Have any of you guys heard about this coin called USD? I hear that there is an unlimited amount of it and that they are actually making about 80 billion new ones every month. I also understand that it is backed up by nothing. It is controlled by an international banking cartel that has a core policy to make this USD coin worth at least 2% less every single year in the amount of goods and services that it can be exchanged for. It is primarily digital and you can actually have your own personal wallet at any one of what they call "banks" that follow the rules of this banking cartel. Your digital USD coins are sorta safe in these "bank wallets" but they will transfer your USD coins to any other wallet if they come and ask for it. They just assumed that you authorized utility companies and other lenders to come and get whatever amounts they want. They freely give out all the information that anyone needs to come get your USD coins on the bottom of what they call "checks" Now this sounds too good to pass up. What do you think? Should I exchange all my bitcoins for this USD coin? I am kinda frustrated with my Bitcoins anyway as this year as their value only increased from 900 of the USD coins to 4,400 as of right now.
No, but if you wish to purchase valuable/useful/essential goods and services you may have to exchange some of them. AFAIK, the digital and physical USD coins are legal tender whilst bitcoins are not.
Also some of the 'bank wallets' will pay you something called interest if leave the USD coins in there for a specified period.
I've also heard that the value of the USD won't fluctuate so much that I have to worry about my purchasing power tomorrow or if that thing called a bank is hacked/bankrupt I still have some recourse to get my asset back.
I'll give my bullet point summary of this coin: Benefits: * it's been around for a while, wide use, and massive market cap * anyone can mine / approve transactions * because transaction approval is only shared with peered nodes in the network, there's very little network overhead (a complete ledger is not globally shared across the network) * because transaction approval is only shared with peer nodes, it's possible to complete transactions with 100% anonymity Downsides: * because of the lack of a complete ledger, it is theoretically possible to create transactions with forged coins * number of peers is not evenly distributed -- there are some nodes with substantially greater number of peers and as such more ability to approve transactions and access to ledger data. Because of their disproportionate influence in the network, they're also able to exploit this influence to reverse transactions and even remove coins from your wallet without your approval * centralized - single point of failure and control (I've heard the creators of this coin have even worked with local governments to delete coins from peoples wallets!) * a substantial amount of the coins were pre-mined * even though anyone can mine / approve transactions, only the creators of the coin are able to get block rewards for mining * the amount the creators mine in the future is up to them without any approval process from the users in the network
This part is very interesting to me. Aside from the fact that the premise of the original post is a joke, you would assume that with the FED creating all this money out of thin air would have a negative impact on the USD. The size of the debt should be a problem, but the way the markets are reacting, it isn't. In a way, I do think there are built in approval processes when it comes to the USD. Its free floating after all, and the value can fluctuate based on many factors. This is a good. But how its maintaining its high value is a surprise. I would in no way ever bet against the USD, given the full backing of the US economy and military, which is a heck of a whole lot better than the backing of bitcoin, which is just a bunch of traders quickly flipping it, but I would also expect that in this environment, it shouldn't be as strong as it is.
While the creators of the coin are mining more, thus far they've kept it at a rate that's low enough that the holders of the coin don't mind as its benefits outweigh this particular negative. The creators of this coin aren't stupid. They understand that if they created too much, too quickly, that its users would see them as scammers and jump to another coin. As such, as long as they don't get too greedy in the short term, they're likely to keep the mining relatively low because it's better for them in the long term to not piss off their user base. As far as how it can maintain or increase in value relative to other coins even though they're creating more -- think of it in terms of the share price of a company. Any company will have both positive and negative aspects. (I suspect it'd be difficult to find a company that has absolutely no downsides.) Even with those negatives, the share price can continue to climb. Would it climb further or faster if it had fewer negative aspects? I suspect it would.