Gastro Gnome - Eat Better Wherever

Crypto vs. Fiat

Hircine

Active member
Joined
Apr 8, 2023
Messages
101
1964 was the last year the U.S. relied on an asset backed the U.S. dollar. We look back and think about a coffee costing a nickle or a gallon of gas costing 10 cents. Times did seem good back then. But as our nation grows, so does the needs to supply each individual with resources to sustain life, liberty, and the pursuit of happiness.
With such growing demands it becomes obvious the gold standard became harder to keep. And for many reasons, the gold standard was eliminated. This allows growth but at what cost? The cost of having a finite resource supporting the dollar. Which lends opportunities and catastrophic pitfalls.
As mentioned before, a great opportunity of an inflationary currency allows the growth of a nation to expand faster and larger than it's predecessor gold standard. But there comes many problems with it. For one is having a system that is controlled and regulated on the federal level. Let me explain this implication. When the U.S. was backed by gold there was only so much that could be tapped into an adulterated. Turn to a system that isn't backed by a finite resource and the government can print as much money as they want, whenever they want and before you know they're going to do it.
It's a basic economic fundamental to understand that the more of something there is, the less it's worth this is the essence of inflation. It's important to understand that the reason cost goes up is because not because people are necissarily getting paid more but that the strength of the dollar weakens so it takes more purchasing power aka dollars to attain goods and services.
So what am I getting on about? The fact that we don't like the government getting their grubby hands into our business and manipulating the hard earned money we work for that inherently gets taxed more and worth less as the years go on. Think about this, putting your money into a savings account actually weakens your financial power because it doesn't even return the annual inflation put onto the same money.
Naturally people look to the stock market in hopes their money will at least beat inflation. Put it into a retirement plan and you're on your way to making sound decisions, but there's a caveat. There is no garuntee in the event of an economic collapse that you will be able to withdraw your money. Why? The governments interest to control funds and corporations.
As we move to an ever increasing digital economy and world we become more reliant than ever on big brother government. The same government that issues and manipulates and controls your money and then taxes everything you do with it.
This is where the controversial topic and the heart of this post comes into play, cryptocurrencies. I understand many people here don't actually understand (or even care to understand) what cryptocurrencies are. In a nutshell they are basically like stocks in a stockmarket. They all do different things thus they naturally serve different purposes. For instance, the "godfather" of cryptocurrencies is the Bitcoin and is revered as digital gold. Bitcoin is a finite resource of a max 21 million coins that can ever be produced or (mined). Ethereum on the otherhand is a semi-inflationary utility workhorse that is suitable for everyday commerce. It even can do more transactions per second than visa can manage! Think of etheruem as being it's own internet. Through every transaction a small amount of ethereum gets used up (burned) and if the burning outpaces the mining then you have a deflationary asset, if the opposite happens then it's inflationary but this hasn't happened since an upgrade which is called a (fork). It's called a fork because it's technically an improved version of itself. But how does it improve? Well my fellow reader, it improves by a vote by the people who hold the asset! The people control the future of the asset. Imagine being able to do that with fiat. The angst you have with the value of your ever weakening fiat and the overwhelming control the government has over it gets put into your hands and it really is a beautiful thing!
There are thousands of cryptocurrencies being made all the time, most of them are scams or memecoins aka shitcoins. But there are a few with real world applications and potential.
Here's a fact, the most valuable currency in the world is bitcoin. And imagine using a currency like that without having to convert it to a foreign currency because it's already recognized globally minus a few countries that tend to be communist anyways.
In summary I'm flabbergasted by the people who put their faith into the same system that oppressed their financial freedoms year after year and then bash cryptocurrencies as some fluke and is dying off. Yes there's hiccups along the way, the idea of cryptocurrencies came to fruition only in 2009 there is a long road ahead but it's a very bright one too.
If you don't like your dollar weakening by the day and are fed up with government spending then I seriously urge you to understand the value and benefits of cryptocurrencies like bitcoin and ethereum.
 
