Crypto currency

It's not so much an argument. Some people simply think crypto is a better store of cash than the USD at the moment which is devaluing due to Biden printing money - a policy I personally agree with, but doesn't help the USD. As mentioned by Pepe, people in developing countries don't want to see savings dwindle due to American policy decisions.

I will argue however that the USD with all the efforts and political horse-trading to make it the worlds pre-eminent currency has a much higher carbon footprint than crypto.

 

I have converted back what I invested - what is left is pure profit. I traded everything that was left into NEO (a Chinese project) several months ago - I have set a target of NEO hitting USD154 per coin to cash that out (don't ask me why - just a random number I chose). Many analysts are predicting it will go way higher than that if Neo3 is launched successfully next month, but I'll be happy with that number.

As for interacting with HKD or CNY, the simple answer is that it doesn't. However, it is easy to trade in and out of HKD using Binance's P2P function with no fees. Took me 5 mins to learn it and it's fantastic!

 

I do get the point, and I totally see that Biden's stimulus policy is bound to affect the value of the dollar, and hence the value of savings and other assets which people have that are linked to it. But at the end of the day that fluctuation in value can only be marginal, because the dollar has to be underwritten by the US government, not least in order to preserve it's international credit rating and hence it's ability to borrow. Perhaps I'm being a bit dense here, but the cryptocurrencies are underwritten by no-one, surely? Being old-fashioned, I can't see that as anything other than very risky?

 

It has a constantly moving exchange rate just as GBP will against all other foreign currencies. The easiest way to conceptualise it is simply as having another foreign fiat currency in your wallet; it’s value will fluctuate against all of the other world currencies over time.

Or if it’s easier think of it as a commodity like oil - same principle applies - it’s consensus that a barrel of oil is primarily communicated in dollars but clearly it fluctuates in lockstep against Sterling, Euro, Yen etc. It’s just that an intermediate step is required in currencies other than the dollar to convert your Bitcoin to a cryptocurrency tethered to the value of the dollar before you withdraw to your bank account of whatever nation you’re residing in.

 

I understand less about cryptocurrencies than when I started reading this thread....

 

It’s obviously something you have to be tech savvy in which rules me out , until you can buy beer with it

 

I know that you’re right, and there is a real difference, between crypto and B of E currency.
But there’s also no such thing as money. It’s just digital debt underwritten by the government. Bank notes are just a promise to pay, and we stopped linking the £ to actual bullion years ago.

 

Not directly crypto related but interesting statement from Biden yesterday. 1

 

Clearly means “a single penny more” but yes an amusing slip of the tongue.

 

Have any of you used, or are you aware of, Uniswap? Decentralised exchange. Version 3 launches today which is big news in the Ethereum ecosystem.

 

How do you trade money in and out of these currencies, given that most banks appear not to permit dealings with them?

 

Through an exchange like Coinbase or Binance usually. You can then withdraw to your own wallet if you prefer or keep it in the wallet ok the exchange.

Nothing to do with traditional banks at all. You usually purchase the currency as a debit card transaction.

 

Isnt the price still USD , and is used to determine how much you have to pay in bitcoin.
You dont get a cheaper/expensive car if the price fluctuates of bitcoin in USD terms.

The technology of itself is very interesting.

I do believe there are more cryptocurrencies than actual fiat currencies these days.

 

Currently, yes. I expect that will change in the future though.

 

You can pay in most major currencies, but it's price is also set against other cryptos.

 

Would never give financial advice but be really careful trading Dogecoin. That coin really is just a 'meme' coin- a sort of in-joke. It's already had meteoric rises recently. It may make money but a very risky move.

 

Indeed. An extremely risky investment. I know multiple people that know nothing about crypto that have bought in recently and basically doubled or more their money in less than a month, that are convinced it's going to make them a fortune if they just hold. It's all going to end in tears.