You are the one that said we don’t have it under control and we shouldn’t desire that it should be under control.
I’m having difficulty understanding the value proposition of the Fed here under those guidelines.
Well, you might prefer to have lived in the USSR. The Fed does try to nudge things along in the then preferred direction, but the economy is (thankfully) quite dynamic.
He supports Bitcoin. Derek, can you help me understand what he means by "proof of work" and how this differentiates Bitcoin from the other cryptos?
He would be able to describe much better than I. I basically understand it but struggle to describe precisely. But I can give the basics. There are about 20,000 cryptos and they are all securities. They have a centralized group that issues the tokens and controls the protocols. If they want to issue more tokens in the same way the The Fed creates more dollars out of thin air, they are able to do so. They are under severe attack from the US government. But Bitcoin has been designated by the IRS as a commodity. There is no entity controlling Bitcoin. It is literally considered to be property in the USA. In El Salvador it is currency, but that's a different conversation.
In proof of work, the miners secure and verify the blockchain around the world and they compete to solve a math puzzle. These are ongoing. The winner gets to update the blockchain with the latest verified transactions. It gets rewarded with XX amount of Bitcoin. They are mining new coins.
The mining undergoes halvings every four years. From memory I think that 6.5 bitcoin are mined every day currently. About a year from now it will cut in half to 3.25 per day. This will go on every four years until the year 2140 when the final Bitcoin will be mined. It is specifically designed to be a digital scarcity, unlike gold and silver which are mined constantly and adding to the global supply, as well as fiat dollars which of course are always expanding and devaluing the worth of our dollars.
In the end there will be 21 million Bitcoin in circulation. There will never be more than 21 million. Nobody on earth has the power to alter this.
"Proof of stake" to my understanding is that it simply takes putting up crypto as collateral to secure a transaction on the Blockchain. Proof of work means Bitcoin is a beast that has one foot in the digital world and one foot in the physical world, to borrow from a Bitcoin writer named Gigi. There is real world physical energy backing Bitcoin transactions.
The Biden admin has shown itself to be hostile to Bitcoin but they will never be able to kill it. They are currently successful in driving Bitcoin entrepreneurs overseas to friendlier nations. The other day I heard that many American entrepreneurs are relocating to the UK and El Salvador to pursue their new businesses because the USA has become hostile since Biden came into office.
Hopefully the above explanation is somewhat clear.
So, assuming that the world's gold supply is 190,040 tonnes and 3,000 new tonnes of gold are mined a year that's a 1.6% increase. So if world GDP growth is 3% then the gold supply will be below world economic growth and gold will remain a rare commodity. That's Bitcoins selling point. Still easier to stop Bitcoin than gold however. The crypto that is based on non-fungible tokens (NFTs) like a digital picture of Justin Bieber are pure crap and are like the Dutch tulip bulb mania.
Sure, but gold has a use in manufacturing etc... Bitcoin doesn't.
Just another issue for gold greater than Bitcoin.
If you wanted to move $10,000 worth of gold from Seattle to Miami, there's a cost to that. If you want to move $10 million worth of gold from Houston to Tokyo, that will cost you tens of thousands of dollars at least. With Bitcoin, you can send $10 million from New York to Paris in just a few minutes for a small cost via the Lightning network. AND do it instantly with final settlement.
Also as we've seen with every country on earth including the USA (in 1933), the government can outlaw and seize your gold whenever they wish. With Bitcoin, you can self-custody with multi-sig setup and the government can't take it from you unless they put you in jail and sweat it out of you.
And try taking a gold brick with you through airport security. They will confiscate it and never give it back, even though it's your asset!
He supports Bitcoin. Derek, can you help me understand what he means by "proof of work" and how this differentiates Bitcoin from the other cryptos?
He would be able to describe much better than I. I basically understand it but struggle to describe precisely. But I can give the basics. There are about 20,000 cryptos and they are all securities. They have a centralized group that issues the tokens and controls the protocols. If they want to issue more tokens in the same way the The Fed creates more dollars out of thin air, they are able to do so. They are under severe attack from the US government. But Bitcoin has been designated by the IRS as a commodity. There is no entity controlling Bitcoin. It is literally considered to be property in the USA. In El Salvador it is currency, but that's a different conversation.
