But hasn’t the security which can’t be hacked always been a big selling point?
1 Like
Security tech is not stagnant. Its developing too. Some companies approach the security checkpoint from different angles or entries. AI will play a large role in security as well.
1 Like
Volatility is leveraged or used to make money and profits every day in the markets, but a CBDC will make crypto less volatile.
CBDC stands for Central Bank Digital Currency. The big banks globally will be working with their governments to embrace a CBDC.
How CBDCs Differ from Cryptocurrencies and Stablecoins
CBDC: Centralized, issued/controlled by a central bank/government, stable value, legal tender, low volatility. Privacy is often a concern because transactions could be traceable by authorities.
Cryptocurrencies (e.g., Bitcoin): Decentralized, no central issuer, highly volatile, not backed by any government, used more as speculative assets than everyday money.
Stablecoins (e.g., USDC): Issued by private companies, usually pegged to fiat (like USD) and backed by reserves, but not directly by a central bank. They bridge crypto and traditional finance but carry some counterparty risk.
In short, CBDCs represent state-controlled digital money, while crypto is market-driven and decentralized.
1 Like
So…a vehicle for speculation, like I said.
Stable coins and cbdc are more usable, but what role do they really fulfill that regular currency doesn’t?
BTC peeps dont seem super worried about Quantum encryprion breaks, from what Ive read on it.
Whistling past the graveyard maybe, but the Imner Circle BTC dudes aren’t tripping balls.
And to be clear I have absolutely no idea what I’m talking about re: crypto. Or anything for that matter.
I just thought it was interesting news and figured I would share.
2 Likes
Great Q.
They serve the same purpose, as they are pegged to “regular” (aka fiat) currencies, but in the digital space - which has advantages.
For example, how quickly can you take the money in your bank or wallet and have it in a ~5% HYSA (high yield savings account)? And then, how quickly can you take the money in that HYSA, unfreeze it, and use it otherwise? With stablecoins like usdc, the answer is instantly. There are many uses similar to this for things like lending, transferring, buying, etc in the digital world (and growing).
Money in the digital space will soon resemble digital communications vs analog ones. For example - “I have an answering machine. Why would anyone need voicemail?”
Regarding BTC - it was born of the 2008 financial crisis as a response to governments endlessly printing “regular money” to bail out irresponsible actors. Every time they do this, and they do it regularly, it “costs” you money by decreasing the value of the money you hold and earn. It’s the reason you get a 5% raise, but eggs cost 15% more every year.
- There are $100 in the world.
- Jon has $1, or 1% of the world’s money. (He’s rich)
- Jon’s govt prints $900. There are now $1,000 in the world.
- Jon now has .1% of the world’s money.
- That’s a massive drop in Jon’s (and everyone’s) spending power.
BTC cannot be printed or double spent. It is scarce (meaning there’s a limited supply). It more resembles dollars when dollars were backed by gold than what dollars are today - but in the digital world. No govt owns it. No individual controls it. It is a global form of digital money that men have extremely limited governance over outside of being able to do things like make it quantum resistant, for example.
4 Likes
How challenging will that prove to be?
But then again, every headline seems to go nowhere these days
LOL…Poo Poo. Yes, ETH and BITC will be the major players left standing.
I am investing in Crypto through ETFs and just two companies right now. BMNR and BLSH.
I did sell off a big chunk of CRCL before it went down last week. I still have 100 shares left that got hit. Watching closely, it may recover depending on how the legislation is written.
I plan to continue to dabble more with blockchain and related crypto technology companies/tech.
https://x.com/SAMALTCOIN_ETH/status/2038593787560116376
1 Like
Extremely, i presume. I think AI + QC are going to challenge privacy and security in more ways than we can imagine.
Having said that, when i compare BTC’s security and scarcity vs a bank’s security + fiat inflation, i know which one i have more confidence in, and it’s not particularly close.
Note - “more confidence” doesn’t necessarily mean “high confidence”. I’d say my highest confidence right now would be in the “it doesn’t really matter - we’re all going to be f’d from every direction all at once soon anyhow” bucket. If they can crack BTC’s encryption, I’m certain PayPal, Venmo, Visa, etc will all have been broken as well.
The outlook isn’t rosy through any glasses atm imo.
