Crypto-Currency the legal pyramid scheme?

I have no clue about crytpo markets and trading but isn't the idea of using blockchain to exchange value fundamentally no different than using US Dollars? Well, except the current lack of regulation as you pointed out? I suspect the purists would argue that if/when blockchain is widely adopted and perfected for this use there would be no need for regulation. Global free trade with a single currency. A wild idea to be sure.

If you separate the investing side from the "using it as a currency" side I don't think it's at all naive to compare crypto currency to the $'s you see on a screen sitting in your bank account. There's no gold out there backing our savings...only a Governments promise to pay backed by our hope that they (our GOVT) remains solvent.

 

No, what backs our dollar is 300 some millions American taxpayers and a trillion dollar economy. There is nothing like that to back up crypto.

 

Maybe I place more trust in our G7 governments than I do in some shady nebulous crypto currency guy. But that's just me. US dollars and Canadian dollars are backed by the entire country in a sense. You would never see the USD plummet in value like Cryptos have recently. Maybe I am "old school", but I like my currency to not be a volatile unregulated, unbacked "thing".

 

I get what you're saying and I'm not trying to stick up for crypto. I already said I look at it like gambling.
ETH was $123.00 in March of 2020 and it was $4,626.00 in November of 2021. You'll never see the USD do that either.

 

That’s exactly what it is. Gambling on musical chairs. And the house always wins. The house is the ICO founder. They win and then are out but continue to make money on the game after the big score on the ICO.

 

Fortune favors the bold.
-Matt Damon

Bankruprcy favors the stupid
-Me

I was told when I first started investing, "If you can't explain simply what makes somthing go up and down in value, you have no business investing in it'

 

The closest I get to Bitcoin is the spam email from some Jamoke who said he hacked my computer, and will delete everything off I don’t pay him $977 in Bitcoin. Makes me laugh cause he says he has watched me on my webcam and has blackmail videos of me. The problem is I do not have any webcams or microphones on my CPU…

 

The issues I see with having a blockchain for currency exchange is that the way using more and more computational power to include each transaction into the blockchain. The math will take more and more power/energy, and with that becomes cost. Some of the cryptos are trying to deal with this already, but as energy costs go up, this will put an end to it IMO. It will cost too much for the transaction to "include" it in the blockchain.

Also, it won't be secure at some point as computing power makes it possible to undo the math and hack the blockchain...

 

I bought high, and will probably sell low, that’s how I roll!

 

A guys got to protect his money. My Uncle put his in big glass jars and buried it here and there, said no one but him would be able to find it, hid it real good....he died in '85, he didn't take it with him, but kinda.

 

Reminds me that when I was a kid of about 12, we were constantly playing out in the woods around our place. Building forts, that kind of thing. We came across what looked like an old hunt cabin or maybe small house in the middle of nowhere. In the ruins was a nasty old hair and grass mattress. And some old bills were showing. They were very old “Dominion of Canada” bills from the late 1800s. That guy didn’t take it with him either.

 

Wouldn't you just love to know the whole history of that scene?

 

Thanks for saying this as I wasn’t able to come up with a collegial wording .

 

Hi! Cryptocurrencies have nothing to do with financial pyramids. Cryptocurrency is a digital asset with no physical embodiment and a single center that would control it. Depending on the type of electronic money, the cryptocurrency accounting unit can be either a "coin" or a "token." You can quickly get cryptocurrencies on sites like moonbitcoins.com or invest in cryptocurrencies and crypto exchanges. But this is a legal way to invest in the future.