Your thoughts?
dennis1219
Posts: 267 ✭✭✭
This forum is full of highly intelligent members. On another board, a new member with a grand total of (1) post starts the following conversation:
Instead of melting or selling your scrappy metals or items, you can store them in the AirgeadCoin facilities, exchange thier value for airgeadcoins and keep their value because there are no fees for storing your precious metals.
What are your thoughts on this Cryptocurrency?
Here is the Airgeadcoin Website - https://www.airgeadcoin.io/
I am currently participating in the Airgeadcoin.
I got a headache researching this. Any member familiar with Blockchain or crypto currency can provide a level of education would be deeply appreciated.
We live in a rapidly changing world, and this old timer is stuck in Mayberry with Andy.
Comments
I have a philosophy about things that involve money. Try something on a small scale if you are interested. Your level of understanding gets better and better as the stakes increase. The thing is, we don't live in Mayberry anymore - so be extremely cautious with real money.
I knew it would happen.
If, in a solicitation for business, they can't spell "their" correctly, then I deem them to be careless, irresponsible, ignorant or worse. No business from me.
Knowledge is the enemy of fear
When someone offers to store my gold and silver for free a big red flag goes up. No thanks. I'll store my own PM's.
Worry is the interest you pay on a debt you may not owe.
I would not even entertain this as a possibility.....It makes no sense at all...I call that a 'lose/win' situation.....Cheers, RickO
Turns out, I’m a natural at looking after my own metals.
Agree. What is the benefit/upside? I'm taking enough risk owning PMs in the first place, why pawn them for a tiny crypto? Speculate that airgeadcoins become the NextBigThing?
Liberty: Parent of Science & Industry
If ya gonna exchange your metal for a printed promise, might as well make if for the best one going - dollars.
Give Me Liberty or Give Me Debt
I'll pass, thank you !!!
A few years ago the idea of backing Bitcoin with something like rice was floated.
Has it happened?
The problems are obvious and not so much.
Where do do store gold, silver or even flawless diamonds for free?
Diamonds may be small but theft insurance is not free.
What about currency to stored item value?
The idea is float the price. Heh. Things go well with 1 coin equalling an ounce of silver on day 1. But this is a crypto craze. Silver-crypto crazily goes from $16 to $6000. The price floats. Deposit an ounce of silver for $6000? There's arbitrage there. Sell the silver-crypto and pocket almost $6000.
Oh?
I'd have to deposit $6000 of silver for 1 silver-crypto? Ok. That's all well and good except you're mailing off good silver (mail costs) for a coin you hope goes up crazily. What if it goes down? Would it not have simpler to sell the silver for dollars or just store it yourself and assume the dollar float risk?
I can only speculate about the silver-crypto float risk.
Non-backed, traditional cryptos do not have an infinite amount of coins, unlike infinite dollar printing. They hit a max and that's it. No more. This leads to deflation instead of inflation. As more people pile in, the price goes up -- supply and demand. What 1 coin buys today may only take .1 coin next week. Price deflation.
This is also the source for the wild value swings. As people pile in an drive up the price, others will dump ... often a cascading dump ... into the strength. Prices flop then it gets bought up again. (For this reason I do not see them as a store of value. I do see people transacting with them, but the speculation makes the news. I'm not sure which population is larger)
For a silver-crypto the question starts with infinite silver-crypto generation or finite? If it is infinite ... What's the point of ditching the similarly infinite dollar?
If it is finitely limited, then you have limited people in it, but some will arbitrage the dollar-silver/silver-crypto price. Again, what's the "no dollar" point? Even without arbitration there will those price swings from speculators.
And never forget the free storage has no room for rent nor insurance... A unrealistic plan from the get go
An Infinite number OF DIFFERENT CRYPTOS.
-> game over
Liberty: Parent of Science & Industry
An infinite number of cryptos isn't like unlimited dollars. It is more like an infinite number of countries.
It's still bad. As more are created there is the possibility of going beyond saturation. Beyond saturation lies a thinner number of interested parties across the spectrum. Forgetting about price appreciation, the question is about how many will accept a coin. It may become hard to find someone to even take the coin on a market to give a dollar equivalent, or take it in a goods and services transaction.
I am very wary of even new ICO (initial coin offerings) due to possible fraud... and that no one will care to use it or have it. And this is now... today.
I really don't understand why anyone takes any crypto seriously.
Knowledge is the enemy of fear
Thanks for all the comments. I also prefer physical possession of precious metals (stored safely in a mayonnaise jar on Funk and Wagnall's back porch). Primarily for me, I can’t invest in something that my logical/calculating brain doesn’t understand after research. That’s where I am with all these crypto currencies... I just don’t get it.