In proof of work, the miners secure and verify the blockchain around the world and they compete to solve a math puzzle. These are ongoing. The winner gets to update the blockchain with the latest verified transactions. It gets rewarded with XX amount of Bitcoin. They are mining new coins.
The mining undergoes halvings every four years. From memory I think that 6.5 bitcoin are mined every day currently. About a year from now it will cut in half to 3.25 per day. This will go on every four years until the year 2140 when the final Bitcoin will be mined. It is specifically designed to be a digital scarcity, unlike gold and silver which are mined constantly and adding to the global supply, as well as fiat dollars which of course are always expanding and devaluing the worth of our dollars.
In the end there will be 21 million Bitcoin in circulation. There will never be more than 21 million. Nobody on earth has the power to alter this.
"Proof of stake" to my understanding is that it simply takes putting up crypto as collateral to secure a transaction on the Blockchain. Proof of work means Bitcoin is a beast that has one foot in the digital world and one foot in the physical world, to borrow from a Bitcoin writer named Gigi. There is real world physical energy backing Bitcoin transactions.
The Biden admin has shown itself to be hostile to Bitcoin but they will never be able to kill it. They are currently successful in driving Bitcoin entrepreneurs overseas to friendlier nations. The other day I heard that many American entrepreneurs are relocating to the UK and El Salvador to pursue their new businesses because the USA has become hostile since Biden came into office.
Hopefully the above explanation is somewhat clear.
I knew you were a crypto supporter, but this is impressive. My peer review says you are quite accurate.
Au contraire my centrist friend. I do not support crypto. I support Bitcoin and the Bitcoin network.
He supports Bitcoin. Derek, can you help me understand what he means by "proof of work" and how this differentiates Bitcoin from the other cryptos?
He would be able to describe much better than I. I basically understand it but struggle to describe precisely. But I can give the basics. There are about 20,000 cryptos and they are all securities. They have a centralized group that issues the tokens and controls the protocols. If they want to issue more tokens in the same way the The Fed creates more dollars out of thin air, they are able to do so. They are under severe attack from the US government. But Bitcoin has been designated by the IRS as a commodity. There is no entity controlling Bitcoin. It is literally considered to be property in the USA. In El Salvador it is currency, but that's a different conversation.
In proof of work, the miners secure and verify the blockchain around the world and they compete to solve a math puzzle. These are ongoing. The winner gets to update the blockchain with the latest verified transactions. It gets rewarded with XX amount of Bitcoin. They are mining new coins.
The mining undergoes halvings every four years. From memory I think that 6.5 bitcoin are mined every day currently. About a year from now it will cut in half to 3.25 per day. This will go on every four years until the year 2140 when the final Bitcoin will be mined. It is specifically designed to be a digital scarcity, unlike gold and silver which are mined constantly and adding to the global supply, as well as fiat dollars which of course are always expanding and devaluing the worth of our dollars.
In the end there will be 21 million Bitcoin in circulation. There will never be more than 21 million. Nobody on earth has the power to alter this.
"Proof of stake" to my understanding is that it simply takes putting up crypto as collateral to secure a transaction on the Blockchain. Proof of work means Bitcoin is a beast that has one foot in the digital world and one foot in the physical world, to borrow from a Bitcoin writer named Gigi. There is real world physical energy backing Bitcoin transactions.
The Biden admin has shown itself to be hostile to Bitcoin but they will never be able to kill it. They are currently successful in driving Bitcoin entrepreneurs overseas to friendlier nations. The other day I heard that many American entrepreneurs are relocating to the UK and El Salvador to pursue their new businesses because the USA has become hostile since Biden came into office.
Hopefully the above explanation is somewhat clear.
So, assuming that the world's gold supply is 190,040 tonnes and 3,000 new tonnes of gold are mined a year that's a 1.6% increase. So if world GDP growth is 3% then the gold supply will be below world economic growth and gold will remain a rare commodity. That's Bitcoins selling point. Still easier to stop Bitcoin than gold however. The crypto that is based on non-fungible tokens (NFTs) like a digital picture of Justin Bieber are pure crap and are like the Dutch tulip bulb mania.
