Is this still the AKB? Bitcoin question....if it is!

[The Spin Meister]

Don’t know if this is still the AKB but hope it is.

We appear to be entering a period of ongoing inflation. No one knows how long it will last or at what rate it will be but it seems to be here. This will be the first serious wave of inflation in decades. For a lot of people they have never lived through it. A whole new paradigm for many, if not most.

Bitcoin and other crypto’s didn’t exist last inflation cycle. No one knows how they will respond. Will they become a safe haven for Investors? Will they match or exceed the inflation rate? Is it a wise investment now?

This Inflation cycle appears to be a global event as prices are rising across the world so other currencies will likely suffer the same fate. Other currencies will not be a safe haven. And picking the right one is problematic.

Another issue to consider is that energy costs are accelerating rapidly. And crypto mining takes a huge amount of electricity making it more expensive to operate crypto mining facilities. If such mining slows down, will it make existing crypto more valuable? This could help crypto valuations exceed the global inflation rate.

What say you....AKB?

 

[Obliviax]

the other factor to consider is that crypto has worldwide access with worldwide appeal. As long as their govts allow internet access, the typical infrastructure problems that their nations present will no longer be there. And make no mistake, there is a lot of money in third-world nations like Columbia, Sudan, Yemen, and Kazakstan. So financial markets may have only been available to 10% of the world's population will now be open to 90% of the world's population. So crypto, like NFT's, will go up exponentially as a part of supply and demand.

 

[GreggK]

Don’t know if this is still the AKB but hope it is.

We appear to be entering a period of ongoing inflation. No one knows how long it will last or at what rate it will be but it seems to be here. This will be the first serious wave of inflation in decades. For a lot of people they have never lived through it. A whole new paradigm for many, if not most.

Bitcoin and other crypto’s didn’t exist last inflation cycle. No one knows how they will respond. Will they become a safe haven for Investors? Will they match or exceed the inflation rate? Is it a wise investment now?

This Inflation cycle appears to be a global event as prices are rising across the world so other currencies will likely suffer the same fate. Other currencies will not be a safe haven. And picking the right one is problematic.

Another issue to consider is that energy costs are accelerating rapidly. And crypto mining takes a huge amount of electricity making it more expensive to operate crypto mining facilities. If such mining slows down, will it make existing crypto more valuable? This could help crypto valuations exceed the global inflation rate.

What say you....AKB?

Regarding energy costs, it depends on which crypto you are talking about. Bitcoin of course, uses vast quantities, others however, like Ethereum are much greener. I currently have half of my money I have in crypto in each. With a little in Solana. Its also why I think there is a good case to be made for Ether taking over Bitcoin. Although there is a good case for Solana to take over Ether. But sometimes, the people decide.

 

[cvilleelkscoach]

Bitcoin, that’s the gold foil covered chocolate money right?

 

[PaoliLion]

Don’t know if this is still the AKB but hope it is.

We appear to be entering a period of ongoing inflation. No one knows how long it will last or at what rate it will be but it seems to be here. This will be the first serious wave of inflation in decades. For a lot of people they have never lived through it. A whole new paradigm for many, if not most.

Bitcoin and other crypto’s didn’t exist last inflation cycle. No one knows how they will respond. Will they become a safe haven for Investors? Will they match or exceed the inflation rate? Is it a wise investment now?

This Inflation cycle appears to be a global event as prices are rising across the world so other currencies will likely suffer the same fate. Other currencies will not be a safe haven. And picking the right one is problematic.

Another issue to consider is that energy costs are accelerating rapidly. And crypto mining takes a huge amount of electricity making it more expensive to operate crypto mining facilities. If such mining slows down, will it make existing crypto more valuable? This could help crypto valuations exceed the global inflation rate.

What say you....AKB?

Why would investing in bitcoin be any different than investing in Amazon or Kroger? As long as your debating what to invest in, debate the fundamentals of what would cause one investment to do better or worse under an inflationary environment

 

[The Spin Meister]

Only three responses. Guess the AKB is no longer the AKB! 😭😤😡

 

[PSUEngineer89]

Regarding energy costs, it depends on which crypto you are talking about. Bitcoin of course, uses vast quantities, others however, like Ethereum are much greener. I currently have half of my money I have in crypto in each. With a little in Solana. Its also why I think there is a good case to be made for Ether taking over Bitcoin. Although there is a good case for Solana to take over Ether. But sometimes, the people decide.

