The situation in a nutshell
Comments
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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.
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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.
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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.
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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?
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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.
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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.
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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.
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.
“If you look at AI, a lot of these hyper scalers are looking to scale up 60 gigawatts this year, and they’re wanting to go to 600 gigawatts within a decade, so what’s going to happen is they’re going to inherit all of the energy FUD [fear, uncertainty and doubt] that we used to have.”
“So they will actually throw all their lobbyists at that.”
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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?
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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.
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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.
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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.
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You could do this in like 2014 my dude.
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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.
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As shitty as the dollar is, it is at least backed up by the military.
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I'll keep my precious metal coins, guns and ammo! I can get whatever I want if it gets bad enough.
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Where are you shopping for food?
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move to El Salvador and you can. Despite what the MSM will tell you, the new president there has cracked down hard on crime
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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.
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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.
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Also… Bitcoin, not crypto
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I'm not trying to insult you but Bitcoin is every bit as a self-sovereign possession as the things you mentioned. Even more so.
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At the end, the dollar is backed up by military force if necessary. What protects Bitcoin?
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I have a couple smart ass questions in the case of shtf
How do you shoot a Bitcoin at someone trying to steal your gold/silver coins.
If you can't see your Bitcoin being stolen where do you aim to shoot the thief?
How much bread can you get with a bitcoin when the Internet/ power grid is down?
(For the bible believers out there) When the Antichrist shows up what will be the easiest way to control buying and selling ?
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I'm not insulted and I'm not saying it's worthless but who the hell controls it and creates it? Who holds the money that backs it and in what form or currency? How does one spend it if they decide to shutdown communications? Who controls it? Can they just dissolve it? Just walk away? Where do they keep the money that people used to purchase it? Is it backed by anything or 4 guys in a garage? If they turned off the internet and phones tomorrow how would I spend it? Who possess and controls all of the data on the bitcoin? Could they just wipe my bitcoin out of the memory or transfer it to someone else? How do you prove ownership of bitcoin? How did the Canadian government keep the truckers from using it as they somehow shut down their access.
These are the kind of questions I have.
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I admit to being mostly ignorant of how the Bitcoin market works and these are basically some of the same questions I have about it. What is even being “mined” that uses so much energy? Is it tangible in the real world if not converted to dollars for use?
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I'm with Derek on the US dollar. Closing in on $35 trillion in debt. The US dollar is just as intangible as a Bitcoin. The competitive advantage of the US was the dollar as the world's reserve currency and the rule of law which protected private property. The dementia patient and the eternal war crowd have pretty much busted the reserve currency status over saving democracy in the Ukraine and racking up another trillion in debt each quarter. Look at New York and Trump and the rule of law and protection of property is dying. It starts small, but each year as the dems get more desperate for cash the talk of wealth confiscation grows. First they went for capital gains in Washington. Chatter grows for an annual wealth tax. Biggest targets are IRAs and 401(k) balances. Proposals are out there for a capital gains for a tax on mark to market tax on unrealized market gains. The US military has nothing to do with the US dollars decline and the underpinnings which have the US debt clock spinning like jet turbine blades. That leaves you with US Treasuries, Stocks, Gold and Bitcoin as security investments. US Treasuries is a bet that the US government will be committed to low inflation and protection of the dollar. Good luck. Stocks are at a record high. Just don't call it a bubble. Blue is S&P index and Orange in S&P Earning per Share. Nothing says a secure return like an EPS for large stocks like closing in on 200. That leaves gold and Bitcoin. Or you can buy into commercial real estate which is in a death spiral or residential real estate which is also in bubble territory with very little liquidity at 7% mortgage rates.
Elect a dem president in 2024 and the future looks grim. Looks grim right now.
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A big difference is the US government backs the dollar and uses it as the standard currency, and it’s also recognized worldwide. As pointed out earlier, China, a global superpower, doesn’t recognize Bitcoin as currency. I’m not pro-dollar or anti-Bitcoin, but you didn’t answer any of the questions regarding Bitcoin, and they are very ground-floor questions about its value in everyday life.
We’ve been in debt for my entire lifetime, but who’s going to call on that debt to be paid without tanking the global economy in the minuscule chance the US doesn’t go to war to protect itself.
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Once upon a time the US backed the dollar. Except during the late 1960s and 70s and then we did protect the dollar with Paul Volker starting in 1979. You can't run up debt at the rate of a trillion a quarter in 2024 with what buck says is a great economy and then claim that the US backs the dollar and when it's status as the world's reserve currency has been crippled. Even today, there are advocates that we steal the frozen Russians bank account dollars and give it to the Ukraine. We were in a bad debt situation in 1945 but BOTH parties were committed to financial solvency. Today, the dems don't even pretend to want to be fiscally solvent and the RINOs merely pretend to be fiscally responsible.
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Think of the cost to pay for the current invasion they are running. We are paying for all of it via NGO's and our own governemnet and military to move all those people, house, feed, cloth etc. Some go over the border several times a month and use a different name and collet all those free 5k credit cards and other bennies over and over.
I know why were dumping a trillion per quarter.