Sure, but gold has a use in manufacturing etc... Bitcoin doesn't.
Just another issue for gold greater than Bitcoin.
If you wanted to move $10,000 worth of gold from Seattle to Miami, there's a cost to that. If you want to move $10 million worth of gold from Houston to Tokyo, that will cost you tens of thousands of dollars at least. With Bitcoin, you can send $10 million from New York to Paris in just a few minutes for a small cost via the Lightning network. AND do it instantly with final settlement.
Also as we've seen with every country on earth including the USA (in 1933), the government can outlaw and seize your gold whenever they wish. With Bitcoin, you can self-custody with multi-sig setup and the government can't take it from you unless they put you in jail and sweat it out of you.
And try taking a gold brick with you through airport security. They will confiscate it and never give it back, even though it's your asset!
Couldn't you just move that gold as cash by selling it? Do people actually have gold bars sitting around when they own gold as an investment? This seems like a fancier version of Western Union.
He supports Bitcoin. Derek, can you help me understand what he means by "proof of work" and how this differentiates Bitcoin from the other cryptos?
He would be able to describe much better than I. I basically understand it but struggle to describe precisely. But I can give the basics. There are about 20,000 cryptos and they are all securities. They have a centralized group that issues the tokens and controls the protocols. If they want to issue more tokens in the same way the The Fed creates more dollars out of thin air, they are able to do so. They are under severe attack from the US government. But Bitcoin has been designated by the IRS as a commodity. There is no entity controlling Bitcoin. It is literally considered to be property in the USA. In El Salvador it is currency, but that's a different conversation.
In proof of work, the miners secure and verify the blockchain around the world and they compete to solve a math puzzle. These are ongoing. The winner gets to update the blockchain with the latest verified transactions. It gets rewarded with XX amount of Bitcoin. They are mining new coins.
The mining undergoes halvings every four years. From memory I think that 6.5 bitcoin are mined every day currently. About a year from now it will cut in half to 3.25 per day. This will go on every four years until the year 2140 when the final Bitcoin will be mined. It is specifically designed to be a digital scarcity, unlike gold and silver which are mined constantly and adding to the global supply, as well as fiat dollars which of course are always expanding and devaluing the worth of our dollars.
In the end there will be 21 million Bitcoin in circulation. There will never be more than 21 million. Nobody on earth has the power to alter this.
"Proof of stake" to my understanding is that it simply takes putting up crypto as collateral to secure a transaction on the Blockchain. Proof of work means Bitcoin is a beast that has one foot in the digital world and one foot in the physical world, to borrow from a Bitcoin writer named Gigi. There is real world physical energy backing Bitcoin transactions.
The Biden admin has shown itself to be hostile to Bitcoin but they will never be able to kill it. They are currently successful in driving Bitcoin entrepreneurs overseas to friendlier nations. The other day I heard that many American entrepreneurs are relocating to the UK and El Salvador to pursue their new businesses because the USA has become hostile since Biden came into office.
Hopefully the above explanation is somewhat clear.
So, assuming that the world's gold supply is 190,040 tonnes and 3,000 new tonnes of gold are mined a year that's a 1.6% increase. So if world GDP growth is 3% then the gold supply will be below world economic growth and gold will remain a rare commodity. That's Bitcoins selling point. Still easier to stop Bitcoin than gold however. The crypto that is based on non-fungible tokens (NFTs) like a digital picture of Justin Bieber are pure crap and are like the Dutch tulip bulb mania.
Sure, but gold has a use in manufacturing etc... Bitcoin doesn't.
Just another issue for gold greater than Bitcoin.
If you wanted to move $10,000 worth of gold from Seattle to Miami, there's a cost to that. If you want to move $10 million worth of gold from Houston to Tokyo, that will cost you tens of thousands of dollars at least. With Bitcoin, you can send $10 million from New York to Paris in just a few minutes for a small cost via the Lightning network. AND do it instantly with final settlement.
