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Re: Embattled Crypto Exchange FTX Files for Bankruptcy

By: Zimbler0 in 6TH POPE | Recommend this post (0)
Sat, 12 Nov 22 11:47 PM | 31 view(s)
Boardmark this board | 6th Edition Pope Board 		Msg. 37371 of 60008
(This msg. is a reply to 37368 by Decomposed)
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Decomposed > but I do know that if it were possible to debase bitcoin, somebody would have debased it to zero and cashed in to the tune of many hundreds of billions of dollars by now.


Are you SURE that that isn't what is going on right now?

But I think one of the points I was trying to make is that a currency useful for commerce should NOT have big swings in its value.

Zim.




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The above is a reply to the following message:
Re: Embattled Crypto Exchange FTX Files for Bankruptcy
By: Decomposed in 6TH POPE
Sat, 12 Nov 22 11:38 PM 		Msg. 37368 of 60008

Zimbler0:

Re: “Let's say you bought a 'crypto-buck' for $1,000. And two weeks later it is going for, say, $800. Was it debased?”"Debased," in the currency sense, means counterfeited, usually by the originating authority. This happens most days with dollars and euros.

But loss of buying power is often for other reasons. In the most extreme case, there could be a war that undermines confidence in a country's currency. It could fall all the way to zero with NO debasement having occurred. A currency could also be as healthy as a horse but still fall in price because confidence in competing currencies RISES. No debasement happens, but investors would rather be in something else.

Currencies are commodities. Like all commodities, the value assigned them by markets changes hourly.

But that's not debasement.

Bitcoin has dropped from more than $60,000 to the current $16,775 in about one year. That's horrific. But it's not possible to debase it because there is no issuing authority, the code behind it is published, and anybody who knows math can look at it and explain why the bitcoin blockchain is secure. I'm not such a person, but I do know that if it were possible to debase bitcoin, somebody would have debased it to zero and cashed in to the tune of many hundreds of billions of dollars by now.






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