Anyone into Cryptocurrencies?

[AgnosticBoy]

Cryptocurrencies are a form of currency, like the American Dollar, except that they are digital. Some of the popular cryptocurrencies are Bitcoin, Ethereum, Dogecoin, etc.

You can buy and trade them just as you would stocks. I'll post an introduction to them down below. But I'm wondering if anyone thinks that these currencies will have widespread use in the near future. I think it's a great idea to get rid of paper money.



Here's one good introduction to cryptocurrency:

*I'm not advocating for anyone to invest in cryptos.

 

[AgnosticBoy]

The Senate held a hearing on cryptocurriencies. Included were speakers on both sides of the issue so you can say it was like a debate in that sense. Here it is:

 

[AgnosticBoy]

Here is a very good debate on Cryptocurrencies (digital currencies) vs. Gold (basically boiled down to if cryptocurrency is a legitimate currency - does it have intrinsic value, etc.):

Anthony Scaramucci (in favor of cryptocurrency) vs Peter Schiff​

 

[AgnosticBoy]

Another good intro to cryptocurrencies..

 

[deanalepa]

Thanks for keeping us updated for such a long time. I wish you kept on sharing news about cryptocurrencies with us. I’m also curious to hear what you think about the situation with bitcoin. I don’t think it will go up, actually. I lost faith in it when it went below $20k. IMO, it was a critical moment, actually. Still, if the guys from moonbitcoins.com are still mining it, they think it will go up. I’ve known those guys for ages, so I don’t think they’re doing the wrong thing. Anyway, I’ll be waiting for your reply. Thanks in advance for your help.

 

[AgnosticBoy]

Thanks for keeping us updated for such a long time. I wish you kept on sharing news about cryptocurrencies with us.

Welcome to the forum, Deana.

Thanks for letting me know that I have been interesting to follow!

Crypto has had a lot of bad news lately. The latest problem is with one of the big crypto trading platforms called FTX. FTX filed for bankruptcy, and it seems a lot of their customers will lose a lot of money. Some people invested their life savings (which is a very bad idea). Several other crypto companies also invested in FTX so we'll see if they lose their money and go under, as well.

One big reason why FTX failed is because they were engaging in risky practices, like using the money of traders to bet on other stocks. And of course, in this bad market cycle, they likely lost a lot of their bets. SEC chair, Gary Gensler, gives a good explanation on that:

 

[AgnosticBoy]

And despite the collapse of FTX, Mark Cuban, a billionaire/investor, explains why he still sees value in the crypto world:

From cnbc...

Cuban has remained invested in crypto because he believes in smart contracts, one of the key underlying technologies that allow crypto transactions to be made, he explained on Twitter on Nov. 13.

Essentially, a smart contract is a computer program that is embedded into a blockchain network. They operate according to “if/then” commands; if X, then execute Y.

For a simple example of how a smart contract works, think of a vending machine. Typically, you make your selection, insert the required amount of money and receive the item. The “smart contract” within the machine is coded to dispense the selected item after the payment is made.

Cuban believes smart contracts will have a significant impact in creating valuable applications that have utility for everyone.

In Cuban’s view, a token’s value is derived from which applications it can be used for and how useful those applications are for users, he says on Twitter.

And here's another interesting piece of technology that big in cryptocurrency:
TED talk on the blockchain technology, the engine of cryptocurrency...

So there we have it. Two big technologies of cryptocurrency - the blockchain and smart contracts.

 

[AgnosticBoy]

DId SEC chairman Gensler and some US politicians have know about FTX problems and kept quiest, perhaps because they were being paid by FTX? These are stunning accusations that Dave Portnoy makes...

And here's Anthony Pompliano who has been described as an apologist for Cryptocurrency. He makes the case for cryptocurrency despite the collapse of FTX.. This is a CNBC interview.

 

[rozzy]

Bitcoin allows the entire system to be completely transparent. It has a public registry of transactions and anyone can see, check and analyze transactions.

 

[AgnosticBoy]

Bitcoin allows the entire system to be completely transparent. It has a public registry of transactions and anyone can see, check and analyze transactions.

That sounds right on the money! I also think it is deflationary in that there's a fixed amount and it's cut by a certain percentage every few years. This is unlike the dollar where the Feds can just keep printing money.