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What if it was currency

  • 28-09-2020 8:35pm
    #1
    Registered Users Posts: 1,201 ✭✭✭ Man with broke phone


    What I dont understand about crypto is the fact new ones can keep setting up.

    Say if Ireland just set up a new currency or reissued the punt. Then England did a new currency but also kept the pound. Then France brought back the Franc but kept the euro. Say america brought out an american pound but kept the dollar.

    Surely the value of the euro and dollar and every currency would drop because there is less demand for these currencies because there is just more money types floating around.

    So at the moment as people and new people keep buying the cryptos it will be decent in value but there is nothing stopping 100 new cryptos opening tomorrow as far as I can tell.

    Surely at some stage suddenly the value of all the cryptos will start tanking. Now I know there are people here who want to sell the idea that they are buying it up and it can never fail to keep the bubble expanding but I know a fella who never stopped talking about it the last 4 or so years and he told me last week he sold up. He had 380 euro worth or so.

    This suave investor spoke about it around the clock and how he was slowly buying it up. I couldnt believe it.

    So say a big bank or apple or Pepsi or all 3 announce they are releasing their own crypto tomorrow, everything you have will become worthless overnight.

    Am I wrong?


Comments

  • Registered Users Posts: 1,223 ✭✭✭ AmberGold


    380K ?


  • Registered Users Posts: 1,201 ✭✭✭ Man with broke phone


    AmberGold wrote: »
    380K ?

    No 380 scaldy euro.


  • Registered Users Posts: 1,223 ✭✭✭ AmberGold


    No 380 scaldy euro.

    :) good point on all the sh1t coins, who knows where it’ll end. I do see ETH & Bitcoin being around for a long time but what do I know sure I’m bag holding Orchid for months now!


  • Registered Users Posts: 2,649 ✭✭✭ Whelo79


    In this instance I liken it too the stock market. If every company listed on the NYSE suddenly start selling off all their shares the price of every company would crash. Same with crypto, if everyone start selling the price would plummet.


  • Registered Users Posts: 6,026 ✭✭✭ grindle


    So say a big bank or apple or Pepsi or all 3 announce they are releasing their own crypto tomorrow, everything you have will become worthless overnight.

    Am I wrong?

    Yeah. Why would people want a coin from any of those companies?


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  • Registered Users Posts: 4,655 ✭✭✭ makeorbrake


    Say if Ireland just set up a new currency or reissued the punt. Then England did a new currency but also kept the pound. Then France brought back the Franc but kept the euro. Say america brought out an american pound but kept the dollar.

    Surely the value of the euro and dollar and every currency would drop because there is less demand for these currencies because there is just more money types floating around.
    Sovereign currencies losing value? That's the whole point. That's happening the whole time. Look at the buying power of the US dollar from 1912 until now.
    What I dont understand about crypto is the fact new ones can keep setting up.
    Anyone can but all cryptos are not created equal - even if they're clones.
    So say a big bank or apple or Pepsi or all 3 announce they are releasing their own crypto tomorrow, everything you have will become worthless overnight.

    Am I wrong?
    I believe you are wrong. There's going to be competition in money - between state digital currency, corporate digital money and decentralised digital money. They're not the same thing by any stretch of the imagination.


  • Registered Users Posts: 26,230 ✭✭✭✭ Wanderer78


    Am I wrong?


    Cryptos currently are not truly a part of the money supply, but of course at some point in the future, they could be, it does look like some central banks are seriously looking at these possibilities. Major central banks have been effectively creating an astonishing amounts of money, over the last few years, but we have not yet experienced inflation, in fact, deflation is becoming more of a concern, which introduces it's own set of problems, particularly in relation to debt. The inflationary issues are truly only a problem, when there's supply side issues, I.e. Zimbabwe, but there's currently, very little issues there, our shelves are well stocked


  • Registered Users Posts: 10,905 ✭✭✭✭ Bob24


    I believe you are wrong. There's going to be competition in money - between state digital currency, corporate digital money and decentralised digital money. They're not the same thing by any stretch of the imagination.

    Yes, basically those are the 3 kinds.

    And also if we are taking about these we need to define what the role of currencies are: legal tender for payments within a country, international trade currency, reserve currency.

    IMO it is unlikely for any major country to make anything but central bank digital currency a legal tender.

    But the interesting spaces to watch are the ones for international trade and resserve assets, whereby the US dollar is currently king. IMO the game there is really open to replace it with a CBDC, something like Libra (Silicon Valley will learn from Facebook’s mistake in terms of getting governments on board), or Bitcoin (or another decentralised cryptocurrency).


  • Registered Users Posts: 4,655 ✭✭✭ makeorbrake


    Bob24 wrote: »
    But the interesting spaces to watch are the ones for international trade and resserve assets, whereby the US dollar is currently king. IMO the game there is really open to replace it with a CBDC, something like Libra (Silicon Valley will learn from Facebook’s mistake in terms of getting governments on board), or Bitcoin (or another decentralised cryptocurrency).

    There are trade offs with all three and use cases for all three (albeit of course I'd sooner have us all do everything the decentralised way - but that's not my call). That's why in addressing the OPs point, I don't see the others as a threat - if anything they will help in getting people used to digital money. To me, the biggest issue is user experience/ease of use. If that can be improved upon for decentralised currency, then nothing else will matter (as they won't be able to stop it at that point).


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