Bitcoin

Truth Detector said:
Not even close to the same. US currency is backed by a stable Government and economy. Stocks are backed by cash flows and assets. Bitcoin.....NOTHING backs it except for speculation.

The risk associated with it is incredibly high; more so than even speculative stocks. There are no regulations with bitcoin.
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Well I don’t disagree with any of your points but my point still holds. Obviously Bitcoins don’t share the level of confidence as the dollar does but some people do have confidence in them and do use them as currency in exchange for material goods and services. In fact the people’s confidence in currency is the only value it has.
 
Truth Detector said:
Not even close to the same. US currency is backed by a stable Government and economy. Stocks are backed by cash flows and assets. Bitcoin.....NOTHING backs it except for speculation.

The risk associated with it is incredibly high; more so than even speculative stocks. There are no regulations with bitcoin.
Click to expand...

I'm not comparing it to stocks, just the Dollar. GovCos have been known to fail, and ours, with it's debt/ earnings approaching so high, is close to the brink. Imagine if Hillbag has got elected? My confidence in the Dollar would be close to zero.

In fact I've had this conversation with my financial adviser before the 2016 election. I was very concerned with inflation, like what happened under Carter, or worse, the end result of socialism every time it's tried: hyperinflation. We went through the scenario:
  • My mutual funds would be fine because as the value of the Dollar declines, the stock prices simply increases along with it because, as you noted, their intrinsic value.
  • As long as I have more home mortgage debt, with a fixed interest rate, than cash (Dollars) in the bank, my cash accounts can simply be emptied to pay off most of the debt.


Bitcoin is regulated by its fixed algorithm. Hundreds of thousands of account holders have copies and if one is changed, all the others will know it in its next transaction and that account becomes void.
 
Dark Soul said:
I'm not comparing it to stocks, just the Dollar. GovCos have been known to fail, and ours, with it's debt/ earnings approaching so high, is close to the brink. Imagine if Hillbag has got elected? My confidence in the Dollar would be close to zero.

In fact I've had this conversation with my financial adviser before the 2016 election. I was very concerned with inflation, like what happened under Carter, or worse, the end result of socialism every time it's tried: hyperinflation. We went through the scenario:
  • My mutual funds would be fine because as the value of the Dollar declines, the stock prices simply increases along with it because, as you noted, their intrinsic value.
  • As long as I have more home mortgage debt, with a fixed interest rate, than cash (Dollars) in the bank, my cash accounts can simply be emptied to pay off most of the debt.


Bitcoin is regulated by its fixed algorithm. Hundreds of thousands of account holders have copies and if one is changed, all the others will know it in its next transaction and that account becomes void.
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Dark Soul: "My mutual funds would be fine because as the value of the Dollar declines, the stock prices simply increases along with it because, as you noted, their intrinsic value."
Jack: Inflation/hyperinflation would cause people to start cashing out of their Stock Funds to pay for things. As more people cashed out, there would be less Buyers. People would stampede to sell, causing Stock prices to fall.
 
Jack said:
Jack: Inflation/hyperinflation would cause people to start cashing out of their Stock Funds to pay for things. As more people cashed out, there would be less Buyers. People would stampede to sell, causing Stock prices to fall.
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There would be a huge dip in stock overall value, yes, but in the short term. As you stated, people would still need goods and services, and these companies represented by stock values would still be able to provide them. So the best strategy would be to buy, not sell.
 
Wow. Bitcoin is a very good investment of money. Now everyone talks about bitkoin. But now bitcoin is falling in price. And the people lost money.
 
Truth Detector said:
It is VERY different; it is not backed by ANYTHING. US currency is backed by economic activity and the trust in the US Government. The value of bitcoin could disappear tomorrow and you would be left with NOTHING. That would not be the same case for US currency.
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Well that explains why the dollar is in steady decline. :rofl2:
 
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