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Pros and Cons of the Digital Dollar and Crypto Currency


PaulaJedi
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Many rumors are going around that cash is going to disappear soon and we'll all be using digital money.

This poses many questions and frankly, not all banks are accepting it, yet. My bank won't let me buy crypto currency. They say they have it blocked for security reasons. I was going to buy $25 to experiment, but voila, blocked when I tried to transfer money. (I totally forget which software I was trying to use).

So, others are able to cash in on this, but I would have to switch banks if I wanted to.

Cons:

- Government has total control. They can stop all transactions if they wanted to. They can block gun sales. They can decide to only allow you to buy food. (Does mark of the beast ring a bell?)

 

- You will be 100% tracked - every purchase, they know where you are and what you bought. Not that they don't already know with cell phones.

 

- Money can be created or destroyed at any time by the government. (Do you see a theme?)

 

- No more hiding cash in your house for an emergency

 

- Fees. The United States loves bank fees. We'd have plenty of those.

 

Pros

I can't think of any. Writing checks is ridiculous. I wish they would do away with those, but don't you think we have the right to save privately and

purchase privately with cash?

 

Can anyone think of more?

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The had (or maybe still do) a Bitcoin ATM in the mall here (Vancouver, WA). I've messed with mining and have played around with this stuff years ago... I think I ended up making a couple hundred bucks by accident. A system that works the way BTC does wouldn't be too bad in my eyes, but it's too different from what we have now for people to accept it over a short period of time.

 

Here's an interesting article I found talking about the pros and cons:

https://en.cryptonomist.ch/2018/09/29/btc-vs-usd/

 

High altitude:

  1. BTC and USD have no intrinsic value;
  2. the value of BTC varies more than the value of USD;
  3. therefore BTC is a unit of measure worse than USD;
  4. USD is controlled by a Central Bank, BTC is not;
  5. USD inevitably suffers from inflation, BTC does not;
  6. for this reason, BTC should be a better store of value than USD;
  7. for the same reason BTC is a transactional currency worse than USD (also because of point 2);
  8. BTC is not falsifiable, USD is;
  9. BTC transactions are public, USD transactions are not.

This all assumes whatever digital currency is coming is based on something like BTC. I'm probably way off the reservation.

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I feel when it comes to cryptos vs fiat currencies, the relative values & volatility make a bigger difference.

Consider the price of oil in USD, then the price of oil in BTC or XRP or ADA. DXI fluctuates very little, because the value of the USD is supposed to be very stable.

 

Cryptocurrencies like BTC can fluctuate in prices significantly, which means that some days you get less value out of your trades...while other days you see much higher value. I find the relative value of cryptos to neutral commodity goods to be on average better than any given fiat currency

-Oz

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I assumed crypto was the same as the digital dollar Pelosi wants. What's the difference?

 

The digital dollar that's coming out is a form of cryptocurrency that's based off the Etherum blockchain.

All cryptocurrencies use blockchain for the ledger keeping system because of its increased security and decentralized nature.

 

The Fed wants a digital dollar now because of its potential as a monetary tool. Instead of doing open market operations where they buy stocks and bonds, they would inject money into a cryptocurrency--thereby suddenly increasing the value of every holder's wallet.

-->It would be similar to if your $5,000 bitcoin suddenly became worth $10,000 and you decided the time was now to sell

-Oz

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I renamed the thread and now I'm back to crypto..LOL....but my bank won't allow me to buy crypto currency. I wanted to experiment with bitcoin and transfer $25 but my bank blocked it for "security reasons". (Again, I apologize if I am still confusing all of the terms. This is a new topic for me and I know very little).

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I renamed the thread and now I'm back to crypto..LOL....but my bank won't allow me to buy crypto currency. I wanted to experiment with bitcoin and transfer $25 but my bank blocked it for "security reasons". (Again, I apologize if I am still confusing all of the terms. This is a new topic for me and I know very little).

 

If you reside in a country that does not allow you to purchase cryptocurrencies, or your bank is being a stickler--try first just joining one of the crypto exchanges, and depositing $$ into the exchange --> then using the deposited exchange money to buy the coins. You'd just need to find an exchange that your bank would let you make a deposit in.

 

Exchanges you can test:

coinbase - This is the most widely used exchange, and might be most likely for a bank to block

binance - This is the second most widely used exchange, and also likely to be blocked

kraken - This is a newer exchange and might be less blocked

robinhood - I would not think this exchange would be blocked by anyone, as its primary purpose was originally to trade stocks

-Oz

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If you reside in a country that does not allow you to purchase cryptocurrencies, or your bank is being a stickler--try first just joining one of the crypto exchanges, and depositing $$ into the exchange --> then using the deposited exchange money to buy the coins. You'd just need to find an exchange that your bank would let you make a deposit in.

 

It has been a few years, but I thought I tried that. I had to use some app and deposit money into it, but the bank wouldn't allow it. Grrrrrr.

I do believe it was coinbase, now that I see your list. I think the banks are afraid we will no longer invest with them and block these things.

 

Exchanges you can test:

coinbase - This is the most widely used exchange, and might be most likely for a bank to block

binance - This is the second most widely used exchange, and also likely to be blocked

kraken - This is a newer exchange and might be less blocked

robinhood - I would not think this exchange would be blocked by anyone, as its primary purpose was originally to trade stocks

-Oz

 

Thank you. This helps.

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Wells Fargo blocks it!

 

I see. I think if I were in your situation I would probably use my wells fargo card to purchase a prepaid debit card, and then use that prepaid debit card to purchase the coins. Using prepaid cards is one of the ways you can also reduce the traceability of your transactions.

-Oz

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I see. I think if I were in your situation I would probably use my wells fargo card to purchase a prepaid debit card, and then use that prepaid debit card to purchase the coins. Using prepaid cards is one of the ways you can also reduce the traceability of your transactions.

-Oz

 

Great idea.

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