2 Likes
I am talking about the value of ETFs related to crypto. Ex BTC. No change in value. I think if there was a realistic threat to integrity those would have plummeted.
crypto is phenomenal for laundering money. and it’s incredible just how fast you can rugpull people into stealing their money.
even some pretty famous powerful people use their positions to do so.
it should be regulated, like any monetary system. But the only real way that will happen is if the wealthiest lose their ass on it.
My son is a Computer Engineering/Cyber MS student at Carnegie Mellon. What I have learned has been enlightening to say the least. I am not an expert and honestly he isn’t either yet, but one of his opinions stuck with me. Keep in mind this is my translation, given that I am not in tech. He said that cyber has barely scratched the surface on both a defense and penetration side. AI is only starting to be introduced at that level. It had prior uses before in automating brute force attacks and other routine applications, but now they are using the processing power to generate new strategies entirely. He said there will be an exponential growth curve in this field over the next 3 years. And if someone makes a true artificial super intelligence in that time, that window changes to 6 months.
2 Likes
Dumping SOL is inreresting. My limited research made me feel SOL had a future in the digital payments space as a backbone. I guess if all other coins beyond BTC and ETH are shitcoins long term in his opinion, thrn being a backbone to shit doesnt make sense to keep.
1 Like
This.
Also.
Can’t hack Phyz or confiscate Land.
Land you say? I’m not ready to retire yet but when I get there in a decade or so I will have been keeping a very close eye on how s*** government finances have become at that point and what Solutions quote unquote they’ll be coming up with to fill gaps (that don’t involve crazy talk like jubilees or revaluing gold or stuff like that).
To me currently that means watching what poorly run municipalities and states are doing as far as ratcheting up taxes on land transfer which is a kind of capital control. You want to move out of California or Illinois right now? Going to have to pay a little bit more in blood at the closing table then you have in the past and, when I say past, I mean some of the legislation being kicked around is trying to reach back in time to claw back from transactions years ago. Expect more of that because it’s the only way they can get at those assets.
Relatedly, there is an absolute f****** tidal wave of money in Roth Ira’s that are going to start coming out tax-free and the politicians and constituencies that like taking from others are going to get really twisted up about that at some point. Not today not next year not even 5 years from now. But I don’t trust them to keep that compact as there really hasn’t been a giant drawdown of Roth IRA money tax-free yet but it’s coming…. and it’s going to put a big old hole in government budgets and create a lot of envy. That usually never ends very well for the people that have exposed assets that aren’t part of the protected class on the top because they bought and paid for the protection or the protective class on the bottom because the politicians have used that money from the top to pay the bottom for their votes through Transfers and Promises
So what do you do being part of the Great Exposed Middle?? Was thinking about this yesterday while I sit on a field worki case…watch and wait and watch and wait… and you do the same thing all the super rich bastards do you convert that cash into a hard asset you can borrow against (land/house/farm/rentals whatever) and you pay your interest with a big smile on your face instead of pay income tax on it.
2 Likes
Not necessarily true. I retired from running a Cyber company that developed products for the government. I’m a Computer engineer by trade.
Industry has been working on new algorithms for years that are quantum resistant and have roadmaps on updating the security equipment with these new Algo’s. Most of the work is around the key exchanges and key generation techniques used when establishing secure connections and signing transactions.
Years ago it was thought Elliptic Curve algorithms (referred to as ECC) would be good for 20-30 years. They used smaller key sizes than the traditional RSA used but were stronger in the key exchange algorithm. The problem is Quantum computing has shortened that life dramatically so new Quantum Resistant (QR) algorithms have been developed to replace ECC.
Banks and government are already looking at updating the Security equipment they have to address this, most companies like the one I ran have updated in the pipeline so that companies won;t have to “Forklift” and replace all the equipment, just update them.
Crypto is based on block chain which uses ECC algorithm to sign each transaction and create a chain or ledger of that transaction as that “Bitcoin” moves around from owner to owner. So the Crypto you buy you can autheticate as being real and the Crypto server can validate you are the owner.
Now, the rub here is how do they update the ECC algo’s used for the millions of transactions that have occurred and insert a new QR algo ? They can implement something new for any new transactions but any Crypto being held would be susceptible to being hacked and the ledger changed.
Whereas Banks and other industries can do a update on all their systems to convert their transaction based security to the new algorithms because those are typically one and done transactions.
It’s going to be interesting to see how agile the Crypto companies are in updating their servers that handle the Crypto transactions.
3 Likes
Verrrry interesting
Thanks for sharing @CuriousHusker.
Definitely not an expert here and love reading through everyone’s thoughts.
2 Likes