Also as we've seen with every country on earth including the USA (in 1933), the government can outlaw and seize your gold whenever they wish. With Bitcoin, you can self-custody with multi-sig setup and the government can't take it from you unless they put you in jail and sweat it out of you.
And try taking a gold brick with you through airport security. They will confiscate it and never give it back, even though it's your asset!
Couldn't you just move that gold as cash by selling it? Do people actually have gold bars sitting around when they own gold as an investment? This seems like a fancier version of Western Union.
Until I can pay my taxes and country club dues in bitcoin without converting to dollars, I’m out.
He supports Bitcoin. Derek, can you help me understand what he means by "proof of work" and how this differentiates Bitcoin from the other cryptos?
He would be able to describe much better than I. I basically understand it but struggle to describe precisely. But I can give the basics. There are about 20,000 cryptos and they are all securities. They have a centralized group that issues the tokens and controls the protocols. If they want to issue more tokens in the same way the The Fed creates more dollars out of thin air, they are able to do so. They are under severe attack from the US government. But Bitcoin has been designated by the IRS as a commodity. There is no entity controlling Bitcoin. It is literally considered to be property in the USA. In El Salvador it is currency, but that's a different conversation.
In proof of work, the miners secure and verify the blockchain around the world and they compete to solve a math puzzle. These are ongoing. The winner gets to update the blockchain with the latest verified transactions. It gets rewarded with XX amount of Bitcoin. They are mining new coins.
The mining undergoes halvings every four years. From memory I think that 6.5 bitcoin are mined every day currently. About a year from now it will cut in half to 3.25 per day. This will go on every four years until the year 2140 when the final Bitcoin will be mined. It is specifically designed to be a digital scarcity, unlike gold and silver which are mined constantly and adding to the global supply, as well as fiat dollars which of course are always expanding and devaluing the worth of our dollars.
In the end there will be 21 million Bitcoin in circulation. There will never be more than 21 million. Nobody on earth has the power to alter this.
"Proof of stake" to my understanding is that it simply takes putting up crypto as collateral to secure a transaction on the Blockchain. Proof of work means Bitcoin is a beast that has one foot in the digital world and one foot in the physical world, to borrow from a Bitcoin writer named Gigi. There is real world physical energy backing Bitcoin transactions.
The Biden admin has shown itself to be hostile to Bitcoin but they will never be able to kill it. They are currently successful in driving Bitcoin entrepreneurs overseas to friendlier nations. The other day I heard that many American entrepreneurs are relocating to the UK and El Salvador to pursue their new businesses because the USA has become hostile since Biden came into office.
Hopefully the above explanation is somewhat clear.
So, assuming that the world's gold supply is 190,040 tonnes and 3,000 new tonnes of gold are mined a year that's a 1.6% increase. So if world GDP growth is 3% then the gold supply will be below world economic growth and gold will remain a rare commodity. That's Bitcoins selling point. Still easier to stop Bitcoin than gold however. The crypto that is based on non-fungible tokens (NFTs) like a digital picture of Justin Bieber are pure crap and are like the Dutch tulip bulb mania.
Sure, but gold has a use in manufacturing etc... Bitcoin doesn't.
Just another issue for gold greater than Bitcoin.
If you wanted to move $10,000 worth of gold from Seattle to Miami, there's a cost to that. If you want to move $10 million worth of gold from Houston to Tokyo, that will cost you tens of thousands of dollars at least. With Bitcoin, you can send $10 million from New York to Paris in just a few minutes for a small cost via the Lightning network. AND do it instantly with final settlement.
Also as we've seen with every country on earth including the USA (in 1933), the government can outlaw and seize your gold whenever they wish. With Bitcoin, you can self-custody with multi-sig setup and the government can't take it from you unless they put you in jail and sweat it out of you.
And try taking a gold brick with you through airport security. They will confiscate it and never give it back, even though it's your asset!
Couldn't you just move that gold as cash by selling it? Do people actually have gold bars sitting around when they own gold as an investment? This seems like a fancier version of Western Union.
Until I can pay my taxes and country club dues in bitcoin without converting to dollars, I’m out.
You're discounting the ease of purchasing hookers and blow with BTC.