Can you explain what the value of Bitcoin is?

Why does Bitcoin have a value?

Serious question - I don't get it AT ALL.

 

[Elwood Blues]

Bitcoin is the world's biggest Ponzi scheme and/or the gimmick that will wreck the global economy and/or a sign of the End of Times. Haven't decided which, but want no part of it. It's fake and it will crash.

 

[PSUEngineer89]

Bitcoin is the world's biggest Ponzi scheme and/or the gimmick that will wreck the global economy and/or a sign of the End of Times. Haven't decided which, but want no part of it. It's fake and it will crash.

That's what I suspect, but I do not know. Very curious and perhaps Gregg will explain it.

 

[Noffinater]

I'll throw in my two satoshis on this...

Bitcoin, and crypto, very well might be just a fad. It's very possible 10 years from now we're reminiscing "Hey, remember 10 years ago when everyone was throwing away money on fake internet coins that you couldn't actually spend?"

It's also equally as conceivable that 10 years from now we'll all wish we bought more 10 years ago. I've been buying Bitcoin and a few other coins over the last couple years because I'm willing to lose that money to not be kicking myself 10 years from now if this thing keeps growing.

 

[Wandering Spectator]

I don’t doubt the technology behind it, but until Bitcoin is more widely accepted as a form of currency, I’ll continue to hold off. Until then, it does “look” like a ponzi scheme with early adopters getting rich off of the backs of the late adopters as prices rise.

It was originally know as the currency of criminals because it was widely accepted as a form of payment on the dark web. If you wanted to buy nefarious goods, that’s how you would pay. Stolen goods, drugs, hacking software, etc.

Once it does become more widely accepted, you can bet the Govt will be all over it to ensure they get their pound of flesh from it. It’s already starting.

 

[Noffinater]

early adopters getting rich off of the backs of the late adopters as prices rise.

The first time I heard about Bitcoin was in 2013 or 2014. This kid (early 20s at the time) at work was telling me about it and how I should get in on it. I always considered him sort of a f--- up and never really took him seriously, so when he tried to explain to me what it was I'm like "man that sounds like the biggest scam but good luck". Kid is a Bitcoin millionaire now and it kind of pisses me off.

 

[heckmans]

Bitcoin is the world's biggest Ponzi scheme and/or the gimmick that will wreck the global economy and/or a sign of the End of Times. Haven't decided which, but want no part of it. It's fake and it will crash.

Devil's advocate....if bitcoin is a ponzi scheme, how do you view the US dollar - a fiat currency with a govt/fed printing new dollars as fast as they can and devaluing all existing dollars? How will modeling our currency after Venezuela not wreck the global economy or cause the End of Times?

I'm no crypto expert, but I did stay at a Holiday Inn last night.
The US dollar used to be backed by gold. Printing more dollars meant putting more gold in reserve. That ended 50 years ago. Now the Govt prints more money at will(aka Quantitative Easing) and intentionally causing inflation to devalue the federal debt.
Conversely, there is a finite number of bitcoins. They cannot be mined forever. Once all of the bitcoins are mined, that is it..no more. As the value of the economy increases, the value of a bitcoin would increase. The blockchain(crypto) is what establishes value/trust, much like the gold standard used to. IMHO, bitcoin is no more ridiculous than our current fiat currency that only works because people trust it based on historical credibility that no longer exists.

 

[GreggK]

That's what I suspect, but I do not know. Very curious and perhaps Gregg will explain it.

(take everything I say with a grain of salt, I will do my best to explain things as I understand them)

So, here is the thing, I have studied it for awhile and I still can't fully explain the technology and I am not 100% sold on if I think it is a ponzi scheme or not. (its not a pozi scheme but could be a house of cards?) Which is why I would never put all my eggs in that basket. I do think there are legitimate reasons why it COULD be the future, although, there are good arguments why it won't.

