mihaipaulstd

Cryptocurrency regulation

25 posts in this topic

2 hours ago, datamonster said:

@Preety_India Of course, every new technology is risky and the legal situation is unclear in the beginning. Those who can manoeuver this new and unknown territory are the innovators and early adopters. The majority will always be late to the party.

Most new technologies have purposes other than destruction.

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13 minutes ago, Preety_India said:

Why not? 

you cannot print cryptocurrencies like the fed prints money

you can mine them but we're approaching the protocol limit, so no bitcoin added in circulation anymore

Edited by mihaipaulstd

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Since someone asked why...

Just now, mihaipaulstd said:

you cannot print cryptocurrencies like the fed prints money

you can mine them but we're approaching the protocol limit, so bitcoin in circulation isn't to grow

The Fed doesn't actually print money. It's a metaphor. The Fed can do exactly what it does now even if all transactions are done with bitcoin. It's irrelevant because bitcoin prices will be determined by the dollar/bitcoin rates. What matters is debt and taxes.

 

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welp if bitcoin prices are determined by usd, won't all global economy depend entirely on usd?

if that's the case, with such a high fluctuation currency like bitcoin, regulating it is the last thing you would want to do

Edited by mihaipaulstd

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4 hours ago, mihaipaulstd said:

welp if bitcoin prices are determined by usd, won't all global economy depend entirely on usd?

if that's the case, with such a high fluctuation currency like bitcoin, regulating it is the last thing you would want to do

what is about imagining a world with payment possibilites in bitcoin, then there is no exchange in fiat currencies necessary.

6 hours ago, Preety_India said:

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

It's like normal currency, only digital. 

bitcoin is decentralized and has a steady supply of 21 million btc. it is like digital gold. 
it is uneffected within an economic boom or depression.
fiat currencies were backed by gold in the past, but these times are over. the free determination of the supply and tax rate of fiat-currencies by the fed is the cause of these artificial and catastrophic phases of economic boom and deperession. there is no possibility for a stability in markets and currencies, when money (or value, more general) is centralized and controlled.

even if bitcoin gets restricted or banned, it infects just centralized platforms. within the whole crypto-movement is a huge innovation in the defi-sector (decentralized finance) right now. defi runs over the tor-like network of huge numbers of nodes like the dark net. it is the basis of the internet and also the basis of the blockchain technology.
through the use of bitcoin over 10 years the blockchain behind bitcoin has grown with each block of the transactions. every new transaction must validate the whole blockchain, which is done by the miners in a network of many nodes. the difficulty of mining gets higher and higher with each transaction.
so there is both, a huge safety for making transactions and also a solid fundament against complete restriction.

the whole development is comparable to the internet. first there was just the possibility of sending mails and in this moment you can look how the possibilities has grown into infinity. bitcoin and the blockchain is not just for transactions in the sense of money. the blockchain is able to save information of every kind bounded by the blocks and hold together by the chain. so bitcoin is like a container of value, highly energy efficient, transparent and safe. 

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