He supports Bitcoin. Derek, can you help me understand what he means by "proof of work" and how this differentiates Bitcoin from the other cryptos?
He would be able to describe much better than I. I basically understand it but struggle to describe precisely. But I can give the basics. There are about 20,000 cryptos and they are all securities. They have a centralized group that issues the tokens and controls the protocols. If they want to issue more tokens in the same way the The Fed creates more dollars out of thin air, they are able to do so. They are under severe attack from the US government. But Bitcoin has been designated by the IRS as a commodity. There is no entity controlling Bitcoin. It is literally considered to be property in the USA. In El Salvador it is currency, but that's a different conversation.
In proof of work, the miners secure and verify the blockchain around the world and they compete to solve a math puzzle. These are ongoing. The winner gets to update the blockchain with the latest verified transactions. It gets rewarded with XX amount of Bitcoin. They are mining new coins.
The mining undergoes halvings every four years. From memory I think that 6.5 bitcoin are mined every day currently. About a year from now it will cut in half to 3.25 per day. This will go on every four years until the year 2140 when the final Bitcoin will be mined. It is specifically designed to be a digital scarcity, unlike gold and silver which are mined constantly and adding to the global supply, as well as fiat dollars which of course are always expanding and devaluing the worth of our dollars.
In the end there will be 21 million Bitcoin in circulation. There will never be more than 21 million. Nobody on earth has the power to alter this.
"Proof of stake" to my understanding is that it simply takes putting up crypto as collateral to secure a transaction on the Blockchain. Proof of work means Bitcoin is a beast that has one foot in the digital world and one foot in the physical world, to borrow from a Bitcoin writer named Gigi. There is real world physical energy backing Bitcoin transactions.
The Biden admin has shown itself to be hostile to Bitcoin but they will never be able to kill it. They are currently successful in driving Bitcoin entrepreneurs overseas to friendlier nations. The other day I heard that many American entrepreneurs are relocating to the UK and El Salvador to pursue their new businesses because the USA has become hostile since Biden came into office.
Hopefully the above explanation is somewhat clear.
So, assuming that the world's gold supply is 190,040 tonnes and 3,000 new tonnes of gold are mined a year that's a 1.6% increase. So if world GDP growth is 3% then the gold supply will be below world economic growth and gold will remain a rare commodity. That's Bitcoins selling point. Still easier to stop Bitcoin than gold however. The crypto that is based on non-fungible tokens (NFTs) like a digital picture of Justin Bieber are pure crap and are like the Dutch tulip bulb mania.
Sure, but gold has a use in manufacturing etc... Bitcoin doesn't.
Just another issue for gold greater than Bitcoin.
If you wanted to move $10,000 worth of gold from Seattle to Miami, there's a cost to that. If you want to move $10 million worth of gold from Houston to Tokyo, that will cost you tens of thousands of dollars at least. With Bitcoin, you can send $10 million from New York to Paris in just a few minutes for a small cost via the Lightning network. AND do it instantly with final settlement.
Also as we've seen with every country on earth including the USA (in 1933), the government can outlaw and seize your gold whenever they wish. With Bitcoin, you can self-custody with multi-sig setup and the government can't take it from you unless they put you in jail and sweat it out of you.
And try taking a gold brick with you through airport security. They will confiscate it and never give it back, even though it's your asset!
Couldn't you just move that gold as cash by selling it? Do people actually have gold bars sitting around when they own gold as an investment? This seems like a fancier version of Western Union.
Until I can pay my taxes and country club dues in bitcoin without converting to dollars, I’m out.
You're discounting the ease of purchasing hookers and blow with BTC.
whynotboth.gif
I can get those charged straight to my account at the CC.
Comments
Well, you do you.
I’m having difficulty understanding the value proposition of the Fed here under those guidelines.
Also as we've seen with every country on earth including the USA (in 1933), the government can outlaw and seize your gold whenever they wish. With Bitcoin, you can self-custody with multi-sig setup and the government can't take it from you unless they put you in jail and sweat it out of you.
And try taking a gold brick with you through airport security. They will confiscate it and never give it back, even though it's your asset!
whynotboth.gif