Dave at X22 Report has been speaking about how cryptocurrency will also be used to "being down the Fed.". He says " everyone understands digital currency. "
Let me be the first to dispute with my bold statement that I do not understand digital currency.
I understand barter, where one guy needs some bread, and a baker says I'll give you bread if you'll wash dishes for me for an hour per loaf. Labor exchanged for bread.
I understand how the "coincidence of need and provision," makes barter difficult such that a common currency of exchange is needed.
I understand that historically, we had a currency in the US that was at first backed by the gold standard, then changed to be a fiat backed by a promise or trustworthy government. Paper was issued so that people would know how much each person had and could reasonably make agreements of exchange of goods and services.
I understand that there is a limited supply of gold and paper money, and that this amount is measured and tracked...though not audited.
Here's what I don't understand about digital currency:
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How much of it is there in the universe right now?
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Who is responsible for creating and destroying it?
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Who sets its value?
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How is this value protected against fraudulent use?
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How are the uneducated and uninformed protected from those who would prey on their ignorance with regard to digital currency?
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Will the digital currency accounts all be audited and reconciled?
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Is it sufficient to have digital currency, or as with digital ballots, are paper back ups required?
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Who resolves disputes regarding errors in understanding of digital currency "balances"?
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What happens if one's access to his digital currency is prevented by the digital currency controller, as like what has happened on digital social media?
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What happens if weather causes power outages like what is happening now in some sections of the US? Will digital currency adapt? How?
I've got more questions that quite clearly illustrate that I don't understand digital currency.
Therefore, respectfully, Dave X22Report guy, because I really enjoy listening to your viewpoints, I think your statement that "everyone understands digital currency" is wrong.
Ps. I don't recall Q mentioning cryptocurrency bringing down the Fed.
This! I’m leery of anything that is completely digital - whether it be currency or identification. I don’t trust NOBODY! ???
I'm a pretty educated guy and have spent a lifetime in technology and I would say every one of your questions is perfectly valid! I do know that you can 'manufacture' digital currency; you can 'mine it' on your computer (very abstract concept but it happens). It's actually hard to do and takes a lot of resources (processing power). But - you can literally dig gold out of the ground, so how does that work? To me, this talk of 'gold backed' is really no less arbitrary than with a digital currency.
Edit to add: Doesn't most gold come from mines in South Africa? In which case, why isn't SA the wealthiest country in the world!?
OMG that is most loaded comment I have seen here ... if only this were Voat.
I agree, Bitcoin is new modern gold ... I didn’t see it when it was $1.00 -$1000 and I was supposed to dabble. Dabbling now ...
I was buying LSD with it when it was $2 per coin. I was going to invest $100 back then, I'd have 50 bitcoins hahaha
I searched and can't find any references to digital currency or crypto currency. The thing that nags at me about this type of currency is that there's no escaping a footprint. There's a reason Barry paid the Iranians in pallets of cash instead of digi money.
Just seems to me that this stuff would be so easily controlled and manipulated by CB, my instincts are telling me to stay away.
I don't understand it either. Someone decided a non- tangible illusion created from the ethers via people's imaginations, has numeric value and can be used as an exchange for goods and services? And one erroneous click online can make your stash of invisible digital currency disappear in a poof? At least with paper money you can hold it in your hand. And as OP asked, who arbitrarily decided how much a unit of bitcoin is worth? See what I mean when I say I don't understand. And it seems to me to be a potential scam of monstrous proportions.
I'm no expert, but I'll try a few of these...hopefully it can give you some threads to pull on or someone else can build on/correct this....
It depends on the coin. Bitcoin for instance has a finite amount and more will only be created slowly until it reaches that cap. Others have so much in circulation it really is worthless except out of it's engineered use. Think creating a crypto for a singular purpose...good example is video games creating their own currency to buy vanity items from their store. It has no value outside of that specific store. I'm not sure I see value in this...but it's there.
I don't know the process of getting it recognized, but anyone with the programming understanding can create a new currency. Within that currency, as far as I know, the currency is earned by "mining" which is providing the computational power needed to validate the record on the chain. It gets more complicated here depending on the currency and what systems/programming they use to validate the record.
This is the essence of digital currency. It's claimed to be immutable and CAN be anonymous. Each node on the blockchain network contains a complete ledger of the currency. I imagine this is like a map of every account and "coin". The point of the decentralized nature of blockchain is that it is protected from fraud and error because the computation have to validated in more than one place. Supposedly the only way to influence it is to take over the majority of nodes responsible for the computations (It can be designed in a central way as well, but I think the intent of the tech was decentralization).
The few crypto I've looked into can be carried in multiple ways. You can havbe an online account as you probably do now. You can download them into a hardware wallet (think USB drive), or you can create paper with the addresses of the coin and account it resides. Its worth mentioning that you don't just have a human readable "account number" as you would a bank. It's more of an address.
