You do understand how tokenization works, correct? To shutdown a cryptocurrency, you have to totally shut down every single point where the distributed ledger contain and validated. Bitcoin can’t be shut down either this way. The information for exchange is turned into token forms and passed around the network. These transactions are stored in distributed ledgers. The Russia will be hosting the servers, and other countries which don’t play with the sanctions, the currency still lives.
If the ultimate goal of cryptos is to provide alternate currencies, you don’t have to shut them down entirely, you just have to make it a pain in the ass to use them as a currency.
Just for example…every time you sell Bitcoin its a potential gain to get taxed on. If you were to use Bitcoin as an actual currency you’d have potentially thousands of transactions to report at the end of the year, and you’d be responsible for knowing the buy price and sell price of each one, just like you would stock transactions. Should you be less than honest, well that’s the funny part, ledger’s crypto nuts always brag about leave a nice history behind for the IRS to buttf~~~ you with. If they ever do get popular all it takes is the IRS making very public examples of a handful of people who weren’t spot on with their taxes and a lot of people won’t want to risk it going forward when they are nothing but a ton of hassle compared to just sticking with dollars.
Yes, it is all in electronic form. It is just that tokenization decentralizes it, and eliminates points of vulnerability.
So instead of your currency being run by a government…its run, in some cases…by someone absolutely anonymous and you think that is an improvement?
Or better yet, your Bitcoin wallet gets hacked. Guess what, your f~~~ed. You’ll never see that money again. My bank account with dollars in it gets hacked? I have 60 days to report fraudulent activity and get my money back.
Exactly what vulnerability has crypto eliminated?
Now, the Petro may suddenly not be able to be redeemed for oil, for the country doing things, which makes it useless that way. But the more it is uses as a placeholder, the more it serves other purposes.
What other purposes? Venezuela’s own people basically aren’t allowed to buy it and use it as a currency, foreign investors can’t exchange it for oil meaning the concept that its backed by oil is not true its just bulls~~~ the Venezuelan government spit out, and you aren’t getting a stake in a business ownership like you would had you just bought stock in a company.
It serves literally no purpose. Its not going to be used by Venezuelans as a currency. The Venezuelan government claims its backed by oil, but you can’t exchange it for oil…so no…its not backed by oil any more than our fiat currency is backed by gold. If you want to invest in oil Petro’s basically get you no actual stake in oil ownership or ownership of a company…so why not just go for stock that grants you partial ownership of a company?
Did I miss something? What are these “other purposes” you speak about?
And if you get all the countries out there who are under attack by U.S sanctions, then you will have an alternative financial network happening. Of course, the government then try to shut down centralized exchanges to block this. But, decentralized, and even distributed, exchanges are coming. I am actually looking into distributed exchanges myself, and positioning there.
What stops them from doing that with their traditional currencies? If we for example want to place sanctions on Russia and Venezuela, nothing stops them from working together using Bolivars and Rubles. Nothing magically improves because Venezuela tries a reset on its failing currency, and if US/Euro have placed sanctions on Venezuela to limit our purchase of their oil or their access to our banks, nothing will change when they offer Petro instead of Bolivar.
IGMOW (I Go My Own Way) 1 year, 10 months ago.