1964 was the last year the U.S. relied on an asset backed the U.S. dollar. We look back and think about a coffee costing a nickle or a gallon of gas costing 10 cents. Times did seem good back then. But as our nation grows, so does the needs to supply each individual with resources to sustain life, liberty, and the pursuit of happiness.
With such growing demands it becomes obvious the gold standard became harder to keep. And for many reasons, the gold standard was eliminated. This allows growth but at what cost? The cost of having a finite resource supporting the dollar. Which lends opportunities and catastrophic pitfalls.
As mentioned before, a great opportunity of an inflationary currency allows the growth of a nation to expand faster and larger than it's predecessor gold standard. But there comes many problems with it. For one is having a system that is controlled and regulated on the federal level. Let me explain this implication. When the U.S. was backed by gold there was only so much that could be tapped into an adulterated. Turn to a system that isn't backed by a finite resource and the government can print as much money as they want, whenever they want and before you know they're going to do it.
It's a basic economic fundamental to understand that the more of something there is, the less it's worth this is the essence of inflation. It's important to understand that the reason cost goes up is because not because people are necissarily getting paid more but that the strength of the dollar weakens so it takes more purchasing power aka dollars to attain goods and services.
So what am I getting on about? The fact that we don't like the government getting their grubby hands into our business and manipulating the hard earned money we work for that inherently gets taxed more and worth less as the years go on. Think about this, putting your money into a savings account actually weakens your financial power because it doesn't even return the annual inflation put onto the same money.
Naturally people look to the stock market in hopes their money will at least beat inflation. Put it into a retirement plan and you're on your way to making sound decisions, but there's a caveat. There is no garuntee in the event of an economic collapse that you will be able to withdraw your money. Why? The governments interest to control funds and corporations.
As we move to an ever increasing digital economy and world we become more reliant than ever on big brother government. The same government that issues and manipulates and controls your money and then taxes everything you do with it.
This is where the controversial topic and the heart of this post comes into play, cryptocurrencies. I understand many people here don't actually understand (or even care to understand) what cryptocurrencies are. In a nutshell they are basically like stocks in a stockmarket. They all do different things thus they naturally serve different purposes. For instance, the "godfather" of cryptocurrencies is the Bitcoin and is revered as digital gold. Bitcoin is a finite resource of a max 21 million coins that can ever be produced or (mined). Ethereum on the otherhand is a semi-inflationary utility workhorse that is suitable for everyday commerce. It even can do more transactions per second than visa can manage! Think of etheruem as being it's own internet. Through every transaction a small amount of ethereum gets used up (burned) and if the burning outpaces the mining then you have a deflationary asset, if the opposite happens then it's inflationary but this hasn't happened since an upgrade which is called a (fork). It's called a fork because it's technically an improved version of itself. But how does it improve? Well my fellow reader, it improves by a vote by the people who hold the asset! The people control the future of the asset. Imagine being able to do that with fiat. The angst you have with the value of your ever weakening fiat and the overwhelming control the government has over it gets put into your hands and it really is a beautiful thing!
There are thousands of cryptocurrencies being made all the time, most of them are scams or memecoins aka shitcoins. But there are a few with real world applications and potential.
Here's a fact, the most valuable currency in the world is bitcoin. And imagine using a currency like that without having to convert it to a foreign currency because it's already recognized globally minus a few countries that tend to be communist anyways.
In summary I'm flabbergasted by the people who put their faith into the same system that oppressed their financial freedoms year after year and then bash cryptocurrencies as some fluke and is dying off. Yes there's hiccups along the way, the idea of cryptocurrencies came to fruition only in 2009 there is a long road ahead but it's a very bright one too.
If you don't like your dollar weakening by the day and are fed up with government spending then I seriously urge you to understand the value and benefits of cryptocurrencies like bitcoin and ethereum.
1682453956375.png
 
1964 was the last year the U.S. relied on an asset backed the U.S. dollar.
No idea where 1964 comes in. The US official left the gold standard in 1971, but one could argue the revaluing of gold/$ exchange price in 1934 was the first major step with Bretton Woods agreement post WWII the second major step.

A currency is just a medium of exchange. If there is no exchange, it isn't a currency, just fairy dust. That fairy dust has value as long as people believe it has value (see gold as example). If you get broad adoption in the use of Bitcoin to actually transact, it has a fighting chance, but the whole inflation argument has proven itself as pure horseshit. Crypto prices benefits from expanding money supply like everything else. If the "Big Brother is Controlling your money" argument doesn't work on BHR, then you have a lot of work to do. He is our litmus test for all conspiracy theories.
 