This is built into the blockchain tech. The system self regulates, but obviously if you start to talk people's life savings and not some meme coin there should be more assurances and understanding here.
If the crypto is centralized, like a Facebook coin, that would be a concern. True decentralization would give power back to people, but it may also be a pipe dream.
In this regard I feel our currency is already digital. If the store can't process payment we use cash. Ultimately if our infrastructure fails we'll be trading in goats either way right?
Thank you so much for your responses!
A follow up for you, if you are willing...
Would you define what is meant by "mining"?
Is blockchain solely controlled by IBM?
Is blockchain a middleman or value-added service?
Mining might have multiple forms, and I only know about it a conceptual level. Basically though, the computational power needed to validate to the ledger is notable. When you "sign up" to add your resources to the project of verifying transactions and whatnot your reward would generally be currency which you are benefiting. Energy into Profit essentially. Think of what they did with the Folding at Home project.
I don't believe so. I think its just a model for structuring a program. I'm really not familiar with its core makeup. I only just understand this bit lol.
I think it potentially cuts out the middle man if designed properly. In it's purest decentralized form it would be wholly owned by all. You wouldn't need a bank to clear transactions because your peer nodes clear and verify by the nature of the system. This is a utopian design tho IMO.
Excellent helpful responses. Thank you. Pointed to something for me to dig further on, Folding at Home.
Me too. I'm Leary of it also.
That’s why I am buying silver. Even if Dave is 100% I can still trade silver for bitcoin.
I just made my first purchase with bitcoin. For anyone interested, here's how it went.
About 3 years ago I installed a hash miner on a computer at work for fun. I wanted to see if it was profitable before I invested MY money into a bunch of video cards. It took a couple of months to accrue apx $80 in value.
I shut it down and forgot all about it.
When EM started hashtagging about Bitcoin, I checked my hash miner account. It was $745! And APMEX takes Bitcoin. I was stoked! I picked out $700 in silver and went to checkout.
First I had to move the bitcoins from my hash wallet to CoinBase. This takes 24 hours and a pic of your drivers license. Next I had to transfer to Bitpay. This took repeating a dozen random words back to them. Now I was ready to pay Apmex!
Apmex gave me an IR code and a copy paste link to an invoice. This part did not go smooth on my PC and it had a countdown timer that was flashing red at me when it finally completed.
The payment said it went to finance at Bitpay dot com, which spooked me a lot! I expected it to say APMEX! The notification said payment would post in 24-48 hours. Two weeks later, I figured it was lost and my great experiment with crypto had ended in failure.
And then I got an APMEX email with my tracking number! Aaaaand I'm mining again passively. Back up to .00002051 or $14.05. Hahahahaaa!
Thx for sharing your story.
You need silver and precious metals to make the computers for crypto to even exists. I consider crypto to be a hard asset because you can't offload it for quick cash. I also consider it to be more of a social currency. There are certain parts of the dark web where you can buy fake IDs and badges, stolen bank accounts and credit card numbers, hacking equipment, (including fake plastic cards and a number loader for you CC numbers) and full auto weapons. You could load up a whole private militia with enough bitcoin and a secure drop location. Crypto's good for the social situation we're in now. Society hasn't fully broken down but everyone's making moves to get even with someone they socially and politically hate. There is still power in most of the country to use Bitcoin. Total societal collapse makes Bitcoin obsolete. It's good to have some crypto but I wouldn't put all your money into it.
Depending on where your crypto is, you can easily convert to USD and back. Total grid down scenario is so 2005, do we really still think that is gonna happen ??? They lose too much money ...
How are you going to transfer it without a network? I know when you have crypto it stays in your wallet but you, to my knowledge can't transfer it without a network. I'm just saying that Crypto is probably the last thing on Texans minds right now. Except for Elon Musk I guess.
Hopefully there is a "cryptocurrency for dummies" being written for us as we speak.
The best part about it is , you can decide right now, I am willing to invest $10, $20, $100 right now, and buy some coin.
1). Set up coinbase (fastest normie land to get funded and trading) 2). Setup binance.us (in order to get some cool stuff you can’t get on coinbase) 3). Get metamask to store your crypto out of coinbase or binance.us
it takes time to get setup ... start yesterday
I use Exodus to store mine off of an exchange, or invest in a physical Ledger 'wallet' to store your crypto. Think of it as a USB flash drive.
Basically having a Ledger or wallet gets rid of the middle man (banks). You're in control of your money with a lengthy pass phrase. Crypto is a whole new world to learn, and I'm still learning myself. Always DYOR. Never invest more than you can afford to lose, as it's a much more volatile market than stocks. Read the white paper on each coin to understand their goal, and if you like what they offer then buy buy buy.
