3/13/2023 – PM

See what I mean? Why are banks giving money for crypto use?


Just sayin’ – can you make somethin’ out of nothin’? You buy crypto with dollars – so what do you have? It is digital – so?

Just messin’ around with what is on the internet and tryin’ to get comfortable; but, how do I get comfortable with the internet when so much of it has been proven to be fake? What proof do you have that you have somethin’ when that somethin’ can be wiped out in a New York minute?

Cryptocurrency is real money in the same way that fiat currency is real money. The only difference between Bitcoin and the dollar is that Bitcoin isn’t quite fully accepted by the broader population just yet.

Web Feb 16, 2023 · A cryptocurrency is a digital, encrypted, and decentralized medium of exchange. Unlike the U.S. Dollar or the Euro, there is no central authority that manages it.

(And – to me – is the problem. It has gotten a “bad rap” in a number of ways.)

What are Cryptocurrencies backed by?
As mentioned, cryptocurrencies can be backed by a variety of things. To elaborate more on Bitcoin, that asset is backed by the mathematics that power the underlying blockchain technology. Each transaction must be verified so that no one can double-spend their assets. That way, the network remains stable, and bad actors cannot cheat it.

s crypto a secure currency?
“The best-known crypto, Bitcoin, is a secure, decentralized currency that has become a store of value like gold ,” says David Zeiler, a cryptocurrency expert at financial news site Money Morning. “Some people even refer to it as ‘digital gold.’” Using crypto to make purchases securely depends on what you’re trying to buy.

What Is Cryptocurrency? – Forbes Advisor


What is fiat currency and does it have value?

Fiat money is money that does not have intrinsic value and does not represent an asset in a vault somewhere. Its value comes from being declared “legal tender”-an acceptable form of payment-by the government of the issuing country.

The U.S. DOLLAR is a fiat currency. The term “fiat” is a government currency not backed by a physical commodity like golf or silver. Instead, the money has value because the issuing government says it has value.

Whereas, cryptocurrencies are digital and are not issued by a government, bank or other central authority.

It’s likely not what you think — because most people are asking the wrong question.
People often say: “bitcoin can’t be money, it isn’t backed by anything.” This is an old way of thinking that originated with paper money. Prior to paper money, people used precious metal coins (such as gold) because they maintained strong monetary properties: scarcity, durability, divisibility, portability, fungibility, and acceptability (the six monetary properties).

Paper became money because it was superior to gold in terms of divisibility and portability BUT it lacked scarcity. People reasoned that we could benefit from the greater divisibility/portability of paper money as long as it was redeemable in a form of money that was scarce. This is when money needed to be “backed” by something.

Since we changed money to paper money that wasn’t scarce, it needed to be backed by something that was.

Since the repeal of the gold standard, politicians have retarded the meaning of the word because our money is no longer backed by something scarce. Governments say money is backed by their “full faith and credit” as an attempt to allude populations into the belief that their horrendous credit is economically equivalent to one of the scarcest commodities in the world.

So, what is bitcoin backed by?

Examples of fiat currencies is the U.S. Dollar, the euro, the yen and most international traded currencies.


As far as I am concerned – until a better handle is – gold/silver is a better deal and certainly more stable.


About kommonsentsjane

Enjoys sports and all kinds of music, especially dance music. Playing the keyboard and piano are favorites. Family and friends are very important.
This entry was posted in Uncategorized and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s