Canadian Money Forum banner
561 - 580 of 670 Posts

·
Registered
Joined
·
8,991 Posts
The sad part is that CAD does change in value but you perceive 1 CAD as 1 CAD. In reality it declines in purchasing power every year.
The sad part is that you think perceiving 1 CAD as 1 CAD is a problem shows your issue.

1 CAD is 1 CAD, just as 1 Doge is 1 Doge. What you fail to understand is that our concepts of what 1 CAD is are not the same.
 

·
Registered
Joined
·
5,406 Posts
That's interesting. That's right, why would I buy a car for 1 Bitcoin this year when I could buy two cars for 1 Bitcoin if I wait one year?
Soo then why would you buy a car this year when you can buy bitcoin?

The general consensus seems to be that it is too volatile or risky. Then this forum will debate which 1% savings promo or GIC rate to chase when CAD has inflation.

I know I spent money in the past because saving seemed futile at those rates.

Therefore Bitcoin has to stabilize. But when Bitcoin will try to stabilize, all the people who hold it as an investment instead of holding it as a currency will start selling their Bitcoin (because they aren't an investment anymore), which would make it crash hard.
Fiat was backed by the gold standard until 1971. Gold seems relatively stable but people still hold it and people still buy things even though they should save and invest.

We are just living in a modern day gold rush. Bitcoin is probably much easier to acquire than it will be in the future. There are more people than bitcoins

Not everybody went west during the gold rush. Some stayed home because it was safe and stable

So there's still a lot of volatility ahead of us...

But anyways it will be forced to stabilize at some point because obviously a financial asset cannot growth at that pace forever, otherwise Bitcoin would be valued $1Q in just a few years, which makes no sense.
It's called an S curve and it happens with mass adoption

We are still at the bottom of the curve because far less than 10% have adopted bitcoin. As adoptions picks up the price increases with demand (supply is locked) until it levels off at about 90% adoption

I lived with Euro and USD and I can tell you currencies are not as stable as people think. You just don't see it in your CAD world because retailers absorb the volatility for you. The price of imported cars would be all over the place year to year otherwise

Imagine a global standard unit of denomination with a mathematical rate if issuance. It makes too much sense
 

·
Registered
Joined
·
2,034 Posts
currencies are not as stable as people think
I agree. From 2012 to end of 2015, the best "investment" a Canadian could do with his CAD wasn't to buy his Canadian TSX (XIU.TO), but to buy USD because in 2012 the USD was worth CAD $1 while at the end of 2015 the USD was worth CAD $1.40.
 

·
Registered
Joined
·
4,416 Posts
I agree. From 2012 to end of 2015, the best "investment" a Canadian could do with his CAD wasn't to buy his Canadian TSX (XIU.TO), but to buy USD because in 2012 the USD was worth CAD $1 while at the end of 2015 the USD was worth CAD $1.40.
If you chose a different time span, the opposite could be shown. Based on your example, you could convert your salary checks to US$ and be ahead. But that would not make sense, because your living expenses are in C$ and are the same regardless of the exchange rate.

I have arranged to earn some of our dividend income in US$, but only because before Covid, we spent a fair amount on snowbirding in the USA.

Of course the small C$/US$ FX changes do not compare with the insane fluctuations in Bitcoin prices. Would you convert your salary deposits into Bitcoins? :) No? Perhaps because it's price is unstable and risk is very high.

Rainy day here, so please ignore my ramblings :)
 

·
Registered
Joined
·
8,991 Posts
If you chose a different time span, the opposite could be shown. Based on your example, you could convert your salary checks to US$ and be ahead. But that would not make sense, because your living expenses are in C$ and are the same regardless of the exchange rate.

I have arranged to earn some of our dividend income in US$, but only because before Covid, we spent a fair amount on snowbirding in the USA.

Of course the small C$/US$ FX changes do not compare with the insane fluctuations in Bitcoin prices. Would you convert your salary deposits into Bitcoins? :) No? Perhaps because it's price is unstable and risk is very high.

Rainy day here, so please ignore my ramblings :)
I wouldn't convert my savings into bitcoin anymore than I'd buy Diesel fuel.
It isn't an investment, and it's not useful to me.

