I've always wondered who is using crypto for money? How does that work if you have to convert from USD to crypto to spend it and the merchant is required to covert back on the other end?
Some companies (mostly online) accept crypto payments, directly. In other words you can pay with Bitcoin, Ether, or whatever cryptos they accept.
For most other uses, however, you must convert the crypto into USD (or whatever fiat currency you choose). This involves simply selling the crypto on an exchange. The exchange must be linked to a bank account. Once the crypto has been sold, you must transfer the USD into your bank account and either use it as USD or convert it into another fiat currency at the going exchange rate. You would, then, use the fiat to purchase whatever it is you want to buy as you would any other funds in your account. There is no need for the merchant to convert your money back into crypto. They have been paid in USD or some other fiat currency.
Thanks for the reply, I'm not a novice. I've been trading Crypto since 2018, mostly small trades. I have purchased other investment with Bitcoin. I was mostly referring to the thousands of coins for sale on the exchanges. Who uses all or any of these?
I've been into cryptos a little longer than you, Dennis. Re all of the thousands of tokens for sale on the exchanges . . . Bill is right about the fact that most of them are rip-offs and will end up being worthless. Most of them have no use, whatsoever, as far as I can tell. I think they've been created by people looking to make a fast buck by suckering the gullible into investing in them, then vanishing with their money by the time they realize that the coins are worthless.
"Let the buyer beware" is good advice, especially when it comes to crypto currencies.
Yes, there's a lot of ripoffs surrounding crypto. Early on my son suggested I offer up his college money to invest in Bitcoin. The idea popped into his head because one of his buddies scored his college money for Bitcoin at $1200. Wisely I decided collateralizing the money for a piece of thin air was not wise. His buddy had a grand time of watching Bitcoin shoot to $10,000 making him a millionaire, but held too long, and it was back down to $2300. I chalked that up to investing in a pump and dump. He sold at $2300, attended college and bought a new car. He should have kept Bitcoin because the college education was a waste, the car is in the junkyard, and he's now studying to be an electrician out of his own pocket.
My son came to me a week ago, recommending I buy into Doge and Shibu coins, I decided to take him up on it. Shibu at .0000287 and Doge at .12 cents garners one a lot of coins for a few hundred. If the wacky world of Crypto does another Bitcoin with either of these two I'll hand my son a commission, if not he'll experience a pump and dump first hand I'll be out a few hundred, a cheap education. I tried to teach my son the value of a trade, as one with 40 years in hvacr, I've never been unemployed, laid off, or in want of money. I've never had need of living within a budget, nor worried about debt. What I learned by attending college early on; People who attend college for the most part have no mechanical knowledge. They learn that throwing money at a mechanical problem will not fix the problem but most times cause a bigger problem. Solving mechanical problems for a fair price is as simple as forming a loyal relationship with the tradesman of your choice, but you must choose wisely. I've never had the need to advertise in 35 years, our vans are not lettered.
The secret; the tradesman who is stealthy, is the very best value. The difficult part is finding that fellow.
Unfortunately Bitcoin and the stimi money has warped the world of the workaday fellow, my son is not interested in the trades. He has at his finger tips one of the best hvacr contractors in the City of Philadelphia to learn from. Last year running my business in the most counterproductive manner I was able to bring home near $200k not bad for a C- student in HS and 2.5 GPA in college. I was bored with learning from those who knew nothing of value. My father gets the credit, borrowing money out of my custodial account giving it to the trades school. Message from my father; "You attend or the money is a going towards a scholarship for another" To hell with that idea I'm going.
while I do not know technical details here is my observation: say you want to save 100oz of silver 3110 grams and get 3110 AGX coins. you then decide you need some of that "savings" and you move 500 AGX to your wallet that is converted into USD (or whatever currency) at that point you can then go spend the USD
Another fun read! what about a real 100% precious metals back digital currency in audited vaults. What if a system designed create real money to save, spend, transfer and convert back/forth between physical and digital can be built to complement hold in our hand physical gold and silver. Seems that linking PMs and the blockchain provides some real potential even though carries some risk. Silver gets heavy to carry, PMs difficult to transport across borders, fiat depreciates and incurs other risk in a bank account or under mattress. The LODE digital silver and gold project seems to be headed down a legitimate path - time will tell but I like the diversification and flexibility that a PM crypto can provide. A challenge will be for the governance process to evolve in a way that diluting the backing cannot occur. Thoughts?
I've always thought if the SHTF these folks holding my gold might skip town, with the auditors hand in hand. After the Greek government clipped one of my customers (egg joint onwer) of 3 million USD I'm pretty sure my gold is safer as buried treasure.