Here is what I would say about money though, what makes paper money worth anything? Trust in the government that backs it? Trust of everyone deciding to play along and pretend it is worth something? Isn't that why anything is worth anything? Why is bitcoin different than anything else? So what makes Bitcoin worth anything is the belief of bitcoin owners that it is worth something and trust that the technology is sound.

Bitcoin runs on blockchain technology (not sure if that is the correct way to say it) but what block chain does make tampering or hacking impossible since all bitcoins are recorded on a digital ledger. So if someone tries to create a fake bitcoin, it will immediately be declared not real because it won't match on the ledgers of all of the other bitcoin owners.

Further, there is a set amount of Bitcoin that will ever exist, 21 million. So from the perspective of people that hate how the Fed can print money (I am not one of those people) they like that the government can never tamper with it. That is why it is compared to gold. Other cryptocurrencies have many more that will exist.

Further pros for bitcoin is that countries and industries are adopting bitcoin. There are very smart people who are betting on bitcoin and putting their money where their mouth is. It cuts out the middleman and really, bitcoin or something like it would make sense to become a global currency in an increasingly globalized world. And the fact that no country can rig it, seems to make sense to a lot of people.

Now, the arguments against. And first, I will touch on the last sentence above. Countries don't want a currency that they can't rig. I personally think being able to rig currencies, IE, print more money, is an important function. True, that can create inflation, but it can also prevent crashes. So one argument against, is that countries will not allow it it flourish, China being the most recent example.

Second, Warren Buffett thinks it is trash. I think Buffett is a brilliant man and he says to never invest in something which you don't understand. Well, with much research, I still don't fully understand bitcoin. Then again, maybe its like I understand how a railroad works, but I wouldn't understand how to fix a diesel engine.

Third, and I think this is a good reason, with quantum computing coming, and computers getting so much faster, any technology like bitcoin is based on could one day be rendered useless because computers left it in the dust.

Fourth, bitcoin uses a system that requires A LOT of energy usage. There are other cryto's that use far less energy if any at all. Unless that system of mining is changed or energy gets much greener much sooner, I think this will be a problem down the line. There are ways to get around that, but it seems for now, they are committed to mining.

Not sure if any of this is helpful or new.

 

[Steve G]

Devil's advocate....if bitcoin is a ponzi scheme, how do you view the US dollar - a fiat currency with a govt/fed printing new dollars as fast as they can and devaluing all existing dollars? How will modeling our currency after Venezuela not wreck the global economy or cause the End of Times?

I'm no crypto expert, but I did stay at a Holiday Inn last night.
The US dollar used to be backed by gold. Printing more dollars meant putting more gold in reserve. That ended 50 years ago. Now the Govt prints more money at will(aka Quantitative Easing) and intentionally causing inflation to devalue the federal debt.
Conversely, there is a finite number of bitcoins. They cannot be mined forever. Once all of the bitcoins are mined, that is it..no more. As the value of the economy increases, the value of a bitcoin would increase. The blockchain(crypto) is what establishes value/trust, much like the gold standard used to. IMHO, bitcoin is no more ridiculous than our current fiat currency that only works because people trust it based on historical credibility that no longer exists.

the statement "there is a finite number of bitcoins" is questionable. its is computer code which can always ne edited and altered. It is not subject to a regulatory/ administrative over sight as the US dollar is, while not backed by gold is "controlled" by the government. Bitcoin? Unclear who or what "regulates" bitcoin and how readily manipulated it is as computer code

 

[dbsteel]

If you have a few thousand to play around with and put into Crypto, do it. You are just missing out. It won't crash anytime soon. And when it goes way down, it comes way up. The next mining halving will be in 2024. IF it does what it always does during a halving, it could go over $200K. Don't put more than you can afford to lose. Would I put my life savings into it? Heck no. But I'm probably up 2000 percent in 4 years.

When it comes down to it, the Dollar value is a Ponzi scheme.

 

[PSUEngineer89]

(take everything I say with a grain of salt, I will do my best to explain things as I understand them)

So, here is the thing, I have studied it for awhile and I still can't fully explain the technology and I am not 100% sold on if I think it is a ponzi scheme or not. (its not a pozi scheme but could be a house of cards?) Which is why I would never put all my eggs in that basket. I do think there are legitimate reasons why it COULD be the future, although, there are good arguments why it won't.

