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I just KNEW there was a good reason I had a bad feeling about "cryptocurrency".
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Posted by: LateForLunch ®

02/04/2019, 20:24:36

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https://www.foxnews.com/tech/cryptocurrency-exchange-chief-dies-with-passwords-needed-to-unlock-customers-190m-reports-say


Just recently heard a financial adviser on a radio show say that he thought there was room for investment in cryptocurrency. Not speculation mind you, investment. 

'Sounds to me like someone with a radio-show needs to hear that old axiom again, "What is the best way to have a lot of money? Keep a lot of money".

For those interested a thumbnail definition from the Net:

According to Jan Lansky, a cryptocurrency is a system that meets six conditions:[18]

  1. The system does not require a central authority, its state is maintained through distributed consensus.
  2. The system keeps an overview of cryptocurrency units and their ownership.
  3. The system defines whether new cryptocurrency units can be created. If new cryptocurrency units can be created, the system defines the circumstances of their origin and how to determine the ownership of these new units.
  4. Ownership of cryptocurrency units can be proved exclusively cryptographically.
  5. The system allows transactions to be performed in which ownership of the cryptographic units is changed. A transaction statement can only be issued by an entity proving the current ownership of these units.
  6. If two different instructions for changing the ownership of the same cryptographic units are simultaneously entered, the system performs at most one of them.
I note the one crucially inherent part of this description missing from the list is that cryptocurrency has absolutely no real value. It does not exist except as electronically-stored digital information - electricity. One good EMP (natural or thermonuclear) and every cent vanishes as if it had never existed. Not even as substantial as paper monetary notes.   

It bears not the slightest resemblance to real wealth of any species. So to be a modern asset, one may be absolutely and utterly worthless and still be considered "a solid investment".

The financial guy was serious - he pointed out that there are financial entities which have bought stakes in cryptocurrency trading firms and the currency itself, since its value fluctuates like other financial instruments. 






Modified by LateForLunch at Mon, Feb 04, 2019, 20:54:24


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