on aave, there’s already a more advanced underground economy slowly emerging that is way more than just “I buy bitcoin and make money”.
https://www.kraken.com/en-us/learn/what-is-aave-lend
Also; did people here forget that El Salvadore recently adopted bit coin as a currency and you can now go to the store there and get some pupasas and a coke and they have to accept bitcoin?One of a number of emerging DeFi cryptocurrencies, Aave is a decentralized lending system that allows users to lend, borrow and earn interest on crypto assets, all without middlemen.
Running on the Ethereum blockchain, Aave instead is a system of smart contracts that enables these assets to be managed by a distributed network of computers running its software.
This means Aave users do not need to trust a particular institution or person to manage their funds. They need only trust that its code will execute as written.
At its core, the Aave software enables the creation of lending pools that enable users to lend or borrow 17 different cryptocurrencies including ETH, BAT and MANA.
Like other decentralized lending systems on Ethereum, Aave borrowers must post collateral before they can borrow. Further, they can only borrow up to the value of the collateral they post.
Borrowers receive funds in the form of a special token known as an aToken, which is pegged to the value of another asset. This token is then encoded so lenders receive interest on deposits
A borrower may post collateral in DAI, for example, and borrow in ETH. This allows a borrower to gain exposure to different cryptocurrencies without owning them outright.
Aave can also introduce additional features, such as instant loans, and other forms of issuing debt and credit that take advantage of the unique design properties of blockchains.
Last edited by Caballoflaco; 10-21-2021 at 07:01 PM.
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