Here is what I would say about money though, what makes paper money worth anything? Trust in the government that backs it? Trust of everyone deciding to play along and pretend it is worth something? Isn't that why anything is worth anything? Why is bitcoin different than anything else? So what makes Bitcoin worth anything is the belief of bitcoin owners that it is worth something and trust that the technology is sound.

Bitcoin runs on blockchain technology (not sure if that is the correct way to say it) but what block chain does make tampering or hacking impossible since all bitcoins are recorded on a digital ledger. So if someone tries to create a fake bitcoin, it will immediately be declared not real because it won't match on the ledgers of all of the other bitcoin owners.

Further, there is a set amount of Bitcoin that will ever exist, 21 million. So from the perspective of people that hate how the Fed can print money (I am not one of those people) they like that the government can never tamper with it. That is why it is compared to gold. Other cryptocurrencies have many more that will exist.

Further pros for bitcoin is that countries and industries are adopting bitcoin. There are very smart people who are betting on bitcoin and putting their money where their mouth is. It cuts out the middleman and really, bitcoin or something like it would make sense to become a global currency in an increasingly globalized world. And the fact that no country can rig it, seems to make sense to a lot of people.

Now, the arguments against. And first, I will touch on the last sentence above. Countries don't want a currency that they can't rig. I personally think being able to rig currencies, IE, print more money, is an important function. True, that can create inflation, but it can also prevent crashes. So one argument against, is that countries will not allow it it flourish, China being the most recent example.

Second, Warren Buffett thinks it is trash. I think Buffett is a brilliant man and he says to never invest in something which you don't understand. Well, with much research, I still don't fully understand bitcoin. Then again, maybe its like I understand how a railroad works, but I wouldn't understand how to fix a diesel engine.

Third, and I think this is a good reason, with quantum computing coming, and computers getting so much faster, any technology like bitcoin is based on could one day be rendered useless because computers left it in the dust.

Fourth, bitcoin uses a system that requires A LOT of energy usage. There are other cryto's that use far less energy if any at all. Unless that system of mining is changed or energy gets much greener much sooner, I think this will be a problem down the line. There are ways to get around that, but it seems for now, they are committed to mining.

Not sure if any of this is helpful or new.

the statement "there is a finite number of bitcoins" is questionable. its is computer code which can always ne edited and altered. It is not subject to a regulatory/ administrative over sight as the US dollar is, while not backed by gold is "controlled" by the government. Bitcoin? Unclear who or what "regulates" bitcoin and how readily manipulated it is as computer code

I like the line of questioning around "what makes the dollar worth anything" - only our joint agreement to all say that the paper represents goods and services of value.

Now, when you say there are only 21 million bitcoins, can I assume the vast majority of them are still "buried in the digital gold mine somewhere", and only a few have been "mined"?

This is a separate question from whether more could be "created".

 

[MikeyBeeBop]

the statement "there is a finite number of bitcoins" is questionable. its is computer code which can always ne edited and altered. It is not subject to a regulatory/ administrative over sight as the US dollar is, while not backed by gold is "controlled" by the government. Bitcoin? Unclear who or what "regulates" bitcoin and how readily manipulated it is as computer code

Everything is public record with Bitcoin. There will only ever be 21 million bitcoin. The code is public record and you can see for yourselves.

Think of bitcoin as digital gold and regular gold as analog.

Bitcoin Whitepaper

 

[GreggK]

I like the line of questioning around "what makes the dollar worth anything" - only our joint agreement to all say that the paper represents goods and services of value.

Now, when you say there are only 21 million bitcoins, can I assume the vast majority of them are still "buried in the digital gold mine somewhere", and only a few have been "mined"?

This is a separate question from whether more could be "created".

There are currently almost 19 million mined, however, they become harder and harder to mine as time goes on. So the estimate when the final bitcoin would be mined is 2140. No idea if that takes into account how much faster computers will be by then. Or if civilization or money will exist!

 

[slykens]

Bitcoin and other crypto’s didn’t exist last inflation cycle. No one knows how they will respond. Will they become a safe haven for Investors? Will they match or exceed the inflation rate? Is it a wise investment now?