1964 was the last year the U.S. relied on an asset backed the U.S. dollar. We look back and think about a coffee costing a nickle or a gallon of gas costing 10 cents. Times did seem good back then. But as our nation grows, so does the needs to supply each individual with resources to sustain life, liberty, and the pursuit of happiness.
With such growing demands it becomes obvious the gold standard became harder to keep. And for many reasons, the gold standard was eliminated. This allows growth but at what cost? The cost of having a finite resource supporting the dollar. Which lends opportunities and catastrophic pitfalls.
As mentioned before, a great opportunity of an inflationary currency allows the growth of a nation to expand faster and larger than it's predecessor gold standard. But there comes many problems with it. For one is having a system that is controlled and regulated on the federal level. Let me explain this implication. When the U.S. was backed by gold there was only so much that could be tapped into an adulterated. Turn to a system that isn't backed by a finite resource and the government can print as much money as they want, whenever they want and before you know they're going to do it.
It's a basic economic fundamental to understand that the more of something there is, the less it's worth this is the essence of inflation. It's important to understand that the reason cost goes up is because not because people are necissarily getting paid more but that the strength of the dollar weakens so it takes more purchasing power aka dollars to attain goods and services.
So what am I getting on about? The fact that we don't like the government getting their grubby hands into our business and manipulating the hard earned money we work for that inherently gets taxed more and worth less as the years go on. Think about this, putting your money into a savings account actually weakens your financial power because it doesn't even return the annual inflation put onto the same money.
Naturally people look to the stock market in hopes their money will at least beat inflation. Put it into a retirement plan and you're on your way to making sound decisions, but there's a caveat. There is no garuntee in the event of an economic collapse that you will be able to withdraw your money. Why? The governments interest to control funds and corporations.
As we move to an ever increasing digital economy and world we become more reliant than ever on big brother government. The same government that issues and manipulates and controls your money and then taxes everything you do with it.
This is where the controversial topic and the heart of this post comes into play, cryptocurrencies. I understand many people here don't actually understand (or even care to understand) what cryptocurrencies are. In a nutshell they are basically like stocks in a stockmarket. They all do different things thus they naturally serve different purposes. For instance, the "godfather" of cryptocurrencies is the Bitcoin and is revered as digital gold. Bitcoin is a finite resource of a max 21 million coins that can ever be produced or (mined). Ethereum on the otherhand is a semi-inflationary utility workhorse that is suitable for everyday commerce. It even can do more transactions per second than visa can manage! Think of etheruem as being it's own internet. Through every transaction a small amount of ethereum gets used up (burned) and if the burning outpaces the mining then you have a deflationary asset, if the opposite happens then it's inflationary but this hasn't happened since an upgrade which is called a (fork). It's called a fork because it's technically an improved version of itself. But how does it improve? Well my fellow reader, it improves by a vote by the people who hold the asset! The people control the future of the asset. Imagine being able to do that with fiat. The angst you have with the value of your ever weakening fiat and the overwhelming control the government has over it gets put into your hands and it really is a beautiful thing!
There are thousands of cryptocurrencies being made all the time, most of them are scams or memecoins aka shitcoins. But there are a few with real world applications and potential.
Here's a fact, the most valuable currency in the world is bitcoin. And imagine using a currency like that without having to convert it to a foreign currency because it's already recognized globally minus a few countries that tend to be communist anyways.
In summary I'm flabbergasted by the people who put their faith into the same system that oppressed their financial freedoms year after year and then bash cryptocurrencies as some fluke and is dying off. Yes there's hiccups along the way, the idea of cryptocurrencies came to fruition only in 2009 there is a long road ahead but it's a very bright one too.
If you don't like your dollar weakening by the day and are fed up with government spending then I seriously urge you to understand the value and benefits of cryptocurrencies like bitcoin and ethereum.
gettyimages-1451506211-53db0d0ea8f77db81c0e469aa6f6fc593e143b64-s1100-c50.jpg


FTX founder Sam Bankman-Fried leaves Manhattan Federal Court after his first court appearance in New York. Federal prosecutors have charged him with criminal fraud.
Michael M. Santiago/Getty Images
There's an expression crypto enthusiasts use, with fingers crossed, in the hopes a particular digital currency's value will blast off: "To the moon!"

