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from the everybody-like-bubbles-until-they-pop dept.
Something odd is going on in finance this week. One unit of BitCoin briefly exceeded the value of a troy ounce of gold before it fell back. However, this occurred during Ethereum rallying to its current peak above US$100. Perhaps this is like comparing apples, oranges, and dog-biscuits but — as of this week — we now have a situation where Ethereum is well above the US$1 credibility threshold of most alternative digital currencies and, to a simpleton, BitCoin was more valuable than gold.
What changed? Nothing obvious. Banks have teams of shirking resume builders working on trendy projects and they've been working on digital currencies for years. Likewise, tranches of investments funds have been going into technology for decades. However, after puffing and bursting a housing bubble and educational bubble, is this the next place to jub other people's money? Is it Charles Stross' Accelerando coming to life? I don't know but I'll be very concerned if there is a financial wobble within the next month.
(External hyperlinks via Vinay Gupta, an Ethereum contributor, Ethereum evangelist and all-around great guy who helps the homeless.)
[Ed Note: Asking what is Ethereum? Me too. Additional information on the above topic can be found at the IB Times]
(Score: 1) by WillR on Monday May 08 2017, @02:49PM (4 children)
(Score: 2) by archfeld on Monday May 08 2017, @07:37PM (3 children)
Because bit coin is international, and can be exchanged in many places for several other types of currency, both virtual and actual, and virtual currencies can be generated and exchanged by agencies outside the traditional banking circles which are very well regulated and interdependent. While the US Fed's aren't the most current or reactive to virtual currencies. Heck they just noticed that there are other methods beyond wire transfer available. The motions of virtual currencies are not so well understood, thus it is much harder to follow and predict.
For the NSA : Explosives, guns, assassination, conspiracy, primers, detonators, initiators, main charge, nuclear charge
(Score: 1) by WillR on Tuesday May 09 2017, @12:54AM (2 children)
Right, I get the advantage of shuffling your millions between different cryptocurrencies and using several brokers to cash out, it's the cash IN I don't get. How do you turn 50,000 $20 bills in a bedroom in LA into cryptocurrency without the money going through a conventional bank account somewhere under US jurisdiction on the way?
(Score: 2, Interesting) by tftp on Tuesday May 09 2017, @02:34AM
How do you turn 50,000 $20 bills in a bedroom in LA into cryptocurrency without the money going through a conventional bank account somewhere under US jurisdiction on the way?
Something like this, perhaps? [localbitcoins.com] I clicked on just one random link, and the trader is willing to accept up to $20K in one transaction.
(Score: 2) by archfeld on Tuesday May 09 2017, @04:29AM
The money overage I was thinking about is in stash houses in Mexico as a result of drug trafficking. I am sure that Colombia has a similar locales.
http://www.veteranstoday.com/2016/09/19/22-billion-dollars-found-photos-of-a-mexican-drug-lords-home-after-being-raided/ [veteranstoday.com]
https://www.google.com/search?q=drug+money+stash+houses&tbm=isch&imgil=JEwzyFciEhhTvM%253A%253B1PvNyMLuWtiABM%253Bhttp%25253A%25252F%25252Fwww.snopes.com%25252Fphotos%25252Fcrime%25252Fdrugmoney.asp&source=iu&pf=m&fir=JEwzyFciEhhTvM%253A%252C1PvNyMLuWtiABM%252C_&usg=__YK1JjxqgLIOXo0lu7TOTjysfPSU%3D&biw=1273&bih=617&dpr=1&ved=0ahUKEwj149T7--HTAhWFLmMKHTglDx8QyjcINg&ei=wkQRWfX6L4XdjAO4yrz4AQ#imgrc=JEwzyFciEhhTvM:&spf=196 [google.com]
For the NSA : Explosives, guns, assassination, conspiracy, primers, detonators, initiators, main charge, nuclear charge