My opinion is that bitcoin will be viewed as a store of value as inflation increases. I wouldn't call it safe, per se, but I believe it will match or beat inflation. I've read plenty of people thinking the same and some others who don't believe that will happen.

Why does Bitcoin have a value?

Why does the USD have value? Because people agree it has value. Works the same for bitcoin, only bitcoin doesn't have a multi-trillion dollar military to back it up.

It was originally know as the currency of criminals because it was widely accepted as a form of payment on the dark web. If you wanted to buy nefarious goods, that’s how you would pay. Stolen goods, drugs, hacking software, etc.

Which was very short sighted and demonstrated a fundamental lack of understanding of how blockchain and government investigators work.

From a traceability standpoint, blockchain is an investigator's wet dream. It is a fully public, immutable, tamper-proof record of transactions. The IRS, with its overly broad and extrajudicial powers, has served crypto exchanges with "John Doe" summonses, summonses that don't require judicial approval and since they're generic no one has standing to challenge, to acquire full customer lists from crypto exchanges - once they have your wallet address and name they can now match every transaction you've engaged in on the blockchain. Ross Ulbricht, the Silk Road guy, was sentenced to life in prison without possibility of parole for running Silk Road. He thought it was all anonymous too and is now paying that price.

 

[slykens]

Now, when you say there are only 21 million bitcoins, can I assume the vast majority of them are still "buried in the digital gold mine somewhere", and only a few have been "mined"?

There's been about 19 million of the 21 million potential coins mined already.

The reward for mining halves every 210,000 blocks, around every four years. It started at 50 bitcoin per block and is now 6.25 bitcoin per block. Between March and May 2024 it is expected to halve again to 3.125 bitcoin per block. Each halving event has been followed by a significant increase in bitcoin value. There are some who suggest it represents a cycle with the next cycle speculated to peak around $1 million per bitcoin. Bitcoin mining will exhaust the supply in 2140.

I am bullish on crypto but only with speculative money. I mentioned here over the summer about working on building a mining hosting facility but have pivoted that plan to just straight up mining. The numbers, from a conservative estimation, look like a scam but are real. Fortunately I am working with a partner who I've had financial dealings with for a long time so there's some trust baked in. I would be reluctant to take the mining plan to an investor as I feel like I'd be laughed out of the room.

 

[PSUEngineer89]

Great replies, guys.

 

[heckmans]

I don’t doubt the technology behind it, but until Bitcoin is more widely accepted as a form of currency, I’ll continue to hold off. Until then, it does “look” like a ponzi scheme with early adopters getting rich off of the backs of the late adopters as prices rise.

It was originally know as the currency of criminals because it was widely accepted as a form of payment on the dark web. If you wanted to buy nefarious goods, that’s how you would pay. Stolen goods, drugs, hacking software, etc.

Once it does become more widely accepted, you can bet the Govt will be all over it to ensure they get their pound of flesh from it. It’s already starting.

I'll say this - if you have investments...if you have savings to spare, you'd be insane not to take $1, 2, 5K at a minimum and buy crypto as a hedge. If you have a paypal account, you can login and buy bitcoin and a couple other cryptos very easily.
The sh*t being done by the govt with regard to spending and currency printing has no precedence in this country. The US is only able to deficit spend like it does because the dollar is the world's reserve currency and other countries buy our debt. There is desire by other countries like China and Russia to diminish/remove the US dollar as the world's dominant reserve currency. The day that happens, we are Greece and we are completely F'd. Hard Assets and alternative currencies (euros, crypto, etc) will be essential.

 

[GreggK]

Great replies, guys.

In the end, there are very smart people who advocate for and against cryto. Try to understand it and see where you fall.

