Crypto

[Tripps]

Interesting article on crypto. I wonder whether it will turn out like the personal computer, or like the Segway.
https://www.coindesk.com/the-real-problem-with-crypto

[1K9]

I am ignorant and do not understand Crypto, Puts and Calls or Margin. Bet a little on Gray Scale GBTC and it has grown some. At this stage the return OF capital is more important than the return ON capital.

[barbagris]

The real problem with crypto is it just might work.
And then what?

Nice conclusion.

[Speedy]

Agreed about the conclusion. Just another way some will try to "offshore" their assets to evade taxation.

One problem with crypto is that at some point it must be converted into a usable currency. While you may be able to barter with it for the exchange of some assets, to buy products or pay wages you must convert to the local currency and that is when governments exert control over the transaction via taxation. There is no free lunch in the world!

It is better thought of as an investment exactly like buying a Picasso: there are only so many, they can't be copied, and they are worth only so much as the next buyer is willing to pay. They are not pegged to anything material or indexed to the creation of wealth via labor or transformation. Therefore they are speculative as evidenced by their current values. Thus, they end up being as susceptible to manipulation as any fiat currency. Someone like Bezos or the Koch brothers could buy enough of the asset to control the valuation. Sound familiar?