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El Salvador adopted Bitcoin as national currency?

Discussion in 'YachtForums Yacht Club' started by Drifter, Dec 24, 2021.

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  1. Drifter

    Drifter Member

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    Any boat builders moving to El Salvador now that they adopted Bitcoin as their national currency? There are rumors that Turkey might be the next to accept.
    Last edited by a moderator: Dec 24, 2021
  2. Capt Ralph

    Capt Ralph Senior Member

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    Rumors or BS.

    I fear you found an internet BS lead and believed it as factual.
    Any real news leads on this mud?
  3. olderboater

    olderboater Senior Member

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    Actually, the adoption of Bitcoin as legal tender in El Salvador is fact. They had already adopted the US Dollar as their legal currency and now Bitcoin joins it. All merchants must accept it. Part of the reasoning is that over 70% there do not have bank accounts and 22% receive and send remittances, mostly to the US and often with high fees. The President is a strong supporter of Crypto Currency. He has been called both "in love with his own power" and "the coolest dictator."

    This certainly would not cause any boat builders to move there or otherwise and really has nothing to do with boating unless you're stopping in El Salvador.
  4. Slimshady

    Slimshady Senior Member

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    It won't end well for the people there. Lots of bad outcomes for very limited possible gain. "A fool and their money-----"
  5. Drifter

    Drifter Member

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    Ancient humanity used shells and stones as money until people realized they could just go collect more money on the beach. Enter gold and diamonds, due only to their scarcity. Otherwise, they're just shiny forms of dirt. The US was removed from the gold standard in 1971 and the volume of gold being mined and extracted increases 10% every year thanks to new mining technology, so it's actually losing value as its scarcity decreases. The Fed is decreasing the value of the US dollar with all this money printing. Consumer's buying power decreases when all this new money eventually works its way into the economy, leading to dramtic inflation, as we are now experiencing. Bitcoin's volume is finite. It's more portable and divisible than gold. That's why it's nicknamed gold 2.0. Boat builders might want to keep it on their balance sheets if they believe its' value will increase as a better hedge against inflation than gold.
  6. Scallywag

    Scallywag Member

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    Drifter "gets it". I have so much to say about this, but this is a yachting forum.
    Drifter likes this.
  7. rtrafford

    rtrafford Senior Member

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    I'll challenge the concept that Bitcoin is "finite". The Lords of Bitcoin modify the math formulas for the creation of Bitcoin at their will, either slowing down or speeding up the creation of more product. Bitcoin is no more "safe" or "valuable" than any precious metal or printed currency. The bank always wins.
    RER likes this.
  8. Slimshady

    Slimshady Senior Member

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    A fool and their money are soon parted.
  9. Drifter

    Drifter Member

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    Mostly wrong. Cryptocurrency volumes are either finite or infinite. I believe you're referring to Ethereum, whose volume and algorithm can be changed by the owners. Bitcoin's volume is locked and the algo cannot be changed unless one entity some day owns 51% of all Bitcoin, which is nearly impossible. Layers are being added on top of the Bitcoin network to improve ease of use, but the underlying network is not changed. Ancient humanity assumed value to gold and diamonds for one reason: scarcity. But now the volume of gold is increasing 10% per year thanks to mining and extracting from sea water and sewage (remember reading gold on the side of cereal boxes?). SO the value of gold should be declining as supply increases. One of the funny things about the movie "Don't look up" is that if a meteor showered everyone on earth with tons of gold, its value would go to near zero due to its abundance, like when they used sea shells for money. Everyone could just collect more. If we're all rock stars, then no one is a rock star. Bitcoin has absolute scaricty, superior portability, divisibility, and practical applications than gold. Silver should be worth far more than gold since it has far more useful in industry and computer technology, but its volume is far less scarce than gold. So again, it comes down to Scarcity. The Fed expanded the money supply by 26% since early Covid, so dollars are worth less, not more. Inflation is merely currency devaluation. The bank didn't win in the days when people were bartering chickens, goats, and produce. But those are not easily divisible nor practical. Bitcoin is simply a worldwide distributed ledger. One could memorize one's Bitcoin codes and travel to El Salvador to buy a yacht.
  10. Drifter

    Drifter Member

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    The banks are rapidly devaluing your money. What actions will you take to store value?
  11. Drifter

    Drifter Member

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  12. leeky

    leeky Senior Member

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    Even you admit that Bitcoin's volume can be changed. That fact isn't altered by you saying that it's nearly impossible. As long as Bitcoin is governed by people and not the laws of physics, anyone runs the risk of losing wealth by using it.
  13. rtrafford

    rtrafford Senior Member

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    Cool story, but...

    The Bitcoin algorithm incorporates what is known as network difficulty. This concept can be thought of as being the measure by which one can determine the difficulty of finding a correct hash value in the proof of work mining process. This difficulty can change based on an increase or decrease in the target hash value. For example, if the rate at which valid hashes are being discovered on the network increases, then the network target hash value will be lowered. This has the effect of reducing the number of valid hashes that are capable of being discovered. Conversely, if there is a decrease in the rate of correct hashes being discovered, then the network target hash value will increase in order to enlarge the number of valid hash values that can be found.
  14. Drifter

    Drifter Member

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    Anyone with $410 Trillion with a T dollars can buy enough at current value, AND, ASSUMING half the HODLers are willing to sell 10 million BTC. Know anyone with that anywhere near that much money along with 10 million sellers? Sorry. Life on Earth could cease to exist by getting get hit with a meteor, too., but...
  15. Drifter

    Drifter Member

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    The Bitcoin algorithm was programmed from the very beginning to half the number of new BTC being mined every 4 years. No one has changed this algorithm which halves the number of new BTC. Its right on schedule.
  16. Slimshady

    Slimshady Senior Member

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    Certainly not buying crypto currency. I can't count the ways that it will all come crashing down. You spend your money the way you see fit. I'll do the same.
    cleanslate likes this.
  17. leeky

    leeky Senior Member

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    Who wrote the algorithm? What's to stop them from arbitrarily changing the algorithm?
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  18. rtrafford

    rtrafford Senior Member

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    meteors don’t fly via an arbitrary algorithm. You seem determined to believe it is not arbitrary and fungible. Hope that works out well for you.
  19. cleanslate

    cleanslate Senior Member

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    Let me guess…the name of your fantasy yacht ….”Patriot” aka “ Pat Riot” with a machine gun image plastered next to it.
    Cash is king …
    Always will be .
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