 

[heckmans]

the statement "there is a finite number of bitcoins" is questionable. its is computer code which can always ne edited and altered. It is not subject to a regulatory/ administrative over sight as the US dollar is, while not backed by gold is "controlled" by the government. Bitcoin? Unclear who or what "regulates" bitcoin and how readily manipulated it is as computer code

So your concern is that you don't trust those that created bitcoin. Perhaps you don't understand how/why the code could not be manipulated to create an infinite number of bitcoins

Again, I don't claim to be a crypto expert, but the concern you have on Bitcoin has already been vastly blown out of the water by our govt on the dollar. You seem to suggest that politicians "controlling" the currency is a good thing. They have done nothing but steal from the citizenry through their efforts. In the last 100 years, their "regulation" and "control" has devalued the dollar by 94%. $1 in 1921 is worth 6 cents today. Inflation is not guaranteed nor a good thing. A govt printing money steals from the citizens that save. That this happens just a little every year does not diminish what it does in the aggregate.
The whole point of crypto is that it cannot be "manipulated" by politicians. Precious metals are rare and so they hold inherent value and can be used by people to trade them for other things of value. Crypto essentially is a decentralized bartering platform that the people own, like precious metals. The limited number is what provides the value. If manipulating the code could be done to create more bitcoins, it would have been done by now. The motive created by the current price is massive.
I don't mean this in a derogatory way, but no one should confuse your lack or confidence/understanding in crypto as a reason to be skeptical about it. Everything I said should also be taking with a grain of salt, at least on the crypto piece - the US dollar stuff is spot on.

 

[heckmans]

Don’t know if this is still the AKB but hope it is.

We appear to be entering a period of ongoing inflation. No one knows how long it will last or at what rate it will be but it seems to be here. This will be the first serious wave of inflation in decades. For a lot of people they have never lived through it. A whole new paradigm for many, if not most.

Bitcoin and other crypto’s didn’t exist last inflation cycle. No one knows how they will respond. Will they become a safe haven for Investors? Will they match or exceed the inflation rate? Is it a wise investment now?

This Inflation cycle appears to be a global event as prices are rising across the world so other currencies will likely suffer the same fate. Other currencies will not be a safe haven. And picking the right one is problematic.

Another issue to consider is that energy costs are accelerating rapidly. And crypto mining takes a huge amount of electricity making it more expensive to operate crypto mining facilities. If such mining slows down, will it make existing crypto more valuable? This could help crypto valuations exceed the global inflation rate.

What say you....AKB?

Slightly OT, but a good article on monetary policy driven inflation.

Since 2008, Monetary Policy Has Cost American Savers about $4 Trillion | Mises Institute

After thirteen years with on average negative real returns to conservative savings, it is time to require the Federal Reserve to address its impact on savers.

mises.org

 

[Steve G]

So your concern is that you don't trust those that created bitcoin. Perhaps you don't understand how/why the code could not be manipulated to create an infinite number of bitcoins

Again, I don't claim to be a crypto expert, but the concern you have on Bitcoin has already been vastly blown out of the water by our govt on the dollar. You seem to suggest that politicians "controlling" the currency is a good thing. They have done nothing but steal from the citizenry through their efforts. In the last 100 years, their "regulation" and "control" has devalued the dollar by 94%. $1 in 1921 is worth 6 cents today. Inflation is not guaranteed nor a good thing. A govt printing money steals from the citizens that save. That this happens just a little every year does not diminish what it does in the aggregate.
The whole point of crypto is that it cannot be "manipulated" by politicians. Precious metals are rare and so they hold inherent value and can be used by people to trade them for other things of value. Crypto essentially is a decentralized bartering platform that the people own, like precious metals. The limited number is what provides the value. If manipulating the code could be done to create more bitcoins, it would have been done by now. The motive created by the current price is massive.
I don't mean this in a derogatory way, but no one should confuse your lack or confidence/understanding in crypto as a reason to be skeptical about it. Everything I said should also be taking with a grain of salt, at least on the crypto piece - the US dollar stuff is spot on.

cannot be manipulated y politicians but a "new coin" system can be programmed up and launched pretty much every day. How many different coins currently available? There are not really "only" 21 million bitcoins as soon as someone makes new program and new coin they can 21 million HeckmanCoins and someone else 21 million SteveGcoins and on and on and on. So the supply of crypto currency is infinite\

And its computer software to say cannot be hacked or manipulated without the masses knowing is not realistic assessment of the abilities of programmers/ hackers

 

[Petch]

So your concern is that you don't trust those that created bitcoin. Perhaps you don't understand how/why the code could not be manipulated to create an infinite number of bitcoins

