Ontario's Crypto King arrested

Discussion in 'Crypto Assets' started by Pekelo, May 17, 2024.

  1. mervyn

    mervyn

    no, modern fiat is backed by a sovereign's ability to collect taxes from its subjects. crypto is some meaningless bits (not even useful information) on the computer screen, quoted by fiat.
     
    #11     May 17, 2024
    orbit23 and engineering like this.
  2. How meaningful is the Venezuela dollar? Lol
     
    #12     May 18, 2024
  3. mervyn

    mervyn

    it is as meaningful as us dollar or japanese yen, their government can collect taxes from the oil exports and other sources.
     
    #13     May 18, 2024
  4. I meant El Salvador
     
    #14     May 18, 2024
  5. mervyn

    mervyn

    you are implying something in marcoeconmics but not crypto. if el salvadorans couldn't afford much of the luxury, where they get the money to trade crypto? or upgrade computers, internets, etc.

    https://www.science.org/doi/10.1126/science.add2844

    We found that bitcoin was not widely used as a medium of exchange and usage of Chivo Wallet was low. Most downloads took place just as the app was launched. Since then, adoption and remittances using Chivo Wallet have been decreasing over time. These results suggest that it is unlikely that the usage of bitcoin and Chivo Wallet will increase.
     
    #15     May 18, 2024
  6. I will never invest in crypto. It's not fiat currency. It's too volatile. I've been burned badly after buying crypto miners that malfunctioned and I couldn't get a refund.
     
    #16     May 19, 2024
  7. A comparison...

    Fiat
    - backed by sovereign
    - depreciates due to inflation
    - can rapidly devalue / cease to exist
    - relative value depends on macro & geopolitical conditions of the country

    Equities
    - denominated in fiat
    - produce value (goods / services), also denominated in fiat
    - typically can pass inflation through to customers
    - generally returns are in excess of GDP of country (obviously this varies dramatically depending on the equity; just think of S&P 500 here)

    Gold
    - limited supply
    - store of value
    - not a productive asset
    - beats inflation over very long periods (eg: 50-100 years)
    - can be volatile over short periods (eg: months to years)

    Bitcoin
    - limited supply
    - store of value (?) - TBD
    - could rapidly devalue / cease to exist (?) - TBD
    - not a productive asset
    - has been extremely volatile over very short periods
    - cyclical

    Trading
    - can gain or lose independent of macro / geopolitical
    - can be very lucrative
    - can require more time for research and/or execusion
    - not everyone is successful


    Which do I do? All of the above. (Plus more.) It's all about asset allocation. Nobody has a crystal ball. Assign likelihoods to possible future scenarios and allocate assets appropriately.

    Some people want to allocate so they hit a home run in one scenario (that they believe in) and they are willing to strike out in another (that they don't think will happen).

    I prefer to allocate so that I'm going to do well no matter what... even if the truly unexpected (for me) happens, I'll still do well... and I do exceptionally well if my expectations come to pass.
     
    #17     May 19, 2024
    maxinger likes this.
  8. maxinger

    maxinger



    Please also include
    Cryptocurrency
    - unlimited / infinite supply
     
    #18     May 19, 2024
    Statistical Trader likes this.
  9. traderjo

    traderjo

    Crypto may not be fraud but loose regulations makes it a attractive proposition for crooks
     
    #19     May 20, 2024
  10. orbit23

    orbit23

    The entire crypto industry is a scam. Selling the dream of getting rich quick is all it is.
     
    #20     May 20, 2024