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Old Yesterday, 05:08 AM   #2281
Samson
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Originally Posted by Craig B View Post
I must stress that I agree entirely with this assessment. It's very much like the 1846 railway mania. The mania soon popped, but railways remained (and remain) a valuable resource. Over long periods railway undertakings have values that reflect the usefulness of this technology, and the revenues which it secures in the transport marketplace.

If blockchain turns out to be as useful as you suggest, as well it may, it will retain a value too. But it will nor jump from cents per "token" to tens of thousands of dollars, unless it becomes the pretext for yet another speculative bubble.
It sounds more like the internet than a railway line.
We should maybe consider what an "internetcoin" is valued at.
Hang on....
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Old Yesterday, 05:20 AM   #2282
Craig B
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Originally Posted by Samson View Post
It sounds more like the internet than a railway line.
We should maybe consider what an "internetcoin" is valued at.
Hang on....
For some strange reason, people who erect internet paywalls demand payment in "worthless" counterfeit fiat monetary tokens.
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Old Yesterday, 05:17 PM   #2283
Roger Ramjets
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Originally Posted by Tippit View Post
Worst analogy ever. You cited three examples of real things with real value...

Gucci has to source the leather and other fine materials in order to craft their handbags. Rolex has to source not only precious metals, but retain expert watchmakers to produce some of the world's finest watches. The Mona Lisa is a unique work of art.
I hope you aren't arguing that only things of 'real value' can be counterfeited, because...

Counterfeit money
Quote:
is imitation currency produced without the legal sanction of the state or government...

Today some of the finest counterfeit banknotes are called Superdollars because of their high quality and likeness to the real US dollar.


Originally Posted by Tippit
My use of the word counterfeit refers to the costless creation of endless amounts of money
But the US dollar can be counterfeited, so that means... oops!

Quote:
Why is it ok for the Fed to do it, but not you or me?
Because they have the legal sanction of the state or government, and you don't?

BTW you are welcome to create whatever 'counterfeit' money you like, just don't try to pass it off as real US dollars.

Quote:
Incidentally, the dollar was originally defined as 371.25 grains of fine silver. So yes, the Federal Reserve Note is a counterfeit in every sense of the word.
Incidentally, the US dollar was always 'counterfeit'...

History of the United States dollar
Quote:
The American dollar coin was initially based on the value and look of the Spanish dollar, used widely in Spanish America from the 16th to the 19th centuries. The first dollar coins issued by the United States Mint (founded 1792) were similar in size and composition to the Spanish dollar, minted in Mexico and Peru. The Spanish, U.S. silver dollars, and later, Mexican silver pesos circulated side by side in the United States
And being made of 'precious' metals didn't prevent its value from declining...
Quote:
In the early 19th century, gold rose in relation to silver... Therefore, in the Coinage Act of 1834, the 15:1 ratio of silver to gold was changed to a 16:1 ratio... The result of this revaluation, which was the first devaluation of the U.S. dollar, was that the value in gold of the dollar was reduced by 6%...

The discovery of large silver deposits in the Western United States in the late 19th century created a political controversy. Due to the large influx of silver, the value of silver in the nation's coinage dropped precipitously.
In hindsight, basing the money supply on a metal whose 'value' is dependent on mining activities was not a great idea.

The true value of a currency is nothing more than the value of the goods and services it was exchanged for. Therefore the medium itself should be as cheap to produce and use as possible, while being difficult enough to copy that making counterfeits is not worthwhile. Bitcoin fails as a currency because it is expensive to produce, anybody can make a copy and call it 'Bitcoin', and its supply is constrained by mining activities which are not related to economic wealth.
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Old Today, 09:14 AM   #2284
psionl0
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Originally Posted by Roger Ramjets View Post
Bitcoin fails as a currency because it is expensive to produce, anybody can make a copy and call it 'Bitcoin', and its supply is constrained by mining activities which are not related to economic wealth.
Wow, talk about delusional. A fork of bitcoin is not a copy of bitcoin let alone any other crypto.

You might not be able to tell the difference but others obviously can since the prices are all different.
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