gouda
Scooter Banks
- Joined
- May 14, 2014
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Welp, there it is folks. Shut the whole thing down.
I lol'd.
Welp, there it is folks. Shut the whole thing down.
This is just a giant, well run Ponzi scheme. Why would legal businesses accept payment in "currencies" that can have 5-15% volatility in the day of a purchase? How can a business be viable if they sell something at 9AM for $100 in crypto that becomes worth $90 by the time they make their bank deposit?
Because more often it's worth $110?
Ugh, I don't want to spend too much time responding to this because we've addressed many of these issues before. You are correct - currently, bitcoin and other cryptocurrencies are very bad for transactional payments. This is a result of the fluctuation but also things such as transaction volume limits, processing speed, chargebacks/refunds, etc.This is just a giant, well run Ponzi scheme. Why would legal businesses accept payment in "currencies" that can have 5-15% volatility in the day of a purchase? How can a business be viable if they sell something at 9AM for $100 in crypto that becomes worth $90 by the time they make their bank deposit?
Image not working..Waiting on the nonny OGB inside info
Ugh, I don't want to spend too much time responding to this because we've addressed many of these issues before. You are correct - currently, bitcoin and other cryptocurrencies are very bad for transactional payments. This is a result of the fluctuation but also things such as transaction volume limits, processing speed, chargebacks/refunds, etc.
But two main points: 1) Bitcoin and all cryptocurrencies are still in their infancy. This technology is less than 10 years old and people are expecting it to replace fiat currency? That's ridiculous. Understand the technology and the potential but be realistic. 2) The goal or optimal use of many of these cryptoassets/cryptocurrencies isn't for shopping online at Walmart. The bull case for Bitcoin now often resides around it's ability to replace gold. Many others have applicability for cross-border payments or fully private payments.
And many of the companies aren't actually cryptocurrencies but cryptoassets, where their tokens have utilization value in payment for a future service on that network or may represent ownership in a company or organization.
Long story short, RJ, you're evaluation (while correct) is of one specific use case at a very immature time for the technology.
I said nothing about them replacing fiat currencies.
You also aren't taking into consideration that the long-term possibilities are that these "currencies" could be banned by nations. This would make the "currencies" valueless in cross border payments or being seen as an asset in ownership of the companies.
This is a cute game, but it's more dangerous to "investors" long-term than immediately. You can pump and dump the "currencies" quickly, but what if there is an international attack on them?
You hit some of them. Hell, in most states with legal pot (medical or recreational), you have to pay with cash. You can't use a check or credit cards and that's for something the state supports. If countries decide cryptocurrencies are for illegal activities, they can ban their use. Absolutely they can ban the ATMs and any ATMs that allow transactions.
Here's a question for you (because I don't know), do Bitcoin and the other brands report capital gains in use of the currencies to tax departments of the countries? I would be surprised if they did. First of all, it's sort of against the underlying principal.
Secondly, it would be unbelievably expensive. Let's say I bought a bitcoin for $10,000. A month later I buy something with a piece of that bitcoin that is now worth 20% more than when I bought the bitcoin. I have clearly made income that should be reported to the IRS. Is it? If it isn't everyone who makes a profit and uses cryptocurrency is committing tax evasion. How much would it cost these entities to report all of this in real time and for every transaction and to every government that has income taxes?
I'd hazard a guess that all the cryptocurrencies that don't report these profits will be guilty of conspiracy to commit tax fraud or complicity in it.
I'm sure there will be many other issues. But these are low-hanging fruit.
+1You might want to read up on BTC a bit. You thinking that bitcoin is an entity means you don't understand the most basic thing about crypto.
Who is they? Who is BTC?It doesn't matter how they like to structure themselves now. If they become a serious market player, BTC will be forced into acting like everyone else or driven from the market.
One thing you can take to the bank is that when you can use bitcoin at McDonald's that tax agencies around the world will want their cut. BTC can cry all they like and try to explain their business model all they like, but the taxman gets his.