And so another missive regarding our national debt and inflation and the plight of the of the pension funds. What if inflation isn't more money chasing fewer goods but currency reevaluation. Can one imagine a balanced federal budget because if one can then a reevaluation may be the only way out of this mess. Basically paying off 30 trillion with much cheaper dollars. The market will continue to go up as the dollar depreciates and the pension funds are safe. If we can say the market is 50% over valued already the the fed is halfway there, do it again and wages will double again and a tomato will cost $2, and gasoline will be 6 or 7 or 10 per gallon. In that reality the US government tax revenues may go from 4 trillion to 8 or 10 trillion and paying off 30 trillion becomes a 15 or 20 year mortgage. How that affects currencies that are pegged I can't say but a barrel of oil could be heading to $200. The illicit economy will likely take a bath, does anyone care if the criminals lose a fortune?
Who do we own 30 trillion fake dollars too? The best way out of the debt would be to kill the creditor. One act of congress could do just that, but then congress would have to go back to earning a fair dollar. Most of these folks are former ambulance chasers, you can bet that's never going to happen.
What happens when a crypto 'passes away'. Are the holders of that crypto left with an empty bag, a 100% loss of whatever amount they paid to buy it? Or is the position transferred into some other crypto, or redeemed in Government currency?
When a crypto "passes away" it's a 100% loss to the investor. It's just like a stock that becomes worthless. You can hold onto it in the hopes that it will be worth something in the future, or just count it as a loss and move on.
"What happens when a crypto 'passes away’?” It goes to money heaven just like the fiat currencies discussed in Bill’s post. To get the value that you invested in it, you have to go to heaven, too. Until that time, you live in the hell you created for yourself by investing in a product that is now worthless.
Without crypto being deemed illegal in all of the world, a massive EMP in the atmosphere or an asteroid strike it's not going away.
Art is Crypto to the elites. They buy some crap Andy Warhol for 5 million, and sell it for 5 million in Croatian, fees are paid the auctioneer but 5 million just left the USA with no one the wiser. Art has also been used as a front for funneling payment for nefarious purposes. One pays 2 million for paint smeared on canvas and collects their package, political favor or slave on the other side. Proof of fact is Hunter Biden's art. Watch who's buying his crap and follow the money.
Your article was very interesting, but I found the responses very factual and funny. It's a wake up call to everyone!
Today becomes yesterday much too soon
I've always wondered who is using crypto for money? How does that work if you have to convert from USD to crypto to spend it and the merchant is required to covert back on the other end?
Dennis
Some companies (mostly online) accept crypto payments, directly. In other words you can pay with Bitcoin, Ether, or whatever cryptos they accept.
For most other uses, however, you must convert the crypto into USD (or whatever fiat currency you choose). This involves simply selling the crypto on an exchange. The exchange must be linked to a bank account. Once the crypto has been sold, you must transfer the USD into your bank account and either use it as USD or convert it into another fiat currency at the going exchange rate. You would, then, use the fiat to purchase whatever it is you want to buy as you would any other funds in your account. There is no need for the merchant to convert your money back into crypto. They have been paid in USD or some other fiat currency.
Thanks for the reply, I'm not a novice. I've been trading Crypto since 2018, mostly small trades. I have purchased other investment with Bitcoin. I was mostly referring to the thousands of coins for sale on the exchanges. Who uses all or any of these?
I've been into cryptos a little longer than you, Dennis. Re all of the thousands of tokens for sale on the exchanges . . . Bill is right about the fact that most of them are rip-offs and will end up being worthless. Most of them have no use, whatsoever, as far as I can tell. I think they've been created by people looking to make a fast buck by suckering the gullible into investing in them, then vanishing with their money by the time they realize that the coins are worthless.
"Let the buyer beware" is good advice, especially when it comes to crypto currencies.
Yes, there's a lot of ripoffs surrounding crypto. Early on my son suggested I offer up his college money to invest in Bitcoin. The idea popped into his head because one of his buddies scored his college money for Bitcoin at $1200. Wisely I decided collateralizing the money for a piece of thin air was not wise. His buddy had a grand time of watching Bitcoin shoot to $10,000 making him a millionaire, but held too long, and it was back down to $2300. I chalked that up to investing in a pump and dump. He sold at $2300, attended college and bought a new car. He should have kept Bitcoin because the college education was a waste, the car is in the junkyard, and he's now studying to be an electrician out of his own pocket.
