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[#] Fri Aug 14 2020 18:04:11 EDT from IGnatius T Foobar

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This could be interesting. MicroStrategy, the world's largest publicly-traded business intelligence company, has swapped fiat currency for Bitcoin as its treasury reserve asset.

[ https://tinyurl.com/y2cbrba7 ]

In the press release, their CEO refers to Bitcoin as "digital gold", citing that they expect it to be more stable in the face of economic and health crises brought on by the China Virus and its cascading effects. I think they're expecting QE and the resulting inflation to make Bitcoin increasingly stable and valuable. He claims that "eventually every public company will do the same".

The amount of currency they've taken on amounts to approximately 0.1% of the world's Bitcoin supply.

Are we past the point where serious financiers consider Bitcoin to be snake oil, and governments consider it to be counterfeit?

[#] Fri Aug 14 2020 22:52:05 EDT from zooer

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Fri Aug 14 2020 06:04:11 PM EDT from IGnatius T Foobar

This could be interesting. MicroStrategy, the world's largest publicly-traded business intelligence company, has swapped fiat currency for Bitcoin as its treasury reserve asset.

[ https://tinyurl.com/y2cbrba7 ]

In the press release, their CEO refers to Bitcoin as "digital gold", citing that they expect it to be more stable in the face of economic and health crises brought on by the China Virus and its cascading effects. I think they're expecting QE and the resulting inflation to make Bitcoin increasingly stable and valuable. He claims that "eventually every public company will do the same".

The amount of currency they've taken on amounts to approximately 0.1% of the world's Bitcoin supply.

Are we past the point where serious financiers consider Bitcoin to be snake oil, and governments consider it to be counterfeit?

 

I was wondering why the price spiked the past few days. 

I am sadden the price is rising.



[#] Sat Aug 15 2020 12:28:46 EDT from IGnatius T Foobar

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The reason I find it interesting -- and admittedly I might be completely wrong here -- is that it feels like Bitcoin could become a global currency that cannot be controlled or manipulated by global governance.

Naturally, we have to understand that cryptocurrency does have *some* element of fiat to it, because like a real fiat currency, it's only worth something because everyone agrees that it's worth something. Unlike conventional fiat currency, however, a government can't simply decide to print more of it and cause inflation.

[#] Sat Aug 15 2020 18:50:12 EDT from LoanShark

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A while back it was looking like there was significant evidence to suggest BTC price manipulation by a small, core group of traders. Cryptocurrency in general, and even BTC specific, may be far more vulnerable than you think.

The less popular crypto's are uniquely vulnerable: they aren't as attractive to miners. This puts them in a precarious position, in some cases, because miners possess large amounts of computing horsepower which can theoretically be redeployed on short notice to wherever the opportunity is best, i.e, whichever cryptocurrency is most profitable for mining at the moment because of its price dynamics.

If one of the smaller, less-traded and less-mined cryptocurrencies were to become uniquely unprofitable, miners might flee from it, shrinking the size of its mining pool. Then what happens next? A single large and well-funded mining group might possess enough computing horsepower to jump back in and control >50% of the deployed mining horsepower for that currency. They could then redirect their computer horsepower from mining other cryptos (or whatever other projects it's being used for) and control the quorum for that currency, rewriting its blockchain as they see fit.

Seems like less of a risk for BTC than the lesser-known cryptos, but there's no fundamental reason that BTC isn't vulnerable in the same way.

[#] Mon Aug 17 2020 17:01:51 EDT from IGnatius T Foobar

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How would that price manipulation work, though? Wouldn't it only impact the exchange rate between BTC and ${your_local_fiat} ?

In that case it would seem to be a short-term obstacle to full adoption, but a long-term credibility boost for crypto, suggesting that if that chasm is eventually crossed, BTC would be a more stable currency than traditional fiat.

My liquid holdings will continue to be in USD for now, but if the future is a global currency, I would far rather see it be managed by the blockchain than by the UN.

[#] Mon Aug 17 2020 17:57:23 EDT from zooer

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Fri Aug 14 2020 06:04:11 PM EDT from IGnatius T Foobar

This could be interesting. MicroStrategy, the world's largest publicly-traded business intelligence company, has swapped fiat currency for Bitcoin as its treasury reserve asset.

[ https://tinyurl.com/y2cbrba7 ]

After the announcement the many of the digital currency values started to rise.
https://coinranking.com/?sorton=price

 

As the pandemic was starting everyone said the prices would rise, it didn't seem to happen. The past week I have noticed the prices rising.

I think you need to create a Citade-coin.



[#] Fri Aug 21 2020 06:06:34 EDT from zooer

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Yearn Finance.... less than 30 days old, worth more than bitcoin.

 

Perhaps a digital currency room will soon be needed.  If you don't know the digital currency markets never close, they operate 24 hours a day.



[#] Tue Aug 25 2020 14:44:30 EDT from Ragnar Danneskjold

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All currency is bullshit in a certain way. It represents value and only has value if people perceive it to.

People talk about intrinsic value of gold as an example. Blah.

Food. Bullets. Hell, even nails may have more value in a meltdown.

I don't see bitcoin as being any more stable than any other currency in that sense.

[#] Wed Aug 26 2020 17:27:56 EDT from LoanShark

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It's been objectively less stable.

I find it ironic that the same people who *insist* that fiat currency is bad and that money must be inherently "something of value" then turn around and endorse BTC.

[#] Thu Aug 27 2020 14:09:49 EDT from IGnatius T Foobar

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Bitcoin *is* a fiat currency. It only has value because someone says it does.
That's practically the definition of fiat currency. The only difference is that the value is assigned by consensus rather than by a government. I think that's ultimately a good thing because a government can't artificially inflate the money supply. And as I mentioned above, if there's going to be one world currency, it damn well better not be managed by an international terrorist cartel like the UN, or by international banksters, or by any organization at all.

For now, though, Bitcoin is kind of like IPv6 -- everyone agrees it's better, but no one is ready to fully commit to it yet, and that seems to be its quasi-perpetual state.

[#] Thu Aug 27 2020 16:34:58 EDT from nonservator

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The kids are trying to convert me to Zcash.



[#] Sat Aug 29 2020 16:34:42 EDT from zooer

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If someone can move all the digital currency related messages from  Econometrica to this room that would be helpful.

Yearn.Finance reached $26,000+ today, and dropped to $25,000+

 

Yesterday, Fidelity filed paperwork with the U.S. Securities and Exchange Commission (SEC) to create a new fund dedicated entirely to bitcoin, which will require a minimum investment of $100,000.

CEO of Onramp Invest, Tyrone Ross, notes Fidelity’s minimum investment size indicates “they have no immediate plans to expand into retail offerings, but rather want to focus on the higher end institutional side of the business.”

https://www.forbes.com/sites/christopherbrookins/2020/08/27/fidelity-is-a-1000-pound-bitcoin-gorilla-in-the-making/#2ad3d804278f

 

 



[#] Wed Sep 02 2020 10:11:31 EDT from LoanShark

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difference is that the value is assigned by consensus rather than by a

government. I think that's ultimately a good thing because a

the consensus itself is an equilibrium subject to game-theoretic attacks

[#] Wed Sep 02 2020 10:13:16 EDT from LoanShark

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For now, though, Bitcoin is kind of like IPv6 -- everyone agrees it's

better, but no one is ready to fully commit to it yet, and that seems


"everyone"

[#] Wed Sep 23 2020 09:25:34 EDT from IGnatius T Foobar

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the consensus itself is an equilibrium subject to game-theoretic
attacks

Not disagreeing with that. But it's still better than a conventional fiat where someone can just decide to inflate the currency "because they can".