mihaipaulstd

Cryptocurrency regulation

25 posts in this topic

What if some catastrophe or depression hits in a crypto predominant world?

How would the world recover?

How long will it take?

What would it take to restore the economy?

Edited by mihaipaulstd

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@datamonster

all I tried to point out is that the uncentralized nature of bitcoin makes it stand apart from government or central banks

when deflation strikes, then one great recession is getting even greater (and a recession is still nothing compared to how bad humanity could get destroyed without being able to recover in time)

if crypto currency becomes the predominant medium of exchange, then there will be no printing bitcoin to help facilitate the recovery process

5 hours ago, Preety_India said:

A few good men will bail us out. Nothing to worry. As usual. 

 

especially young and muscular

Edited by mihaipaulstd

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33 minutes ago, mihaipaulstd said:

@datamonster

if crypto currency becomes the predominant medium of exchange, then there will be no printing bitcoin to help facilitate the recovery process

 

Crypto currency is nowhere close to becoming the predominant medium of exchange. 


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31 minutes ago, Preety_India said:

Crypto currency is nowhere close to becoming the predominant medium of exchange. 

yeah, it might take a bit, but many catalysts are pointing in that direction

 

Edited by mihaipaulstd

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Just now, datamonster said:

Well, at least now you can buy cars with Bitcoin ?

It's not a predominant medium of exchange yet, but we'll get there sooner or later. It's already happening.

And I believe it will be beneficial to the world.

I'm sorry but I don't see this happening at all. Whenever I see someone discussing bitcoin it's usually young guys online, I hardly find anyone discussing this offline. 

Among the online population, only a tiny bit is actually interested in discussing bitcoin as majority is either not interested at all or does not know how bitcoin operates. Most people are simply unaware of the whole bitcoin thing except for the term bitcoin because you hear it so much but usually nobody has a clue how it actually works. 

In my country, a huge majority of people simply use hard cash to make transactions as they don't believe in using cards since these cards carry a high degree of risk, cards being stolen or hacked is a very common problem, the government is encouraging people to go digital in the sense, do online transactions to reduce the usage of cash, but online transactions are done using credit cards, not bitcoin. 

I'm not sure if it's going to be well received. I do a lot of online shopping and I don't remember any platform asking me to use bitcoins for the transaction. 

I would not find it safe unless my banks gives me a green signal on it. 

Till then I just see it as a temporary fad that people are raving about but I don't see it being as a practical form of currency. 

 


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If more people understood bitcoin, it would be banned. Blockchain and electronic payments in general and currencies you can mine such as bitcoin are separate issues.

If you use a credit card to pay in bitcoins, you are using the centralized system already regulated by central banks. You could just as well have paid in dollars or sterling instead of euros, as people have always done.

It doesn't matter how many people use bitcoins in transactions. That's irrelevant to depressions and it's not the main job of central banks to deal with that (though they might very well take on that less important job in the future). Very few people understand anything about money and credit.

1 hour ago, Preety_India said:

I would not find it safe unless my banks gives me a green signal on it.

There are plenty of banks which let you keep bitcoins, and that doesn't make it safe. Paying someone who is asking for bitcoins through your bank would on the other hand be safe. But if no one keeps bitcoin, no one is going to ask for bitcoins. So while some can be safe, not everyone can be safe.

Edited by commie

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If you aren't keeping bitcoin but paying in bitcoins supplied by your regular bank and paid for with your regular balance (or your credit), you are quite safe for instance. But someone, somewhere is necessarily left holding the bag.

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What about dogecoin? It is cheaper. Bitcoin is close 50k already. But I would think there must be at least a 2 strong cryptocurrencies. 
Elon (who is not your friend) was talking a big deal about dogecoin and then went ahead and invested I think it was a billion dollars on Bitcoin. 

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Just now, datamonster said:

What does this have to do with the fact that crypto currency is gaining popularity? 

Because how else will it be popular if everyone cannot use it? 

 


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2 minutes ago, datamonster said:

These people aren't using Google either, but I wouldn't call Google an unpopular website. LOL...

Google is popular. But Google is not related to money. 

You forget that basic household financial laws are not regulated by Google but by the government of your nation. Google is just a company  like Bvlgari or Gucci. 

But money is a basic asset for everyone around the globe and therefore its still in traded in the most traditional ways and that is cash.

A government cannot simply make a changeover to a currency system that the public doesn't know how to use or does not have the means to use it. The government has to ensure that everyone is on the same page to pass something as a common process for everyone. 

Government has nothing to do with what you do with Google. But Government has everything to do with what currency you use. 

So if most people in a country are not ready or equipped to use a certain system that is related to their basic needs, it doesn't get passed in the parliament. 

So the government makes it compulsory for you to get an ID card or a passport but it does not make it compulsory for you to use bitcoin. 

What I'm trying to point is that bitcoin might become a rage among a certain group of people yet it won't become mainstream unless governments around the world use it and for governments to use it in a full fledged manner will need public approval and such public approval will only come when everyone is on the same page, but a lot of people don't have internet and don't have banks or simply use cash, so the most basic vehicle of money never goes out of fashion, if this was a mode of payment like a credit card, it's understandable that people might want to switch on to it, however it's a currency, not a mode of payment, a currency is a huge deal for all the governments in the world. 

What are chances that a government will completely flip in the favor of Bitcoin when half of the world is not even sure how to use bitcoin? 

That's why I think it might float around as a fancy alternative currency for some folks but given the problems with digitalization and poverty and lack of internet, most people not knowing anything about credit or currency or cards, it will never be mainstream. 

 


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2 hours ago, commie said:

It doesn't matter how many people use bitcoins in transactions. That's irrelevant to depressions and it's not the main job of central banks to deal with that (though they might very well take on that less important job in the future). Very few people understand anything about money and credit.

after bitcoin becomes the main monetary currency, society will get more vulnerable to regulation dependent events

how about Australia's dependence on industrial exports which was hit the hardest in 1932? that's all transaction based

the supply-demand dynamic is hit the most in depressions, so transactions must be regulated

how do you deal with unemployment in a critical situation that requires inflation? a fully bitcoin driven society cannot deal with that, nor does the central bank

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Just now, mihaipaulstd said:

fully bitcoin driven society cannot deal with that, nor does the central bank

Why would bitcoin be impacted or cause a problem during depression? 

It's like normal currency, only digital. 


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14 minutes ago, Preety_India said:

Why would bitcoin be impacted or cause a problem during depression?

the Fed stepped in with a broad array of actions to limit the economic damage from covid including up to $2.3 trillion in lending to support households, employers, financial markets, and state and local governments

imagine that, but replace dolars with bitcoin

would that be possible?

Edited by mihaipaulstd

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