Cryptocurrency regulation

[BMK]

"Crypto exchanges that accept fiat" how else could you purchase a Crypto? unless you mine it!

It is possible to acquire cryptocurrency without purchasing it from an exchange.

Your next question will be "Well, okay, but then how are you going to convert it into fiat money without going through an exchange?"

The answer is: It is possible to trade crypto for fiat money by dealing directly with a private party. Or you can use it to purchase goods or services from another party, without using an exchange.

Not everyone that uses crypto is a trader or investor. People use it for... other things. LOL

BMK

 

[BMK]

Many "true believers" in crypto think that eventually it will become commonplace for people to get paid in crypto for work they perform, and then use that crypto to buy things like gas and groceries, and operate completely outside the conventional banking system.

 

[johnarb]

Many "true believers" in crypto think that eventually it will become commonplace for people to get paid in crypto for work they perform, and then use that crypto to buy things like gas and groceries, and operate completely outside the conventional banking system.

Not everyone lives in the US. Cryptos are decentralized and operates without borders, as long as you have internet. We're on weekend mode in the US now and the stock markets are closed, and cryptos folks just don't understand these financial systems closing after 5PM or on weekends and holidays, they perform transactions at midnight, which is 10AM somewhere else, lol.

A crypto youtuber is based in Asia and he's indicated that he has no problems using cryptos for goods and services.

 

[traderjo]

Many "true believers" in crypto think that eventually it will become commonplace for people to get paid in crypto for work they perform, and then use that crypto to buy things like gas and groceries, and operate completely outside the conventional banking system.

so two diff uses of Crypto, 1 for speculation and 2 for as a global currnecy
and when that (No 2) happens ( utopia) do you think authorities will overlook it? I doubt
It is just like the entire world having single measure of currency like Euro in EU and then it still will be regulated , taxed etc

For the entire global supply chain to stop using everything and use 1 crypto will be a dream for some
but reality!
any way even if it happens the issue currently is if it is just a speculator asset class then if it is not regulated anything can happen

 

[traderjo]

It is possible to acquire cryptocurrency without purchasing it from an exchange.

Your next question will be "Well, okay, but then how are you going to convert it into fiat money without going through an exchange?"

The answer is: It is possible to trade crypto for fiat money by dealing directly with a private party. Or you can use it to purchase goods or services from another party, without using an exchange.

Not everyone that uses crypto is a trader or investor. People use it for... other things. LOL

BMK

The answer is: It is possible to trade crypto for fiat money by dealing directly with a private party.
sure and for that to happen there will need some mechanism and a regulated bank or money changer will be involved so can't escape regulation

 

[BMK]

for that to happen there will need some mechanism and a regulated bank or money changer will be involved so can't escape regulation

If you are trying to say that this is how the system should work, then I suppose that is a reasonable opinion. But this is not how the system actually works.

Bitcoin and other decentralized cryptocurrencies can change hands without the involvement of any financial institution or exchange. If it is done carefully and correctly, a Bitcoin transaction can effectively be anonymous and untraceable.

Bitcoin can be reduced to raw code on a flash drive. This is often referred to as a cold wallet.

I can meet you in a back alley or a hotel room, and hand you a flash drive with Bitcoin on it, and you hand me gold bullion, or fiat currency, or a kilo of cocaine.

And the code on the flash drive cannot be traced back to me if it is done the right way.

And there are electronic mechanisms which also allow for anonymous transactions. How do you think people pay for decryption of ransomware? The ransomware hackers do not get caught, and the funds cannot be recovered.

Decentralized crypto can and often does operate completely outside any banking system or exchange.

If you are a trader in the USA, or a legitimate business accepting crypto as payment for goods or services, then you are not using it in this way. But Bitcoin was designed to be anonymous and untraceable. Governments are desperately trying to figure out how to regulate and control it. But they can't. They can pass laws prohibiting anonymous and untraceable transactions, but that's not going to stop people from doing it.

BMK

 

[traderjo]

So DMK a the end of the day
1) If the entire supply chain is not using Crypto at some point somebody has to convert it to a real currency and that then either remains a non declared income/ asset (as you described in your post) and illegal or gets noted in the regulated system. so what is the point?

So for legit purpose it really does not matter if it is Crypto or real money backed by various governments. IMHO
However I can't see in day to day life why on earth I will take cross currency risk for daily goods!
I earn in a real currency and my daily needs of toothpaste or coffee or Netflix subscription WHY WOULD I bother changing my $ to Crypto then hope that every shop owner accepts it also hope that it does not fluctuate too much by the time I use it and then at some point i need my real currency because not every bill can be paid by crypto

2) As pure asset to trade ( just like Stock / futures etc) market integrity would be paramount other wise why the hell add another layer of risk ( that being of crooked/ thinly regulated exchange!)

I get the technology is revolutionary but at the end of the day it is hard earned money and should not escape from the same scrutiny any other financial product does!
but it seems it is like a religious sect ! if you join you can't question the master!

 

[BMK]

@traderjo

I'm not "true believer" in crypto, and I'm not trying to "convert" you or anyone else LOL.

I don't trade crypto. I don't own it. I don't use it.

I could see using it one day if there was a genuine commercial purpose or advantage. For example, if someone had something I want to buy, and they are willing to sell it at a price I consider fair or attractive, but they will only accept crypto as payment, then I would consider using it, especially if I can't get the product anywhere else at that price.

I agree that for some folks, it seems to have become a cult or a religion, kind of like those who are still arguing that we should go back to the gold standard for currency.

And I do think that one day crypto may implode, because it has no intrinsic value. Government issued currency arguably has no intrinsic value either, but it has the backing of a government, and that does make a difference.

Crypto has an artificial value to some degree because it is scarce, i.e., there is demand for it, and there is a limited supply. But the scarcity, or limited supply, is due to the difficulty in mining. There's nothing behind it, and it's not a tangible asset with any inherent value. The system that is creating scarcity, demand, and a limited supply may one day collapse, because there is no central authority, and therefore not much accountability.

Decentralized crypto's greatest strength is also its greatest weakness.

BMK

 

[traderjo]

Agree with you BMK on your last post ...and on the scarcity issue since there are many cryptos like many currencies in the world there is also a risk that people might stop using one and adapt another! unfortunately those of us who raise these kind of points are labelled as anti technology etc

 

[mlawson71]

Turns out Ripple is going to Dubai.
The company revealed in an official statement that it has chosen the DIFC center because it possess an innovative regulatory structure and has a reputation as one of the world’s leading global financial hubs, and probably holds the top spot in that regard in the Middles East, South Asia, and Africa.