It is incredible to think that rich business people around the world have invested their finances into buying a coin, token, digital currency, and non-fungible ownership of a digital picture for in some cases millions of US$ dollars. This in turn has encouraged fewer wealthy individuals to join in their quest to become wealthier.
Noticeably those investors are true believers though clear evidence shows these so-called currencies are speculative devices that have no real intrinsic value behind them. In other words, the mechanism looks great and wannabee investors, in my opinion are being taken on a wild goose chase. There is a video at the end of my blog that exposes the truth about such funds.
Incidentally, you are able to mine for tokens, so imagine finding coins below the ground. It’s a bit like laying under a tree and waiting for money to fall out of the sky. Of top of that Bitcoin is capped out at twenty-one million coins.
Apparently, there are only two more million that can be mined. Once they have gone then it will be interesting to see what other tricks are pulled out of the bag.
As it stands, when demand increases (or more suckers enter the monopoly game) the value of each coin increases. In 2009 when it inaugurated it was worth cents. On the day I wrote this blog one Bitcoin surpassed US$92,000.00.
Now don’t get me wrong. There really is a decentralized digital finance system that supplies tokens from one supplier to another. Therefore, in logical analysis if a token is worth one then it will be forwarded to a receiver as one. The receiver hence has it as a positive ledger receivable. It can be forwarded to another player for payment, or cash out at a bank.
Banks are generally wary of cryptocurrencies due to concerns about security and stability, and the lack of clear regulations. However, some banks are becoming more crypto-friendly, and some are even integrating crypto directly into user accounts. Seen below are North American banks and their participation.
Ally Bank: Considered one of the most crypto-friendly banks in the US
Bank of America: Allows customers to use their credit or debit cards to interact with crypto businesses
Chime Bank: Customers can generally buy crypto using their Chime Bank account or card
PNC Bank: Allows customers to conduct transactions with crypto exchanges and other businesses
Chase: Has its own blockchain platform, Onyx, which allows for the exchange of digital assets and information
Vast Bank: In 2021, became the first federally chartered bank in the US to allow customers to buy, sell, and custody cryptocurrencies directly from a checking account.
Some banks may temporarily pause transactions related to cryptocurrency. Banks can track if you're using your account to transact with crypto businesses.
Cryptocurrencies are decentralized and unregulated, which means that no central bank guarantees them or controls their supply. This can lead to some disadvantages, such as payments not being reversible and crypto prices fluctuating.
In Brazil, the main banks that already offer Bitcoin services include Nubank, Banco do Brasil, BTG Pactual, Itaú and Inter. These banks were the first to offer some service for accessing Bitcoin, with BTG being the most significant, as it has its own platform for trading assets, called Mynt.
I think you’ll find it isn’t easy sailing, as there are restrictions. It may seem positive that traditional banks are opening up to Bitcoin to offer services to their customers, there are complications. This is because these banks are not necessarily specialized in this type of service and many do not allow Bitcoin withdrawals, preventing you from taking custody of your own funds.
Now there is a logical reasoning to have digital currency that is equal for everyone around the globe according to those who have a vested interest in Bitcoin for example. The theory makes sense to protect against currency exchange rates, inflation, and other unforeseen price increases, but it is extremely unlikely to replace different nations currencies in our lifetime. To get every person onboard would take years of painstaking litigation.
Cryptocurrencies are digital tokens. They are a type of digital currency that allows people to make payments directly to each other through an online system. Cryptocurrencies have no legislated or intrinsic value; they are simply worth what people are willing to pay for them in the market. It has taken 15 years to get to this point, and there are many against its implementation in the economy.
In other words, if those invested early on find their investment has made them wealthy then they could pull out, sell their shares and run. This in turn would make the market crash and those invested could lose a lot of their funds, if not everything if the market collapses.
Take care!
Prof. Carl Boniface
Cryptocurrencies and NFTs exposed:
Vocabulary builder:
Intrinsic (adj) = inherent, basic, essential, fundamental, central, core, key, deep-down, deep-seated, deep-rooted
A wild goose chase (idiom) = a foolish and hopeless pursuit of something unattainable. "Physicists searching for the hypothetical particle may be on a wild goose chase."
Unforeseen (adj) = not anticipated or predicted
Painstaking (adj) = careful, meticulous. done with or employing great care and thoroughness. "She used painstaking attention to detail to deliver a winning formula."
Kommentare