Crypto Sold my house and put it all into bitcoin.

I think you're forgetting that a high percentage of society are useless morons which is why they are up to their eye balls in debt. Nothing to do with our current government which I think is actually pretty great.

 

Haha. Yes probably. But it’s not just the debt, it’s also the amount of people just barely surviving living paycheque to paycheque .

 

It’s put us in the position where worldwide we’re staring down the barrel of interest rates going negative. The amount of people living paycheque to paycheque has skyrocketed.

 

The problem of people living paycheque to paycheque has nothing to do with fiat currency, it has to do with some people being short-sighted and spending whatever money (fiat or bitcoin) they have in the month between paycheques.

Bitcoin works like a move convenient and better-tracked version of gold and we had gold as a currency in the past. During that time we still had very poor people.

 

In my experience this is untrue. I have close friends and family members living paycheque to paycheque. They are living to a strict budget and are only spending money on necessities. In my opinion we’re seeing cost of living rising at a far faster rate than wage growth.

 

Like I said, these issues are complex, but yes if someone consumes drugs (whether illegal or legal) they are at least partially at fault for their own actions (abuse of illicit drugs is often tied to past trauma). Do you disagree or is the government also responsible for everything you put into your own body?

The article I posted was UK based, but it's still relevant. A lot of banks around the world operate under the same framework i.e. Basel II/III.

I don't have time to watch a 3 hour video to take whatever point you were making from it, but I would recommend not believing everything you see on YouTube about lending and banking, there's a lot of misinformation circulating.

 

I think the government should have no say what I choose to put in my own body. As long as I’m causing no harm to others it’s my choice. I don’t take drugs but if i choose to and its not harming other people why does a government have any say?

 

You are making my point. You seem to have an inconsistent view.
That is you think the individual should be accountable for responsible drug use, but government should be accountable for responsible debt use... why?

 

Government have the biggest debt of all! They fractional reserve banking which is no better than a ponzi. They together with banks control policy. They are the ones causing harm to others via their actions

 

But of a thread drift here.
Regardless of all that, there is a place for Bitcoin out there and with inflation inbound this is good news for an asset with a capped supply that many of those who are involved with it view as some kind of digital gold. It has gained tremendous credibility over the last 5 years and what the future holds for it is anyone’s guess. Personally I would not bet against it having another of the crazy rallies/bubbles and see great opportunity in having exposure to it.
You must be sitting on a pretty nice gain at the moment too @Laker so well done.
Do you have a long term plan to take some of the gains for your daily expenses at some price point?
Interested to see what is your long term strategy if you don’t mind sharing that is.

 

Because they look after you when you OD

 

I only plan to take profit to buy another property. At this point in time I have basically all my money in bitcoin so may also need to sell bitcoin for living expenses. I’m hoping during the next few years as the ecosystem develops it will become easier to spend bitcoin as I’m not entirely happy with any of the debit cards that exist today. I don’t want to hold any of my wealth in aud.

 

My two questions:
1) What makes bitcoin immune to inflation?
2) If bitcoin becomes the "new standard" of exchanging goods and services, will you ever be able to borrow bitcoin to leverage into investments?

 

1) Bitcoin mining rewards halve every four years. So total supply being released into the ecosystem is cut by 50% every 4 years.
2) Plenty of this already. I actually used bitcoin as collateral on block-fi to cover my subdivision costs. Can have instant access up to 50% of bitcoin value.

 

And the supply is mathematically determined (& capped), so there is certainty around the number of bitcoins that will ever be in existence.

 

Also worth noting that bitcoin (or cryptos in general) don't have to become the new standard to succeed, they simply need to be a recognised alternative.

 

Bitcoin will always be somewhat limited, it can certainly be used to pay for internet items but probably none of the essentials (at least not for decades). You will have to have money in AUD. Just use it like an "everyday account" and the Bitcoin can be a "savings account".

 

It will never replace fiat currency unless the economy collapses. Bitcoin doesn't have inflation and would therefore not be able to service a fast economy like we have now. Inflation allows people to borrow money at lower interest rates which makes them buy things today rather than saving. That speeds up economies and makes them more valuable but also more resilient. Fiat was a great advancement over gold for the economy. Bitcoin is like gold but well tracked and useful for spending.

Bitcoin is immune to inflation because it's capped. It's similar to a house in a suburb that is surrounded by other suburbs. The suburb can't grow and therefore it can't increase supply and decrease the house value.

I personally like Ethereum because it's more flexible and could be honed to replace fiat currency and vastly improve it. Bitcoin will be the gold upgrade.

 

For those interested, a good clip of Raoul pal’s bullish take on the current environment of bitcoin.
https://youtu.be/j8pqQuEbWHw

 

Bitcoin's profitable days is now at over 98%. Pretty good as an investment!