Much of crypto did graze the stratosphere at the start of 2022, when enthusiasm was astronomically high, but a few months later it all came crashing back down to Earth.

Bitcoin's value is roughly a fourth of what it was a year ago, and the industry is just starting to grapple with the fallout from the catastrophic implosion of the cryptocurrency exchange FTX.

In the future, 2022 may be regarded as a turning point for the world of virtual currencies, when they lost their luster and were cast out as a fringe product most people approach with skepticism and caution. Or it may simply be remembered as a stretch of excruciating growing pains for an industry still in its infancy.
 
i'm not any sort of crypto perma bull or anything. but everyone thought it was over with for good when it came crashing back to earth in 2018 after reaching, at the time, astronomical highs. and here we are again.

crypto will probably go quite high again, maybe even higher than before.

it's useless arguing why it should or shouldn't.
 
Last edited:
Despite all this negativity, they haven’t crashed to the floor. Why is that? Bitcoin down 70% is nothing when it’s up 10000% plus long term. The thing I find admirable about bitcoin is that it’s based off math not a bunch of clowns that haven’t shown the fortitude nor ability to manage a currency in the long term. Every currency/society has always failed. Hard to believe the mighty dollar will take a dirt nap but if you step back chit is accelerating. I don’t expect the dollar to make it another 100 years.
 
Despite all this negativity, they haven’t crashed to the floor. Why is that? Bitcoin down 70% is nothing when it’s up 10000% plus long term. The thing I find admirable about bitcoin is that it’s based off math not a bunch of clowns that haven’t shown the fortitude nor ability to manage a currency in the long term. Every currency/society has always failed. Hard to believe the mighty dollar will take a dirt nap but if you step back chit is accelerating. I don’t expect the dollar to make it another 100 years.
Reserve currencies have averaged like 94-5 years historically and the USD is 99 years old so it wouldn't shock me if it gets overtaken

Portugal 1450-1530
Spain 1530-1640
Netherlands 1640-1720
France 1720-1815
UK 1815-1920
US 1921- Present
 
I would add, that I also wouldn’t be surprised if bitcoin isn’t around in 100 years either. So who knows.
 
I own more than few and less that a lot of both BTC and ETH. My thought process was its a hedge. Hedge against what is the question? certainly not against inflation and especally not againt the dollar. My thought was at the time that the amount was not a significant percentage of our total portfolio, with potential upside that maybe exponential. I guess I wanted to hedge against my own lack of iminagatiom of its perceived future value and practicality.
 
No idea where 1964 comes in. The US official left the gold standard in 1971, but one could argue the revaluing of gold/$ exchange price in 1934 was the first major step with Bretton Woods agreement post WWII the second major step.

A currency is just a medium of exchange. If there is no exchange, it isn't a currency, just fairy dust. That fairy dust has value as long as people believe it has value (see gold as example). If you get broad adoption in the use of Bitcoin to actually transact, it has a fighting chance, but the whole inflation argument has proven itself as pure horseshit. Crypto prices benefits from expanding money supply like everything else. If the "Big Brother is Controlling your money" argument doesn't work on BHR, then you have a lot of work to do. He is our litmus test for all conspiracy theories.
Big brother is absolutely controlling our money and there's not a damn thing I can do about it, so no sense losing any sleep over it.
 
i'm not any sort of crypto perma bull or anything. but everyone thought it was over with for good when it came crashing back to earth in 2018 after reaching, at the time, astronomical highs. and here we are again.

crypto will probably go quite high again, maybe even higher than before.

it's useless arguing why it should or shouldn't.
You make the major point. No one should assume I have never, would never, or don't currently own crypto. I just hate a bad argument. It isn't an inflation hedge and it isn't protection from government control and it certainly isn't going to change the world. It's a SPECULATIVE asset that you buy thinking or hoping the value (in US $, of course) will go up. That's it.
 
Illuminati... The Syndicate... who are we talking

View attachment 273449
Definitely not these kooks. 🙂

The're way out there, even by SAJ-99 standards.
 

Latest posts

Forum statistics

Threads
113,114
Messages
2,009,547
Members
35,988
Latest member
george84
Back
Top