SDR and BTC

Lone_StarrLone_Starr Posts: 61 Copper ✭✭
I'm reading one of Rickard's books and in there he talks a lot about SDR's.

On the most basic level, what is the difference between an SDR and BTC?

Answers

  • GoldmattersGoldmatters Posts: 3,604 Admin
    edited December 2017
    I’m not aware of any blockchain technology associated with the SDR as of yet, though who knows what the future holds. That and the SDR seems to not be decentralized whatsoever as it is controlled by the IMF, basically just another fiat currency.
  • Lone_StarrLone_Starr Posts: 61 Copper ✭✭
    I think Lynette Zang has talked about ACC being tied to the SDR, something like that.

    On a very simple basic beginning, SDR's and BTC's are created out of the imagination and creativity of man, right? By contrast, Gold is believed to be created by supernova nucleosynthesis.

    I realize there are vast differences between SDR's and BTC's as you take the next step out but both are world money/currency, correct?

    As BTC grows in fiat price its, function will be for higher fiat value transactions (because of fiat fees) instead of smaller transactions like daily food and entertainment. Am I correct in that thinking?
  • GoldmattersGoldmatters Posts: 3,604 Admin
    edited December 2017
    I suppose at some level nearly everything could be considered to be created from the imagination and creativity of man right? Except clearly in the case of gold we are talking about physics.

    I would say though that bitcoin does require significant energy and effort to mine, so the cost of production is certainly not zero. Though in the case of a SDR it can simply be created out of thin air by pushing a button, which would be the primary differentiator as I see it, plus there is bitcoins use as a medium of exchange. You and I could (expensively) transact with bitcoin today, but we could not transact in SDR’s.

    I’m not sure what the future holds for bitcoin as far as transaction because there are clear flaws currently hindering that outcome ( rising transaction fees, confirmation times) thus the “forks” that have occurred.

    Surely its a speculative asset and has even performed in a weird sense as a hedge against a precious metals equity position.

    Note I said precious metals EQUITY position and not precious metals themselves. Physical precious metals are to be considered as savings and a store of value, thus unproven so far by bitcoin as its only 8 or 9 years old vs the 5000+ year history of gold and silver as money.

    So we are still in the experimental phase of bitcoin imo, but what an experiment it has been!!!
  • Lone_StarrLone_Starr Posts: 61 Copper ✭✭
    For the longest time I blew it off and closed my mind to the possibility. For a guy who grew up watching and reading sci-fi, shame on me for doing that.

    Taking into account the amount of energy that is consumed to make a bitcoin, it will be really interesting to see the inventions of energy production that will come to fruition because of the demand and desire for bitcoin.

    The whole crypto space is fascinating and it will be interesting to see which ones stay standing when the hype stops. In the end who is going to be the Pets.com, AOL, Yahoo, Paypal, Google, or Amazon? Which one is going to be Gold and which one is going to be the Zimbabwean dollar or the ‎Bolívar?

    On a side note - Whats up with all the math? Are they just random questions or do all the math problems add up to solve something else?
  • Lone_StarrLone_Starr Posts: 61 Copper ✭✭
    Buying—and Selling—Property with Bitcoin
    https://www.barrons.com/articles/buyingand-sellingproperty-with-bitcoin-1515081882?mod=hp_penta&;



    Too bad Gold is not in the payment space.
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