Posted: Jun 22, 2019 1:09 am
by jamest
tuco wrote:Alright, thanks. So if it's pegged to fiat, it can be used to make money just like fiat or?

Well, you can make money in fiat from investing it in stocks/property or a business, but the major problem for all digital assets at the moment is one of mass adoption, or the lack thereof. For instance, I'm not aware of any houses for sale in terms of bitcoin's price. Nor can I buy shares in Facebook, or any company, with bitcoin. This issue of adoption is improving every year with more and more people/companies accepting crypto as a means of payment, but until mass adoption occurs making money from digital assets will be confined to trading on the instability of the value of those assets. Except for stablecoins, of course, like Libra.

Fiat goes up and down .. not as big profits/losses like with more volatile commodities/currencies but nevertheless.

That's all relative to other countries. The value of the US $ has diminished (relative to itself) approximately 95% in just over a century, but there are currencies out there where such nosedives can and do happen overnight. Venezuela, for instance. The problem is that with the current state of the US economy (its debt), that the US dollar itself is poised to be the next Venezuela.

Personally, I do not quite get why should I trust (with my money if I had any that is:) FB but not the US government(?) or bank but I admit am I ignorant about these matters.

Well that was my point: that Facebook and Libra, being centralised, are no better. Indeed, being centralised and a threat to the banking/economic status-quo, you'd be a fool to do so anyway.

I've specifically advised everyone here to divert their wealth away from centralised control.