The big thing blockchain detractors miss, is there are many uses for this technology.
The big thing that I think blockchain promoters are is a valuation method beyond "it's gotta go up".
 

·
Registered
Joined
·
5,406 Posts
The point was that currencies aren't as stable as people think

If you read quarterly reports this is very clear as it has significant impacts on international business. People who spend the vast majority of their time in 1 country don't see it because retail knows they can't just swing the price of a car or a book all over because of currencies

So your world expands to the USA and now you see there is a second currency. Great. I've been paid in EUR and USD and travelled to over 50 countries and can tell you currencies are far less stable than most people think. Some places cost twice as much for a Canadian to visit as they did 5-10 years ago

In a globalized world it makes too much sense to have a standard unit of value.. it also makes too much sense to have a mathematical formula for inflation of that unit

People live in familiar bubbles and don't like to open their minds
 

·
Registered
Joined
·
8,991 Posts
The point was that currencies aren't as stable as people think

If you read quarterly reports this is very clear as it has significant impacts on international business. People who spend the vast majority of their time in 1 country don't see it because retail knows they can't just swing the price of a car or a book all over because of currencies

So your world expands to the USA and now you see there is a second currency. Great. I've been paid in EUR and USD and travelled to over 50 countries and can tell you currencies are far less stable than most people think. Some places cost twice as much for a Canadian to visit as they did 5-10 years ago

In a globalized world it makes too much sense to have a standard unit of value.. it also makes too much sense to have a mathematical formula for inflation of that unit

People live in familiar bubbles and don't like to open their minds
That's why the big mac index is the most important index.
 

·
Registered
Joined
·
5,406 Posts
I wish people would take the time to understand the difference between cryptocurrency and blockchain.
Boost mobile is adopting blockchain to secure their user accounts (telcos lose billions to fraud every year) and a loyalty program far more advanced than bs airline points. Every single company will be doing this in a matter of years.

They will all be paying gas fees in crypto instead of building their own data centers. This is why SEC is about to declare layer 1 blockchain currencies as commodities not currencies. The monetization of computer processing is coming

Thinking crypto is a currency is thinking in terms of 2008-2014.. Boost mobile parent company Dish has accepted Bitcoin since 2014 and nobody cares. That said layer 2 transactions are just going live. You can now tip BTC on twitter instantly and free and you can buy a taco in El Salvador with BTC using layer 2 apps.

The blockchain is the settlement layer. People also don't realize that Visa transactions, bank transfer and stock trades take days to settle. Blockchains take time to finalize and cost money like any other networks. Layer 2 transaction is what we already use for fiat you just didn't think about it
 

·
Registered
Joined
·
16,784 Posts
I wish people would understand a lot of things.
People don't understand how adding all the additional processes required to transact in crypto is of any value to them.

Companies maintain security over their data by keeping records offline. Without doing so, a bank that was hacked would have no way to restore their business.

Keeping records on a pubic blockchain that could be hacked in the future is the last thing that a data security expert would recommend.
 

·
Registered
Joined
·
5,406 Posts
sags how did you become the voice of these data security experts? who are they exactly?

Most (like 80%) of major companies are already using private blockchains or developing them

Stop digging
 

·
Registered
Joined
·
8,991 Posts
People don't understand how adding all the additional processes required to transact in crypto is of any value to them.
What additional process?
It's easier and fewer proccesses to transact in crypto.

Lets say I go to on online store.
I send X bitcoin from my wallet, to your wallet. Done.
If I pay by Credit card, I give the store information, who validates the transaction through their provider, thorugh the network to my credit card issuer.
Then they report the actual transaction through their provider, through the network, and my issuer.
Then I get a bill, and I send money through some other system to my credit card issuer, likely an electronic payment through my bank.
Then my credit card issuer passes the money around (who knows how) and gives it to the merchant.

I don't see how all these added steps to use a Credit card are of any value to me.

Companies maintain security over their data by keeping records offline. Without doing so, a bank that was hacked would have no way to restore their business.
They don't keep their records "offline", they simply have a write once ledger. This has been standard for decades.
Which is exactly what blockchains are, a write once ledger.

