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RE: Bitcoin, John McAfee, The story of the Sultan and his Flying Horse and why we should pay attention to Warren Buffett
He either does not understand what blockchain technology means for mankind, or he has selfish motives for hating on crypto.
I think it may be both. He is holding stocks that are currently worth billions of dollars. But if the dollar collapses because some crypto replaces it, he might loose 80% of his wealth before he realises and reacts accordingly.
Fiat money only has any worth as long as people believe in it. The intrinsic value is ZERO. Same with most cryptos, but not STEEM. STEEM has a whole ecosystem using and depending on it. That alone means there is intrinsic value in STEEM.
Fiat can be replaced anytime, but STEEM cannot.
@ew-and-patterns
I agree with your point that everyone has personal motives behind the things they say they or do, or alternatively, they do not understand the concept (or pretend not to!). As for their motives, I cannot comment without further information as to why without my own bias coming into play.
I am interested in your opinion when say the Dollar collapses as you put it what will happen to the value of the stocks? Will the Governments replace them with the new Cryptocurrency so that the organisations do not go under also? Therefore his wealth would, in reality, be replaced by an equal 'value' of Crypto for the new economy, and he would not have lost his accumulated wealth in the real sense. Surely we would have just moved from one Capitalist system to another (Crypto-Capitalist) system.
I would also be interested in how Fiat can be replaced anytime- would we not need to take into account the transition of the systems we have in place, for example, the taxes we pay and the debts we owe in Fiat? How would this work?
Many thanks for your input.
Cheers,
@shenobie
"Therefore his wealth would, in reality, be replaced by an equal 'value' of Crypto for the new economy"
That is likely wrong, because it would cause all (non crypto) markets to crash lets say 50% at least. It will create a lot of FUD and destroy wealth everywhere.
Remember when the EURO was created? They promised everyone would be better off, when in reality prices doubled and our money in the bank was cut in half. This was in fact a haircut by 75%. Everyone lost 75% of what they had before. No joke. And most people did not even realise this truth. They thought they lost only 50% but prices doubled within a month.
Whenever there is a transition in payment methods, people loose a lot of money by design. That's one big and easy way to steal from the many.
What I mean by fiat can be replaced anytime is, that if people loose trust in a currency and it gets literally worthless like we are seeing in venezuela, they will, after a short period of suffering, just try to introduce a new fiat currency that they can issue and control.
But this time will be different. Experts think that people will not accept another fiat currency. It would have to at least be backed by gold. Even a government issued currency might not satisfy the plebs this time. That's why cryptos are actually fighting for the next reserve currency status. It will not be bitcoin, because it is slow and expensive. But one of the fast, zero transaction cost currencies might be fit for this.
I think they would just issue interim arrangements for taxes and offer some fixed exchange rates for fiat debt.
Cheers,
@ew-and-patterns
@ew-and-patterns
Thank you for your interesting views and input.
Cheers,
@shenobie
@ew-and-patterns -Bud, I don't think you correctly understood his question....... your response is a bit schizophrenic and very defensive tbh!
Interesting read although it could use some editing. Despite big names in various industries saying yay or nay to good old BTC, it appears to be trucking along just fine. The violent fluctuations aside, we can see a steady upward trend in value and use. And there is literally no reason I can think of why that wouldn’t continue.
Of course, there is no substitute for the cumulative effect of market forces and reactions over time so it’s probably best to err on the side of caution with BTC and other cryptos. Things are happening so fast in so many places and in so many ways and it’s all really only in its infancy.
It’s interesting to ponder on how things will look in another 3 to 5 years.
Hey @technoguy
You make some excellent points!
I noticed you have repeated the response a few times- I know sometimes our responses don't go through or via glitch get repeated.
You mention editing- I am a newbie to Steemit and would love your input on where I could improve this area for future posts.
Anyway I have just made another post before spotting this feedback- take a look and let me know your thoughts. It would be much appreciated.:
https://steemit.com/bitcoin/@shenobie/hypocrisy-in-the-cryptocurrency-universe-and-why-the-financial-industry-is-loves-it
Cheers,
Shenobie