Make sure you understand what it is. If you believe in it a particular technology and think that is will be the future of money as we know it then buy the dips and stay in for the long haul. You may be rewarded greatly or you may lose everything you put in.
At this point we are waiting for a catalyst, some large scale adoption of the currency. Once that happens things will spike and stabilize. It will hopefully be more stable like standard currency at that point and will be able to be used like regular money (with out all the institutions taking their cut for the trading of it).
I was quite astonished when I read about bitcoin theft. Hackers break the security of a wallet (or god forbid, guess the password) and whooshā¦ itās gone. All that blah about how the blockchain is so safe and can replace the whole banking system but thereās apparently no way to retrieve undeniably stolen coins.
Banks do this all day everyday by lending money (creating it out of thin air) adding the balance to their customersā accounts and collecting interest on it.
The process devalues the currency, diminishes the purchasing power of wages and creates the need for constant unsustainable growth.
Shouldāve bought in 2011. Max Keizer and Stacey Herbert have been telling people to buy for nearly 10 years.
These guys should lead the economics curriculum of every school, college and university. There is nothing they donāt know about economics and no dogma they canāt rip to shreds given 15 minutes https://www.youtube.com/channel/UCXPDEt1UDRmH4BSOJGr8_ng
Iām pretty sure you know that statement is omitting the fact that they can only loan if the bank has the assets on its books, plus, typically speaking, pledged collateral for the newly originated loan. They donāt just whip up loans, collateral and credit worthiness be damned, anymore than they print cash.
They arenāt allowed to print an arbitrary balance sheet adjustment for themselves and say their $5B is now $20B.
Why didnāt TARP/TALF/HARP/QE blow up the rate of inflation as Mises followers would expect? How has gold and silver worked out for Keizer acolytes? Iāve been a fan for a long time, but heās not without his own issues and bad calls, either. He has his own agenda, that much is for sure.
Not true. This is exactly how fractional reserve works. They donāt have to have the assets to loan out, only a small fraction of it. They obviously donāt print cash, only central banks can do this. This is reflected in the fact only $1.2 trillion out of the total $10.5 trillion in global circulation actually physically exists. In the U.K. last year it was only around Ā£80 billion.
Inflation didnāt blow up after QE etc. because inflation is usually linked to an expansion of the money supply. However in this case, the huge sums of money created by the central banks didnāt make it into the real economy. Instead it was hoarded by the big financial institutions to increase their reserves to provide confidence in those institutions and to kickstart inter-bank lending again. This only benefited the banks and wasnāt passed on to SMEs or the public.
The whole thing was a rouse that the taxpayer will be paying for for many years to come. Everyone involved should be striped of all their assets, made destitute, charged with what is effectively fraud and embezzlement and put in prison.
Thing with Crypto, BTC and ETH are a gateway to the other alts. I started with them to, I hardly have any now. I have a hodl portfolio and a short term day trading one. Itās a lot of fun outside of making music.
BIS capitalization rules require other than what you are stating. Assuming there are UK banks doing as you say, they are committing fraud and I would hope the FCA, et al, would seek to resolve that. What Iāve stated is how legal 1st world banking works. I understand that doesnāt make for very interesting youtube videos though.
A whole lot of these alt finance guys love to state financial conspiracy fiction as if it were fact. Gerald Celente is another one that immediately comes to mind. Itās obvious that he is knowledgeable, yet he intentionally misleads and says that US inflation measures do not include food and fuel, which combined, represent a large percentage of monthly expenditures for many US households. The problem is that this is completely false, and is something he probably states on close to 75% of his major media panels and interviews . And of course this ends up being recited by alt finance people as if it were fact. So are these people willfully ignorant or intentionally misleading their audience? Either way, they own the responsibility for misleading their viewership, IMHO.
Bitcoin was cool as a proof-of-concept but now itās grown into an out-of-control monster, see my prior post about the insane ecological impact. A couple of smart guys will come out on top of it and own the new monopoly. So much for that democratization story.
Sources please. Iām not an expert but I donāt think BIS advises on this (other than various exposure ratios). And I havenāt seen any legislation that says the fractional reserve system that I describe being in use, is fraudulent or unlawful.
Iām not dogmatic - and Iām open to being wrong - please educate me otherwise
thats just becaues people have to get used to the fact that you are fully responsible for your wallet - and not your bank anymore. because there is none just make backups in several places, use desktop wallets only (with a strong password) and solely use them as cold wallets. use online wallets only as proxies to transfer the coins to your cold wallets on your pc/stick. that way the risk of loosing them or get hacked is very low. in fact, im almost sure that these hacks were only possible because people just used the technology without really understanding how it works!
the real problem with bitcoin is: gold mine time is gone. you need waaay too much processing power to even appear in one of the various pools around the world. your regular computer simply doesnt hash fast enough anymore. and buying coins, speculating with exchange rates and making money by predicting peaks correctly - this is really NOT for everyone! including me ;.)
messing around with zcash at the moment. still havent got a miner to work on my computer though ^^ but the whole thing of crypto money is quite interesting and seems to have potential - if technology proves over time!
A question to people (considering) running miners on their computers, or investing in shared mining facilities/services: if you were offered money - say ā¬1000 - for pouring toxic waste into the nearest lake or river, would you do it?
just make backups in several places, use desktop wallets only (with a strong password) and solely use them as cold wallets. use online wallets only as proxies to transfer the coins to your cold wallets on your pc/stick. that way the risk of loosing them or get hacked is very low. in fact, im almost sure that these hacks were only possible because people just used the technology without really understanding how it works!