Keeping records on a pubic blockchain that could be hacked in the future is the last thing that a data security expert would recommend.
The blockchain can't be hacked by changing the approved blocks. Once approved, they're read only.
 

·
Registered
Joined
·
16,784 Posts
Extra processes like......sending all your information to an unregulated cryto exchange, setting up a secure wallet, buying crypto for fiat at highly fluctuating prices, and then spending crypto to buy something with a purchase that is non refundable and can't be reversed.

Then to get your fiat back into your bank account.......reverse the entire process by selling the crypto at the previously mentioned exchange.

They will also pay a fee to buy and to sell the crypto......and have to wait an undetermined amount of time to have the transaction verified on the blockchain.

People could choose to do all of that..........or they could just tap their debit or credit card in a 2 second transaction.
 
  • Like
Reactions: agent99

·
Registered
Joined
·
8,991 Posts
Extra processes like......sending all your information to an unregulated cryto exchange, setting up a secure wallet, buying crypto for fiat at highly fluctuating prices, and then spending crypto to buy something with a purchase that is non refundable and can't be reversed.

Then to get your fiat back into your bank account.......reverse the entire process by selling the crypto at the previously mentioned exchange.

They will also pay a fee to buy and to sell the crypto......and have to wait an undetermined amount of time to have the transaction verified on the blockchain.

People could choose to do all of that..........or they could just tap their debit or credit card in a 2 second transaction.

I get you don't like or understand crypto.
But you're making up reasons
1. You don't have to send your information, or use an unregulated exchange.
- I've used crypto and I've never sent my information, nor do I use an unregulated exchange.
2. To use a CC you have to set up that account, which is far more work than setting up a wallet.
3. Crypto transactions are refundable and can be reversed.

Your argument that there are more steps with crypto are almost laughable.
There are far fewer steps with crypto tranactions, and if anything the transition from fiat->crypto or crypto->fiat is the problem anyway.
 

·
Registered
Joined
·
3,906 Posts
Canada has 3 BTC ETFs and the USA has 5 BTC ETFs pending approval in Oct

The others in Canada I believe are all ETH. Cathie Wood is using the Canadian ETFs
There are 5 in CAD that I can see:
HBIT
BTCX.B
EBIT
BTCC.B
BITC
 

·
Registered
Joined
·
16,784 Posts
The whole premise of "private" crypto is retarded.

The premise is to buy "private" crypto today because people will be obligated to buy it from you in the future at whatever price you decide.

And while this is happening, governments will supposedly allow a bunch of nerds and criminals to take over their currency and financial systems.

Sorry.......I don't see that happening.

Crypto has reached the point where it has been noticed by governments and regulators, and they will have to deal with it like China did.

There is no news coming out of the US that would convince me they are going to do anything but develop a FED stable coin.

The US initiatives currently under way.....including consideration of reversing a decision on banks holding cryptocurrencies.

 

·
Registered
Joined
·
8,991 Posts
The whole premise of "private" crypto is retarded.
That's like saying the whole premise of cash transactions are retarded.

Also you seem infatuated with this idea of crypto as a "currency replacement", not a tool that has many applications.

You're the kind of person who heard about "naked news" and would have said video streaming has no use, because it's only used for porn.
 

·
Registered
Joined
·
5,406 Posts
J Pow confirmed no intention to ban bitcoin - straight from the horse's mouth

No surprise there because it's not like anyone could ban it (most Chinese already use VPN to access facebook, google, wikipedia etc) CBDC absolutely should replace things like USDT. They could even just adopt the existing USDC like Visa/Mastercard are doing

Regulation and clarity is very bullish. Maybe J Pow aint so bad for an old feller after all


More impressive - a European bank made a very long and thorough proposal to MakerDAO today. Most boomers don't even know what a DAO is yet so this is extremely bullish

US should also approve their BTC ETFs in Oct as long as they stop bickering about how they can debase their fiat faster than they already have
 

·
Registered
Joined
·
16,784 Posts
You missed the part where Powell said........."take the word cryptocurrencies out of the sentence".

He is talking about stable coins, based on USD and subject to the same regulation as money market funds.

He mentions central bank stable coins, as an example.
 
561 - 580 of 670 Posts
Top