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Should I take a payout in Bitcoin? (1 Viewer)

Mental Nomad said:
It's obvious to me that they're not similar in the types of risks they bear. I don't deny that: holding dollars only exposes you only to small, inflationary risk, while holding bitcoin exposes you to wild speculative risk. However, holding bitcoin in a wallet puts you at very small risk of theft or loss due to accident, while holding dollars puts you at much higher risk of both of those. When going down the street, I have no concern about losing my account balances of any kind, but I do have concern if I'm carrying a large amount of cash.

But if we're just talking about taking winnings in the form of Bitcoin, and cashing it out, the risk of "holding" bitcoin as a speculative asset are moot. It's just being used as a way to transfer the money without carrying cash. Does that not make any sense to you?

And one can't, either intentionally or accidentally, pass a counterfeit bitcoin. But I've gotten a counterfeit bill.

Meanwhile in Virginia:
https://www.washingtonpost.com/news...ash-terrifies-players/?utm_term=.0ef77593db73
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No none of that makes any sense to me.
 
Poker Zombie said:
CHP TD said:
the dollar backed up by gold - bitcoin isn't.
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US dollar hasn't been backed by gold since 1933, and as far as I know, there are no governments backing their currency with gold anymore.
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The dollar was still backed by gold after 1933... but that's definitely when the inherent problems of a gold standard first became undeniable. It was causinga deepening of the crisis and prolonging the Great Depression. In 1933, President Franklin nationalized all gold owned by private citizens (it had to be turned in, in exchange for bank notes). In January 1934 the Gold Reserve Act officially changed how it was handled and freed the government to devalue the gold dollar.

In 1944, under Bretton Woods, the gold standard was kept, but dollar were no longer convertible domestically. That's when they stopped being "demand notes," under which you can take a dollar to the bank and demand that they give you the standard gold coin - but they were still convertible internationally. In 1971, the US ended international convertibility to gold, and the dollar was finally allowed to float independently. So the dollar-backing of gold was completely ended in 1971.

We've been off the gold standard for the 45 years since. We weren't the first country to do it, nor the last. The last holdout was the Swiss Franc, which decoupled from gold in 2000. Many countries still hold significant gold reserves, but none have a gold standard (pegging their currency to the value of gold.)

Given all the historical problems of tying currency to a valuable commodity that fluctuates in price, no country is likely to ever go back on the gold standard, although there are individuals who are proponents. In the international economy, any country that pegs its currency to the gold standard puts itself at a tremendous disadvantage on trade, over and above the inherent risks and problems of using a gold standard in the first place.
 
2400-002.jpg
 
Blaster said:
2400-002.jpg
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Is that a stock photo, or do you actually have one? If you have one, cool! It's obviously worth more than $10, as a collector's item.

But don't take it to a bank, because they'd be obligated to confiscate it, replace it with a modern $10 bill, and send it in for destruction. But, to be honest, I'm not sure if tellers today do that, or just quietly tell you to hang onto it.
 
Mental Nomad said:
Is that a stock photo, or do you actually have one? If you have one, cool! It's obviously worth more than $10, as a collector's item.

But don't take it to a bank, because they'd be obligated to confiscate it, replace it with a modern $10 bill, and send it in for destruction. But, to be honest, I'm not sure if tellers today do that, or just quietly tell you to hang onto it.
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Actually, to be accurate, it's the "Federal Reserve", not individual banks, that is required to destroy & not re-issue those, as well as all bills over $100 denomination, , when they are returned to the FR by banks.. Individuals and banks themselves are under no law or requirement to turn them in, & they all remain legal tender ....
All stock photos, however, I do have one each of these tucked away:

2258353481_40cbc68484_z.jpg

40_IMG_3580_lg.jpeg
 
Just thought I would add that many countries are now in the process of selling large portions of their Gold Reserves.
 
Milo013 said:
Just thought I would add that many countries are now in the process of selling large portions of their Gold Reserves.
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And others are buying (like Russia.)

It seems that, on average, central banks are net buyers of gold...

upload_2017-1-10_18-53-20.png

(From http://www.forbes.com/sites/greatsp...-with-the-largest-gold-reserves/#264a64ae466b )

According to the World Gold Council's last report, covering through Q3 of 2016, they're still net buyers, though not buying as much as before:

upload_2017-1-10_19-1-26.png


Note: first chart is in tonnes, second chart is in US Dollars.
 

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Mental Nomad said:
Is that a stock photo, or do you actually have one? If you have one, cool! It's obviously worth more than $10, as a collector's item.

But don't take it to a bank, because they'd be obligated to confiscate it, replace it with a modern $10 bill, and send it in for destruction. But, to be honest, I'm not sure if tellers today do that, or just quietly tell you to hang onto it.
Click to expand...

What's a "teller"?
 
Blaster said:
Actually, to be accurate, it's the "Federal Reserve", not individual banks, that is required to destroy & not re-issue those, as well as all bills over $100 denomination, , when they are returned to the FR by banks.. Individuals and banks themselves are under no law or requirement to turn them in, & they all remain legal tender ....
All stock photos, however, I do have one each of these tucked away:

2258353481_40cbc68484_z.jpg

40_IMG_3580_lg.jpeg
Click to expand...

Those could get stolen. Best if you converted them into Bitcoin.:coffee:
 
I just have to bump this...
Appears like @trever was 'advised' to take cash, over BTC.... ? He said it was a 'large win' so lets assume around $1000... if he took that in bitcoin less than a year later that would be $11,201.

Quite the ROI ;)
 

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