^ Exactly what he says ^
and because it is a lot to learn, get in the space now, takes time ... and the faster you want it, it costs more in fees and stuff
Also, I use Exodus to stake my ADA, but me being normie, Exodus is crypto for normies, and they advertise as such ... but you pay for that l. I can get 6% staking ADA elsewhere, but I only get 4.3% from them .. and they had a huge data breach. I think long term safest is to get off exodus, but I have a little on there myself ...
Exodus had a data breach? Sauce, please.
Edit. I found this. Is it what you are referring to?
https://ethhack.com/2019/04/exodus-surveillance-malware-found-targeting-apple-ios-users/
Wowee. Really great comment here. Jammed full to the brim with information, some of which I actually understand!
I disagree with your response to #5, respectfully, as presently there are S'posed to be laws in US that protect the poor old uninformed from the wily ones in-the-know with regard to money stuff. Not sure how those laws apply to "digital currency" .
If you are willing for follow up questions, I do have a couple... 11. It appears that there is heavy reliance on the digital currency creator for both policing against fraudulent or illegal use and auditing balances. How are the digital currency creators proven to be TRUSTWORTHY?
I've read somewhere that the "Great Reset" was planning to shift to simply using accounts and accounting ledgers (books) with no currency, just numbers. Do you have any comments on this?
Would you explain what you meant by digital currency "controllers"? I used the term while thinking more about the creator and holder of the knowledge of "balances".
What about those who do not have internet access? Are they left out of the marketplace? What if they have a whole bunch of those Federal Reserve notes stashed underneath their mattress instead?
You are a very smart dude. Excellent posts and Thank you!
Digital currency and crypto currency are different concepts that overlap, except that for practical purposes all crypto is digital. Those are all good questions. They all have solid answers. The answers are complex (just like understanding how a central bank-managed fiat currency works, it takes a deep dive for the details), but all available in the public domain if you research them. Most people don't fully understand fiat currencies, or even know that the Fed is not owned by the government. Dave probably meant a simple understanding, like "I pay with a card instead of cash," which by now everybody understands, even if all the electronic connections and server banks are not transparent to everyone.
Thanks for your response, but it seems to me, that in order for the digital currency to be trusted, it has to be TRUSTWORTHY. And to be TRUSTWORTHY, answers to these questions need to be clearly understood by all...particularly to avoid the wool being pulled over our eyes like the "Western Central Bank Federal Reserve" did to us. Seems digital currency has an even steeper hill to climb to trustworthiness because of the deceptions of the Fed that are coming into the sunlight to many who are waking up.
Here's some answers based on the Bitcoin whitepaper. Each different type of crypto currency might have different specifics.
Thank you for these answers!
A follow-up for you, too:
Edit: Oops, forgot to answer you regarding my question #4. By "fraudulent use" I was naively referring to transactions using counterfeit or non-existent or stolen "digital currency"...if there is such a thingy.
The mathematics use a well-known and publicly available elliptical curve. This has been vetted as being secure by academia.
I wonder if the personal “key” will become a chip inserted into the individual for our “protection”...and then it will also contains our medical history, etc. Oh, and don’t worry, it also contains a tracker in case someone kidnaps you! Oh, and we should just insert these automatically into every child at birth... yeah, not a dystopian nightmare a’tall.
You sound extra extra alert. Not a bad thing to be imho.
I am very much so.
I'm an I.T. Professional and I also do not fully understand digital currency - but only because I haven't made the time to focus on it.
I will tell you that I absolutely do not trust it.
As a professional, seeing the things I've seen with tech; I do not think I will ever fully trust a totally digital currency like BitCoin or any other.
I have been starting to buy PM's, however. THAT I can trust.
Might try a simple search of the stock to flow model on bitcoin, the stock to flow model is used on other assets also. Ones you are more familiar with. I'm not gonna post everything I know on an open forum but if someone is serious about looking into crypto then send me a message. The big risks are losing access to your coins (losing the password etc) , transferring to the wrong coin or not checking to make sure the copied hash is right, possible problems with your bank saying money laundering or some shit when you pull it back to the back but I would guess most people lose money because they are ignorant and get fear. Crypto is extremely volatile and hold thinking it will come back at the wrong time, must people don't have the stamina to wait that long and sell out at a loss. BTW crypto and the great reset crypto is different because the Great Rest basically just wants a crypto that they can do the same thing as a central banks does. Inflate the supply.
I came up with one more question if there are any takers...
Edit. Just thought again about the Q quote "Watch CA" and "Multiple Meanings" ...the Certificate Authorities come to mind again.
Just posing a hypothetical here ... why aren't ATMs hacked all the time? There are literally boxes full of money on every street corner just waiting to be hacked but no one's ever done it with much success.
That's not true. They are hacked with some degree of regularity. Used to work in financial field including anti-fraud. There are some criminal gangs that specialize in ATM vulnerabilities, and some have gotten away with it for years. Banks don't talk about it much, but it's a real problem.