Cryptocurrency

[OwlHoot]

There are several kinds of cryptocurrency, but isn't the main one, bitcoin, becoming ever harder to "mine" (by design) ?

I can see why the tokens need a rarity value, and effort to create, but that doesn't sound sustainable in the long term.

[scooterscot]

Someone robbed you ?

Well they're worth next to nothing. So lost is as good as term as anything.

Bought close to a million XRP a month ago. They be doing very nicely. In at 0.006, out at 0.047 Still annoyed that I din't get out at 0.074 but it was a 15 minute window of opportunity.

[scooterscot]

There are several kinds of cryptocurrency, but isn't the main one, bitcoin, becoming ever harder to "mine" (by design) ?

Only up to 20 million. But you can own fractions of a bitcoin. Although they are valued at $1180 at the minute, some are predicting they'll be worth over $100k in the years to come.

But I'm not sure bitcoin has a future, it's too slow. Transactions take more time than others altcoins are offering. In fact there is one other that is scalable and is adjusted with inflation, which I've taken a special interest in.

[diseasex]

Blockchain is not a bubble.

Take the ripple blockchain for example. Banks have traditional used CHAPS, Swift, and intermediary banks in different parts of the globe to move money around the world. That's an expensive system. An old system. If you can move money around the world at a fraction of the cost, why would you not do that?

As in all business, it's change or die. I love how webpage developers complain endlessly and wordpress. My family need the money I make from webpage development and wordpress is damaging my income. Them people...

Blockchain is technology to do transactions. It's fine.
But perceived value of the bitcoin is complete bubble.

[scooterscot]

Yes. The change is it's only matter of time before the authorities clamp down on all this.

Cryptocurrency is purely money laundering. Like so many things in life the only reason you want to hide something is because you are doing wrong.

You'll tell me the authorities turn a blind eye to illegal drugs but upsetting the Americans is much more serious.

I was recently working on HSBC's Global Standards Programme - literally £billions lost on costs and fines. It's was all because of money laundering. And that's just one player.

Cryptocurrency is clever, but so was Breaking Bad...

Bitcoin is not private. Anyone can see who has done what bought what etc. Fiat money offers more privacy. If money laundering is your thing stay away from bitcoin!

Quoting HSBC, they're part of the problem.

"The chairman of HSBC has admitted his shame at the “horrible reputational damage” the bank has suffered following the revelations of the systematic aiding of tax avoidance at its Swiss subsidiary, but has refused to take personal responsibility for the failings."

[Cirrus]

but that doesn't sound sustainable in the long term.

Exactly: in fact the number of bitcoins has hard limit.

Currently the expensive process of managing bitcoin and the blockchain is subsidised by letting successful miners print money. That has to stop at some point. Then where does the money come from to run the whole system?

Any other similar system not using centralised control faces the same dilemma: how do you pay for it unless someone controls it and if someone controls it they need to charge fees and they will be targets for governments to control money laundering and sanctioned transfers.

As with the general Fintech Bubble (Dot Com 2.0) lots of people are talking about it but what little I've heard about (eg Swift replacements) is thought not really to be blockchain but just another money transfer system.

[scooterscot]

Blockchain is technology to do transactions. It's fine.
But perceived value of the bitcoin is complete bubble.

For as long as any currency has utility it will exist. The bubble has been inflated by demand. You can now used bitcoin on amazon.

The demand for GBP will likely fall in 2 years. Same thing really.

[scooterscot]

Exactly: in fact the number of bitcoins has hard limit.

Currently the expensive process of managing bitcoin and the blockchain is subsidised by letting successful miners print money. That has to stop at some point. Then where does the money come from to run the whole system? .

Some altcoins introduce transaction fees. Very small ones, to cover this issues specifically.

[Cirrus]

Quoting HSBC, they're part of the problem.

The Swiss thing was nothing whatever to do with what we are talking about. That was just helping people evade tax, and comes more into the area of FATCA (which I also worked on at HSBC).

The big ticket items were the lorry trains of Mexican drug cash, the tsunami of Russian travellers cheques funnelled through the Far East , industrial subversion of AML systems to let money enter the dollar markets etc etc

The fact is the world is largely lawless, and the City rides on this wagon train more than most. However in recent times the Americans have decided they are going to appoint themselves as global policeman. Unlike your local bobby, when the Americans say something, people take a lot of notice.

[scooterscot]

The Swiss thing was nothing whatever to do with what we are talking about. That was just helping people evade tax, and comes more into the area of FATCA (which I also worked on at HSBC).

The big ticket items were the lorry trains of Mexican drug cash, the tsunami of Russian travellers cheques funnelled through the Far East , industrial subversion of AML systems to let money enter the dollar markets etc etc

The fact is the world is largely lawless, and the City rides on this wagon train more than most. However in recent times the Americans have decided they are going to appoint themselves as global policeman. Unlike your local bobby, when the Americans say something, people take a lot of notice.

It seems to me the Swiss 'thing' is everything to do with it. If concern is about criminality, they were implicate in helping other circumnavigate the law. A law in which we all depend on. What's the point of government introducing laws when the percentage of society seek to avoid it with the help of insinuations you are working for?