Can bitcoin replace the U.S. dollar as a reserve currency

Discussion in 'Stock Market Today' started by Rustic1, Feb 8, 2021.

  1. StockJock-e

    StockJock-e Brew Master
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    Cramer going long Bitcoin as a store of value is so weird.

    Bitcoin is not guaranteed to keep on going up, the argument that its better to park your money in bitcoin vs cash because its better implies that there is no way to lose money.

    Bitcoin has had -50% moves in the past.
     
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  2. Rustic1

    Rustic1 Well-Known Member

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    Me going long is even more weird. LOL.

    Noticing more and more embrace it, like any asset it will fluctuate. It has never had this many join the ship. These are high caliber players not just a bunch of reddit traders.

    If if dips 50% I will add more. Its not going away and is becoming widely accepted.
     
  3. roadtonowhere08

    roadtonowhere08 Active Member

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    I understand the significance of blockchain technology and what it means for the future, but at what point is this more capitulation of a speculative asset instead of a wholehearted embrace of the future of currency? I never hear people mention it as a legitimate currency. I only hear about it's daily price and where it will be in the future. That means people only want to profit off of it. Nobody does that with state backed currency unless you are one of those crazy currency traders.

    It's easy for places to accept bitcoin as a payment (as they want your money in whatever form they can get it), but let's see them actually purchase it as one of their holdings. It remains to be seen whether Tesla is going to hold long term or cash in that nice profit they recently made.

    As for me: I think the whole concept of bitcoin and mining it is bullshit. It is a "currency" based on nothing and backed by nothing. Nobody can buy a decent GPU anymore. Electricity is being wasted. It's bullshit.
     
  4. Rustic1

    Rustic1 Well-Known Member

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    You just described the U.S. dollar " fiat currency" to a T. Its backed only by a promise to repay and history well documents that all have failed at some point in time.

    I trade FOREX
     
  5. Rustic1

    Rustic1 Well-Known Member

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    More and more are getting involved. Just another bubble?
    Screenshot_20210211-144146_Webull.jpg Screenshot_20210211-144208_Webull.jpg Screenshot_20210211-144248_Webull.jpg
     
  6. StockJock-e

    StockJock-e Brew Master
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    Bitcoin is officially mainstream.
     
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  7. roadtonowhere08

    roadtonowhere08 Active Member

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    Be that as it may, the United States economy backs up the dollar. That's not going anywhere anytime soon.

    What about bitcoin?

    There is no getting around that this is an apples to oranges comparison.

    And FOREX makes you crazy :lauging:
     
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  8. StockJock-e

    StockJock-e Brew Master
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    Thats fine, as long as people realize its not a bank account that will retain your wealth.

    Being widely accepted is the other issue. BTC is expensive as hell to transact with fees ranging from $10-$50.

    Nobody buying a $5 starbucks coffee with bitcoin!
     
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  9. turtle957

    turtle957 Member

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    Yeah, it consumes so much electricity it's insane. Just waiting for the first country to announce a carbon emissions tax on it lol...see ya, Bitcoin value!
     
  10. hitman

    hitman Active Member

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    Bitcoin can't and will never replace the US$, what one should ask will the USofA start their own crypto to replace the US$ which will create global chaos.
     
  11. roadtonowhere08

    roadtonowhere08 Active Member

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    I think that will be a definite reality. I am betting a sort of arms race with each major country jockeying for influence with their own cryptocurrency.
     
  12. StockJock-e

    StockJock-e Brew Master
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    Im not sure a USD stable coin from the Federal reserve backed 1:1 would be any different from how things are now.

    I rarely have cash on me, I never touch cash, never need cash. I tap my phone or credit cards to pay for stuff.

    Might as well all be on the blockchain already.
     
  13. roadtonowhere08

    roadtonowhere08 Active Member

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    That's true. Then I really do not see the point of bitcoin except for profit motive and off the books and/or illegal monetary moves. Criminals LOVE bitcoin.
     
  14. hitman

    hitman Active Member

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    I find it hilarious that the popular discussions is always about bitcoin and $YFI was slowly creeping up on bitcoin and now over took bitcoin. $YFI 49,600 compare to $BTC 47,800
     
  15. T0rm3nted

    T0rm3nted Moderator
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    Ironically though, if there was a US-based regulated cryptocurrency that was basically 1:1 the USD, like a debit card as @StockJock-e mentioned, criminals would go back to loving CASH as the only way to make illegal monetary moves.
     
  16. StockJock-e

    StockJock-e Brew Master
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    I can give you some examples.

    With paypal, venmo and cashapp, its no problem sending money as long as the person you are sending to has those apps, and they are permitted in their country.

    I have friends and family in countries where those apps do not exist. Paypal is usually a good bet, but there are fees.

    If I wanted to send you $5, it makes no sense because of the high fees.

    Blockchain technologies (Im not saying specifically bitcoin) allow you to transact with anybody without using the banking system. If I want to send a $1 tip to somebody across the world, I can using BCH which has a fee of $0.002.

    I can send you 50c right now, you would get it instantly.
     
  17. roadtonowhere08

    roadtonowhere08 Active Member

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    Fair point.

    I do think that we are in a bit of a Wild West era right now with blockchain, and you can bet your butt that those with power are going to want a piece of the action. It will be quite the struggle between the "open source" (if you will) proponents of blockchain technology and the ones who want to monetize and regulate it for their own benefit.
     
  18. ResponsibleYogurt300

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    Oh man I was thinking the same thing! I bet not many people have heard of tulip mania. It's still hard to believe that someone paid that much for a tulip!
     
  19. StockJock-e

    StockJock-e Brew Master
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    Many of the young ones have not, but many of the older ones have and also know that tulip mania went on a full 4yrs before crashing.

    Bitcoin has been going over a decade.

    No two bubbles are ever the same, but you have to admit that this one keeps going!
     
  20. StockJock-e

    StockJock-e Brew Master
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    Well, we have already seen major financial institutions take positions in Bitcoin.

    China has been rumored to want their own official currency blockchain for a while.

    The US Fed has likely investigated this too. It makes sense of a government to like blockchain since they can track every single transaction you make!

    The irony is that the thing which was supposed to give you privacy can be used to track every single cent you spend!
     
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