Ron Paul on "Cryptocurrency Craze"

Interesting, as Ron Paul always is, but I'm still confused about "cryptocurrency".

http://www.ronpaullibertyreport.com/archives/market-update-the-cryptocurrency-craze

Naturally I have heard about Bitcoin. Don't understand it, but heard about it. But I'm so clueless I didn't even know there were hundreds of different "cryptocurrencies".

This gives me a headache.

It is just a plain scam.

Quote: bobbartop

Interesting, as Ron Paul always is, but I'm still confused about "cryptocurrency".

http://www.ronpaullibertyreport.com/archives/market-update-the-cryptocurrency-craze

Naturally I have heard about Bitcoin. Don't understand it, but heard about it. But I'm so clueless I didn't even know there were hundreds of different "cryptocurrencies".

This gives me a headache.

I think I understand the technical aspect of Bitcoin enough to where I could explain it in really basic terms. I’ve been meaning to write up a post or blog on it, I’ll try to do it soon if there’s enough interest.

There’s so many different cryptocurrancies because the bitcoin protocol is open source, so anyone can make their own spinoff with fairly minimal effort. Most aren’t worth anything, others like Etherum and Litecoin have gained some value.

Yes, an explanation would be helpful.

Quote: gamerfreak

I think I understand the technical aspect of Bitcoin enough to where I could explain it in really basic terms. I’ve been meaning to write up a post or blog on it, I’ll try to do it soon if there’s enough interest.

Please do. I'll read it. Can't promise I'll understand it.

Crypto currency with regards to people with libertarian beliefs, just a sales pitch imo. It's not the money people are worried about, it's the governments. The cryptos are just able to sneak past borders.

Quote: speedycrap

It is just a plain scam.

Plain scams are rarely profitable.

Quote: onenickelmiracle

Crypto currency with regards to people with libertarian beliefs, just a sales pitch imo. It's not the money people are worried about, it's the governments. The cryptos are just able to sneak past borders.

I still don't get it, One Nickel. I know, I'm simple, but where does the value come from?

Quote: gamerfreak

I’ve been meaning to write up a post or blog on it, I’ll try to do it soon if there’s enough interest.

What are you waiting for? Christmas?

Quote: bobbartop

I still don't get it, One Nickel. I know, I'm simple, but where does the value come from?

I don't quite understand it either, but I'd say the value comes from the same thing that gives our regular currency value -- it's worth whatever people say it's worth. If I have a coin X and I can trade it for Y, then that's how much it's worth. Sure it might be monopoly money, but all money is monopoly money, except currencies that can be used for other things (ie: you can silver, gold, platinum, etc. for building stuffs or something, whereas a $100 USD bill can really only be used as paper, outside of being used as a currency for trading).

Also, more and more cryptocurrencies are being able to be used for all sorts of different stuff, AFAIK. I believe Japan declared Bitcoin a legal currency in November. You can use it for funding online casinos, although that's a very niche market. I think you can use cryptos to buy games through Steam. Hell, there are restaurants that are accepting bitcoin now a days. I've never tried it but apparently BTC is accepted at some places. http://bitcoinrestaurants.net/

I think there are also airline companies where you can use bitcoin.

Supposedly marijuana stores are having a big problem -- they can't use banks because that's some federal law BS so they have to keep their money in actual cash, which means they have to spend money on security and also still get robbed.

Quote: bobbartop

I still don't get it, One Nickel. I know, I'm simple, but where does the value come from?

People want a bit coin, others don't want to sell, the price goes up. The value is in perceived rarity of a limited quantity and what others recently have paid. I'd imagine people aren't asking the same questions you are and don't care, they assume it's all relatively safe for the time being. There is also the point no future coins can be created, they can only be discovered, the point nobody can know you have them unless someone you tell someone you have them as I understand it. They're not regulated like money services businesses requiring ID etc, though some links might.