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Blockchain Tech and Cryptocurrencies

This is just a giant, well run Ponzi scheme. Why would legal businesses accept payment in "currencies" that can have 5-15% volatility in the day of a purchase? How can a business be viable if they sell something at 9AM for $100 in crypto that becomes worth $90 by the time they make their bank deposit?

Because more often it's worth $110?
 
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Because more often it's worth $110?

It went from $20K to about $5500. It has gone from $12K to $10K over the past two weeks.

"In 2017 bitcoin's acceptance among major online retailers included three out of the top 500 online merchants, down from five in 2016. "

I guess the 497 major online retailers are as crazy as I am...
 
This is just a giant, well run Ponzi scheme. Why would legal businesses accept payment in "currencies" that can have 5-15% volatility in the day of a purchase? How can a business be viable if they sell something at 9AM for $100 in crypto that becomes worth $90 by the time they make their bank deposit?
Ugh, I don't want to spend too much time responding to this because we've addressed many of these issues before. You are correct - currently, bitcoin and other cryptocurrencies are very bad for transactional payments. This is a result of the fluctuation but also things such as transaction volume limits, processing speed, chargebacks/refunds, etc.

But two main points: 1) Bitcoin and all cryptocurrencies are still in their infancy. This technology is less than 10 years old and people are expecting it to replace fiat currency? That's ridiculous. Understand the technology and the potential but be realistic. 2) The goal or optimal use of many of these cryptoassets/cryptocurrencies isn't for shopping online at Walmart. The bull case for Bitcoin now often resides around it's ability to replace gold. Many others have applicability for cross-border payments or fully private payments.

And many of the companies aren't actually cryptocurrencies but cryptoassets, where their tokens have utilization value in payment for a future service on that network or may represent ownership in a company or organization.

Long story short, RJ, you're evaluation (while correct) is of one specific use case at a very immature time for the technology.
 
I am actually fully divested from all crypto.

Primary reason is I'm closing on a house next week. Secondary motivation is I believe the majority of the market is still bloated, and a correction is imminent. Still long-term bullish on crypto in general but believe there will be a better point to selectively buy in.
 
Ugh, I don't want to spend too much time responding to this because we've addressed many of these issues before. You are correct - currently, bitcoin and other cryptocurrencies are very bad for transactional payments. This is a result of the fluctuation but also things such as transaction volume limits, processing speed, chargebacks/refunds, etc.

But two main points: 1) Bitcoin and all cryptocurrencies are still in their infancy. This technology is less than 10 years old and people are expecting it to replace fiat currency? That's ridiculous. Understand the technology and the potential but be realistic. 2) The goal or optimal use of many of these cryptoassets/cryptocurrencies isn't for shopping online at Walmart. The bull case for Bitcoin now often resides around it's ability to replace gold. Many others have applicability for cross-border payments or fully private payments.

And many of the companies aren't actually cryptocurrencies but cryptoassets, where their tokens have utilization value in payment for a future service on that network or may represent ownership in a company or organization.

Long story short, RJ, you're evaluation (while correct) is of one specific use case at a very immature time for the technology.

I said nothing about them replacing fiat currencies.

You also aren't taking into consideration that the long-term possibilities are that these "currencies" could be banned by nations. This would make the "currencies" valueless in cross border payments or being seen as an asset in ownership of the companies.

This is a cute game, but it's more dangerous to "investors" long-term than immediately. You can pump and dump the "currencies" quickly, but what if there is an international attack on them?
 
I said nothing about them replacing fiat currencies.

You also aren't taking into consideration that the long-term possibilities are that these "currencies" could be banned by nations. This would make the "currencies" valueless in cross border payments or being seen as an asset in ownership of the companies.

This is a cute game, but it's more dangerous to "investors" long-term than immediately. You can pump and dump the "currencies" quickly, but what if there is an international attack on them?

You asked why would businesses accept cryptocurrencies, as opposed to fiat currency. So I discussed why a replacement to fiat currency isn't the optimal or often targeted use case.

But I'll play with these new goal posts.

