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The situation in a nutshell
DerekJohnson
Administrator, Swaye's Wigwam Posts: 63,563 
in Tug Tavern
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Reminds me a bit of the dot.com boom and then bust, but at least some of those websites provided a valuable service.
I’ll admit crypto is not in my wheelhouse, but from the outside it seems like a house of cards with little real world applications.
I'm still not seeing crypto as being any more useful than as an alternative form of a stock. Wake me up when I can buy my groceries with crypto. The government will never allow that to happen.
Pretty good Zerohedge discussion on Bitcoin. The Bitcoin supply hasn't been cut in half. What has doubled is the cost to produce NEW Bitcoin which will cut into new production. New production as I posted previously is will end up around $46k per Bitcoin.
https://www.zerohedge.com/markets/china-re-bans-crypto-bitcoin-nears-record-high-tops-meta-market-cap-eth-etf-potential-isnt
So who makes Bitcoin and how much does it cost them to make it, what's the limit on how much they make and how do they profit? Who holds all the money to pay off all the people holding Bitcoin if they all decide to cash in?
Bitcoin miners use large scale computer applications to solve algorithmic computer problems. Once the task is complete they receive a Bitcoin from someone.
It's projected that computer and electrical costs to solve a Bitcoin problem will cost $46k. Again someone decides when they will double the cost of producing a Bitcoin to keep supply down.
There is no money just Bitcoins. Just like there is no money mining gold. Just gold that is sold on the open market. If there are more buyers than sellers the price goes up to clear the market. If there are more sellers than buyers the price per Bitcoin goes down.
The Bitcoin “farms” use an extraordinary amount of electricity. I’m surprised the Gretas haven’t gone that route yet to shut it down. Greenie Globalists must be heavily invested in it. I’d expect EPA regulations in the USA after the upcoming sell off.
https://www.bloomberg.com/news/articles/2024-02-01/bitcoin-miners-in-us-consume-up-to-2-3-of-nation-s-electricity
It will be AI versus Bitcoin. China already outlaws Bitcoin mining in China as they don't like Bitcoin and they are power short, not that they give a sh*t about CO2 emissions. The comment that Bitcoin is using green renewable energy is a canard. There is just fungible electricity. As I mentioned there are several Bitcoin mining operations in The Dalles using the local PUDs cheap electrical energy from the Columbia River dams. The miner's use of the renewable hydropower just means someone else isn't.
https://www.zerohedge.com/markets/china-re-bans-crypto-bitcoin-nears-record-high-tops-meta-market-cap-eth-etf-potential-isnt
And how will governments intervene.
Well we have already seen some hints, with claims that crypto-mining is sucking the grid dry, killing the climate, and leaving us all cold and starving (ok some hyperbole offered there, but it's coming). Michael Saylor has an answer for that canard too as he sees some of the heat coming off of Bitcoin when it comes to environmental concerns in the future, if not already.
He argued that as Bitcoin has become increasingly energy-efficient, politicians and environmental lobbyists are starting to shift their attention to AI’s energy demands.
Bitcoin mining simply adds more strain to the power grid. People like the guy making that comment must think each farm somehow creates their own energy source out of thin air. It all pollutes the environment by using natural resources like water and mined fuels.
AI isn’t going anywhere. Bitcoin seems to be massively over leveraged unless you’re a multi-billionaire investing in it or a government looking to capture it. Do small investors even have easy ways to use their bitcoin in everyday life?
If you are in a Bitcoin ETF with a brokerage account, just write a check on you brokerage account. No different than owing a gold ETF/mutual fund or shares of Berkshire Hathaway in your brokerage account.
But good exists and is accepted to back money globally because it’s accepted as valuable, whether one agrees with it or not.
What is the tangible “value” of a bitcoin? Again, this is not my wheelhouse at all but I’ve lived long enough to see a lot of boom/bust in emerging marketplaces.
I agree, I prefer gold because I don't trust whoever controls the Bitcoin rules and that the powers that be hate it. Actually, dollars don't exist. They are just an intangible backed by the Full, Faith and Credit of a nation that has lost all credibility and we are running up a trillion dollars of debt a quarter and have imported over 10 million illegal and legal immigrants in the last three plus years who largely are a burden on the economy with no end in sight. Dems win in 2024 and it's over. Just like the blue cities we will be in a doom loop.
You could do this in like 2014 my dude.
China outlawed it because it allowed for untracked transactions and capital flight out of the mainland. Big no no as their economy is in a slow motion car crash from capital flight.
Gives you insight into why the Feds don't like it either.
As shitty as the dollar is, it is at least backed up by the military.
I'll keep my precious metal coins, guns and ammo! I can get whatever I want if it gets bad enough.
Where are you shopping for food?
move to El Salvador and you can. Despite what the MSM will tell you, the new president there has cracked down hard on crime
You've been able to get a debit/visa for a crypto account for a long time. It means you have to have crypto deposits with an institution but that's kind of how that works.
There's been bitcoin ATM's in my neighborhood since before the vid.
A house of cards would be the US dollar. The other day someone on here called bitcoin "fairy dust". Nothing could be further from the truth. The sad irony is that if anything is fairy dust it is the US dollar. The Fed can push a few buttons and print all the US dollars they want without having to produce anything. And the resulting inflation then makes our purchasing power disappear.
Bitcoin is many things, but primarily it is a store of value for civilization and a path yo self-sovereignty. Its not about paying for groceries with your bitcoin. You can have any fiat currency pegged to bitcoin to pay for whatever your gas and groceries.
Bitcoin is digital gold, digital property, digital energy, digital SCARCITY, and can be used as a digital currency technically speaking.
Also… Bitcoin, not crypto