My son came to me a week ago, recommending I buy into Doge and Shibu coins, I decided to take him up on it. Shibu at .0000287 and Doge at .12 cents garners one a lot of coins for a few hundred. If the wacky world of Crypto does another Bitcoin with either of these two I'll hand my son a commission, if not he'll experience a pump and dump first hand I'll be out a few hundred, a cheap education. I tried to teach my son the value of a trade, as one with 40 years in hvacr, I've never been unemployed, laid off, or in want of money. I've never had need of living within a budget, nor worried about debt. What I learned by attending college early on; People who attend college for the most part have no mechanical knowledge. They learn that throwing money at a mechanical problem will not fix the problem but most times cause a bigger problem. Solving mechanical problems for a fair price is as simple as forming a loyal relationship with the tradesman of your choice, but you must choose wisely. I've never had the need to advertise in 35 years, our vans are not lettered.
The secret; the tradesman who is stealthy, is the very best value. The difficult part is finding that fellow.
Unfortunately Bitcoin and the stimi money has warped the world of the workaday fellow, my son is not interested in the trades. He has at his finger tips one of the best hvacr contractors in the City of Philadelphia to learn from. Last year running my business in the most counterproductive manner I was able to bring home near $200k not bad for a C- student in HS and 2.5 GPA in college. I was bored with learning from those who knew nothing of value. My father gets the credit, borrowing money out of my custodial account giving it to the trades school. Message from my father; "You attend or the money is a going towards a scholarship for another" To hell with that idea I'm going.
while I do not know technical details here is my observation: say you want to save 100oz of silver 3110 grams and get 3110 AGX coins. you then decide you need some of that "savings" and you move 500 AGX to your wallet that is converted into USD (or whatever currency) at that point you can then go spend the USD
Another fun read! what about a real 100% precious metals back digital currency in audited vaults. What if a system designed create real money to save, spend, transfer and convert back/forth between physical and digital can be built to complement hold in our hand physical gold and silver. Seems that linking PMs and the blockchain provides some real potential even though carries some risk. Silver gets heavy to carry, PMs difficult to transport across borders, fiat depreciates and incurs other risk in a bank account or under mattress. The LODE digital silver and gold project seems to be headed down a legitimate path - time will tell but I like the diversification and flexibility that a PM crypto can provide. A challenge will be for the governance process to evolve in a way that diluting the backing cannot occur. Thoughts?
It has already been done ----> https://paxos.com/paxgold/
I've always thought if the SHTF these folks holding my gold might skip town, with the auditors hand in hand. After the Greek government clipped one of my customers (egg joint onwer) of 3 million USD I'm pretty sure my gold is safer as buried treasure.
And so another missive regarding our national debt and inflation and the plight of the of the pension funds. What if inflation isn't more money chasing fewer goods but currency reevaluation. Can one imagine a balanced federal budget because if one can then a reevaluation may be the only way out of this mess. Basically paying off 30 trillion with much cheaper dollars. The market will continue to go up as the dollar depreciates and the pension funds are safe. If we can say the market is 50% over valued already the the fed is halfway there, do it again and wages will double again and a tomato will cost $2, and gasoline will be 6 or 7 or 10 per gallon. In that reality the US government tax revenues may go from 4 trillion to 8 or 10 trillion and paying off 30 trillion becomes a 15 or 20 year mortgage. How that affects currencies that are pegged I can't say but a barrel of oil could be heading to $200. The illicit economy will likely take a bath, does anyone care if the criminals lose a fortune?
Who do we own 30 trillion fake dollars too? The best way out of the debt would be to kill the creditor. One act of congress could do just that, but then congress would have to go back to earning a fair dollar. Most of these folks are former ambulance chasers, you can bet that's never going to happen.
What happens when a crypto 'passes away'. Are the holders of that crypto left with an empty bag, a 100% loss of whatever amount they paid to buy it? Or is the position transferred into some other crypto, or redeemed in Government currency?
swiftsteve
When a crypto "passes away" it's a 100% loss to the investor. It's just like a stock that becomes worthless. You can hold onto it in the hopes that it will be worth something in the future, or just count it as a loss and move on.
"What happens when a crypto 'passes away’?” It goes to money heaven just like the fiat currencies discussed in Bill’s post. To get the value that you invested in it, you have to go to heaven, too. Until that time, you live in the hell you created for yourself by investing in a product that is now worthless.
unless regulated/endorsed by an official financial regulator, you have no recourse.
Without crypto being deemed illegal in all of the world, a massive EMP in the atmosphere or an asteroid strike it's not going away.
Art is Crypto to the elites. They buy some crap Andy Warhol for 5 million, and sell it for 5 million in Croatian, fees are paid the auctioneer but 5 million just left the USA with no one the wiser. Art has also been used as a front for funneling payment for nefarious purposes. One pays 2 million for paint smeared on canvas and collects their package, political favor or slave on the other side. Proof of fact is Hunter Biden's art. Watch who's buying his crap and follow the money.
I have used the same song but for "freedoms" . JJ