reply to Rakeesh
Re: Would you pay for Usenet with Bitcoin? I would not call Bitcoin a fiat currency, which is a currency that a government has the ability to print at will in unlimited quantities. It takes a lot of work to "mine" a Bitcoin, and the number in circulation will eventually become a fixed number when the supply of new ones runs out. But like any currency, a Bitcoin will become worthless if no one wants to hold them. That's the only thing that keeps the value of the US dollar afloat: the fact that so many people, corporations, and governments in every country in the world choose to hold them. If that confidence ever ends and everyone starts dumping them in favor of another currency or exchange medium, the US dollar could conceivably become completely worthless.
The safest way to use Bitcoin (or any unstable currency) is to exchange them for dollars as quickly as possible. Holding onto them long-term is a very risky gamble, as the future value is anyone's guess.
The US dollar enjoys what is called the "Reserve Currency" status. If we ever lose that status, which is very likely in the next 10 years and the World Bank has even discussed going to a more stable currency by 2018, we would see a shit storm of epic proportions the likes we have not seen and will make the 2008 economic collapse pale in comparison. The value of our dollar would drop like a rock.
Normally when a country prints money, it creates inflation. The more of that currency in circulation, the more it devalues. However since our currency enjoys this special reserve status, inflation doesn't have the usual impact that it should have. We can print money, run the presses 24hrs a day 365 days a year, to pay off our debts. Now think about the countries that have loaned us money. Do you think they like us paying back our debts by making money out of thin air? Just let that bit fester in your head for a bit. IDK about you, but if I loaned someone some money and they had a printing press that made money to pay me back with, I would be pissed especially if I couldn't do the same thing.
When you bypass the dollar and start trading in another type of currency, you devalue the dollar. For example Iran, which some of our politicians want to start a war with, wants to trade oil for gold with India and China. This is some serious business because it affects the dollar. It is no wonder that some of our politicians want to war with Iran. Because if this starts catching on and more people start trading in gold, guess what, our dollar will drop like a rock.
Food for thought:
A dollar cannot be made without our country going into debt. Google "Fractional Reserve Banking", it is a debt based system.
"The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default. What I think the S&P thing did was to hit a nerve that there's something basically bad going on, and it's hit the self-esteem of the United States, the psyche."
-Alan Greenspan former Federal Reserve Chairman on Sunday's Meet The Press Aug. 7, 2011
Now getting back on topic, sorry for the rant, here is Usenet provider that only takes Bitcoin »www.bitusenet.com/faq . I saw this posted on FST.
Bitusenet uses Readnews. Also the service is roughly equivalent to $10-11/month
..thought provoking post..
reply to sandman_1
Thank you for the "rant", it is such a breath of fresh air to know that there are other people out there that are wise to the ponzy scheme that is the Federal Reserve...they go on printing and stealing our wealth right out from under us, it's frustrating to say the least as they actually penalize those of us who try to save, they keep interest rates at zero to prevent the whole system from collapsing...everyone do yourselves a favor and start investing in something that people will always be willing to trade for and accept, ideally this is gold but silver is an excellent alternative also - its value is highly distorted because the banks fix the price of silver through fractional reserve banking as well.
Mullica Hill, NJ
problem is the gold standard just does not work any longer.
But really I never understood it as a ponzy scheme. Though I do know banking as an industry from the reserve on down is never to be trusted even if I keep my money in a bank.
I cannot trust people that, crash an economy, get tax dollars to stay afloat and still get their seven figure bonus.
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports
Actually the Gold Standard does work and keeps government spending in check because it, the government, can only spend what it actually has. When Nixon took us off the gold standard, it was the death nail for this country. Our country has been steadily going down hill since then.
Also gold is a good indicator of a weak currency. The higher the gold prices the weaker the currency. Anyway people need to be aware that there is a storm coming and prepare for the worst. Remember the bread lines in the USSR back in the '80s? I can see that happening here.
said by sandman_1:Agreed, I am storing food and buying bullets - the dollar meltdown is only a matter of time - people aught to have heard Ron Paul's warnings...
Anyway people need to be aware that there is a storm coming and prepare for the worst. Remember the bread lines in the USSR back in the '80s? I can see that happening here.