Again, I don't claim to be a crypto expert, but the concern you have on Bitcoin has already been vastly blown out of the water by our govt on the dollar. You seem to suggest that politicians "controlling" the currency is a good thing. They have done nothing but steal from the citizenry through their efforts. In the last 100 years, their "regulation" and "control" has devalued the dollar by 94%. $1 in 1921 is worth 6 cents today. Inflation is not guaranteed nor a good thing. A govt printing money steals from the citizens that save. That this happens just a little every year does not diminish what it does in the aggregate.
The whole point of crypto is that it cannot be "manipulated" by politicians. Precious metals are rare and so they hold inherent value and can be used by people to trade them for other things of value. Crypto essentially is a decentralized bartering platform that the people own, like precious metals. The limited number is what provides the value. If manipulating the code could be done to create more bitcoins, it would have been done by now. The motive created by the current price is massive.
I don't mean this in a derogatory way, but no one should confuse your lack or confidence/understanding in crypto as a reason to be skeptical about it. Everything I said should also be taking with a grain of salt, at least on the crypto piece - the US dollar stuff is spot on.

Yep…and every time the government creates a trillion dollar “infrastructure“ plan, that is just more money being printed, resulting in diluted spending power of our existing savings.

 

[heckmans]

cannot be manipulated y politicians but a "new coin" system can be programmed up and launched pretty much every day. How many different coins currently available? There are not really "only" 21 million bitcoins as soon as someone makes new program and new coin they can 21 million HeckmanCoins and someone else 21 million SteveGcoins and on and on and on. So the supply of crypto currency is infinite\

And its computer software to say cannot be hacked or manipulated without the masses knowing is not realistic assessment of the abilities of programmers/ hackers

So we can just sum this up by saying that your strong skepticism about crypto currency is that, well into the future, it MIGHT have happen to it, what the US govt has already done intentionally to the US Dollar to advance political goals.

 

[Cosmos]

cannot be manipulated y politicians but a "new coin" system can be programmed up and launched pretty much every day. How many different coins currently available? There are not really "only" 21 million bitcoins as soon as someone makes new program and new coin they can 21 million HeckmanCoins and someone else 21 million SteveGcoins and on and on and on. So the supply of crypto currency is infinite\

And its computer software to say cannot be hacked or manipulated without the masses knowing is not realistic assessment of the abilities of programmers/ hackers

Nice retort. I will also add the dollar has the backing of a government behind it whereas as Bitcoin and other cryptos do not. Why is that important. Because the power of a government, any government, resides in its taxing authority. Bitcoin doesn't have that. It's like a naked man standing alone on a street corner.

If you want a crystal ball as to where cryptos will be post-inflationary bubble then I've some night stand reading recommendations. Read up on the following subjects: the Dutch Tulip Craze, Beanie Babies and the California Gold Rush. And for an understanding of how we got here read The Battle of Bretton Woods.

 

[LionDeNittany]

Don’t know if this is still the AKB but hope it is.

We appear to be entering a period of ongoing inflation. No one knows how long it will last or at what rate it will be but it seems to be here. This will be the first serious wave of inflation in decades. For a lot of people they have never lived through it. A whole new paradigm for many, if not most.

Bitcoin and other crypto’s didn’t exist last inflation cycle. No one knows how they will respond. Will they become a safe haven for Investors? Will they match or exceed the inflation rate? Is it a wise investment now?

This Inflation cycle appears to be a global event as prices are rising across the world so other currencies will likely suffer the same fate. Other currencies will not be a safe haven. And picking the right one is problematic.

Another issue to consider is that energy costs are accelerating rapidly. And crypto mining takes a huge amount of electricity making it more expensive to operate crypto mining facilities. If such mining slows down, will it make existing crypto more valuable? This could help crypto valuations exceed the global inflation rate.

What say you....AKB?

Bitcoin should be compared with Gold and not currency.

Ethereum should be compared with pipeline assets or a shipping channel / canal asset. Ethereum is the network most altcoins operate on.

Both will become more valuable with inflation in line with inflation.

Ethereum will drop in value if and when there is less shipping (in this case Altcoins)

LdN