First off, most countries have shown an open and willingness to work with cryptocurrencies. Some because they want to encourage new business growth (e.g., Canada, U.S.), some because their people want to be able to use it (South Korea), some because they see it as a potential economic and political advantage (Russia) and some just because they don't believe they'd actually be able to control or ban it. The only country that has tried to ban or control it is China and even with controlling the internet, their efforts haven't been too successful.

Second, I would be interested RJ in how a country would ban a cryptocurrency? What would that entail? Would they ban access to wallets? Would they force banks not to allow payments to wallets or exchanges? Would they ban all crypto ATMs and make them illegal to run? Would they just make it a crime for anyone to hold cryptocurrency?
 
You hit some of them. Hell, in most states with legal pot (medical or recreational), you have to pay with cash. You can't use a check or credit cards and that's for something the state supports. If countries decide cryptocurrencies are for illegal activities, they can ban their use. Absolutely they can ban the ATMs and any ATMs that allow transactions.

Here's a question for you (because I don't know), do Bitcoin and the other brands report capital gains in use of the currencies to tax departments of the countries? I would be surprised if they did. First of all, it's sort of against the underlying principal.

Secondly, it would be unbelievably expensive. Let's say I bought a bitcoin for $10,000. A month later I buy something with a piece of that bitcoin that is now worth 20% more than when I bought the bitcoin. I have clearly made income that should be reported to the IRS. Is it? If it isn't everyone who makes a profit and uses cryptocurrency is committing tax evasion. How much would it cost these entities to report all of this in real time and for every transaction and to every government that has income taxes?

I'd hazard a guess that all the cryptocurrencies that don't report these profits will be guilty of conspiracy to commit tax fraud or complicity in it.

I'm sure there will be many other issues. But these are low-hanging fruit.
 
You hit some of them. Hell, in most states with legal pot (medical or recreational), you have to pay with cash. You can't use a check or credit cards and that's for something the state supports. If countries decide cryptocurrencies are for illegal activities, they can ban their use. Absolutely they can ban the ATMs and any ATMs that allow transactions.

Here's a question for you (because I don't know), do Bitcoin and the other brands report capital gains in use of the currencies to tax departments of the countries? I would be surprised if they did. First of all, it's sort of against the underlying principal.

Secondly, it would be unbelievably expensive. Let's say I bought a bitcoin for $10,000. A month later I buy something with a piece of that bitcoin that is now worth 20% more than when I bought the bitcoin. I have clearly made income that should be reported to the IRS. Is it? If it isn't everyone who makes a profit and uses cryptocurrency is committing tax evasion. How much would it cost these entities to report all of this in real time and for every transaction and to every government that has income taxes?

I'd hazard a guess that all the cryptocurrencies that don't report these profits will be guilty of conspiracy to commit tax fraud or complicity in it.

I'm sure there will be many other issues. But these are low-hanging fruit.

You might want to read up on BTC a bit. You thinking that bitcoin is an entity means you don't understand the most basic thing about crypto.
 
It doesn't matter how they like to structure themselves now. If they become a serious market player, BTC will be forced into acting like everyone else or driven from the market.

One thing you can take to the bank is that when you can use bitcoin at McDonald's that tax agencies around the world will want their cut. BTC can cry all they like and try to explain their business model all they like, but the taxman gets his.
 
there is literally 0% chance he reads that or could comprehend it.
 
It doesn't matter how they like to structure themselves now. If they become a serious market player, BTC will be forced into acting like everyone else or driven from the market.

One thing you can take to the bank is that when you can use bitcoin at McDonald's that tax agencies around the world will want their cut. BTC can cry all they like and try to explain their business model all they like, but the taxman gets his.
Who is they? Who is BTC?

Oh, do you mean Satoshi Nakamoto?
 
Any "asset" you sell for more than you bought it for creates income which the IRS (and other tax agencies around the world) will want their cut. Since it is "decentralized", where do those records exist?

Every transaction you engage in has this problem. It doesn't matter if you are paying for product/service or simply selling your asset.

Nothing in that article shows how this will happen. In fact, the system appears to be set-up to avoid this happening.
 
dawg there's a complete record of every bitcoin transaction ever that's completely open for anyone to see
 
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