Understand the implications of Bitcoin's downfall in El Salvador. Learn about the failed economic bet and its impact on the country's financial stability.
If you think crypto is a scam, wait until you learn about how fiat currency works. Crypto is a great idea that has been plifered by scammers trying to make another pump and dump scheme.
It really isnt that far off from the stock market, and there are books of regulations involving share trading because all the various frauds commited over the centuries, though most are to protect the captial…
I mean neither does FIAT currency, U.S. currency is based on taxes , there is nothing that backs it. Majority of GDP is just finance. We need more education on what and how a currency actually works.
The value of a unit of currency is based on someone else’s willingness to accept it. If you’re willing to accept two clam shells in exchange for one widget, then our clam shell currency has value between us.
Almost anyone in the world is (currently) willing to accept a US dollar. There will be some exchange rate and transaction fee, so maybe I demand three dollars instead of two. I know that I can convert those three US dollars into my local currency that others are willing to accept.
The whole premise of bitcoin is that the line will continue going up and someone will always be willing to pay more for it than what you paid. If you agree to sell your car for one bitcoin, and tomorrow it crashes, you just lost the entire value of your car. The chances of a sovereign currency crashing is never 0, but it’s much more stable than bitcoin.
Almost anyone in the world is (currently) willing to accept a US dollar. There will be some exchange rate and transaction fee, so maybe I demand three dollars instead of two.
This is exactly the same with crypto. You might argue there are technological barriers to using bitcoin but many of those barriers apply to petrol-dollars as well.
The whole premise of bitcoin is that the line will continue going up
The whole premise of fiat currency is that the line will go down so rich people constantly need a ROI and poor people are constantly pushed deeper into poverty. This is not a superior system.
Violence based currencies are not sustainable in the long term. That’s why the petrol-dollar has been steadily decreasing in global reserves. It’s why the IMF has to outlaw bitcoin instead of competing with it.
Crypto is a massive scam. It has no value. It is just used to obscure fraud.
If you think crypto is a scam, wait until you learn about how fiat currency works. Crypto is a great idea that has been plifered by scammers trying to make another pump and dump scheme.
It really isnt that far off from the stock market, and there are books of regulations involving share trading because all the various frauds commited over the centuries, though most are to protect the captial…
I mean neither does FIAT currency, U.S. currency is based on taxes , there is nothing that backs it. Majority of GDP is just finance. We need more education on what and how a currency actually works.
The value of a unit of currency is based on someone else’s willingness to accept it. If you’re willing to accept two clam shells in exchange for one widget, then our clam shell currency has value between us.
Almost anyone in the world is (currently) willing to accept a US dollar. There will be some exchange rate and transaction fee, so maybe I demand three dollars instead of two. I know that I can convert those three US dollars into my local currency that others are willing to accept.
The whole premise of bitcoin is that the line will continue going up and someone will always be willing to pay more for it than what you paid. If you agree to sell your car for one bitcoin, and tomorrow it crashes, you just lost the entire value of your car. The chances of a sovereign currency crashing is never 0, but it’s much more stable than bitcoin.
This is exactly the same with crypto. You might argue there are technological barriers to using bitcoin but many of those barriers apply to petrol-dollars as well.
The whole premise of fiat currency is that the line will go down so rich people constantly need a ROI and poor people are constantly pushed deeper into poverty. This is not a superior system.
Nothing backs US currency?
I’d argue the US military backs the US dollar.
Violence based currencies are not sustainable in the long term. That’s why the petrol-dollar has been steadily decreasing in global reserves. It’s why the IMF has to outlaw bitcoin instead of competing with it.