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  4. Does Anyone Know How The New Cryptocurrency Will Affect Normal Savers?

Does Anyone Know How The New Cryptocurrency Will Affect Normal Savers?

paoli2
  |     |   2,641 posts since 2011

Tonight there was a message rolling at bottom of my tv about "4 biggest banks" so I googled "4 biggest bank problems" and it gave me articles about how banks worldwide including in the US were now seriously considering using something called "Cryptocurrency" like bitcoins and digital wallets to keep track of all the money laundering going on. It seems paper money is harder to track so they have to come up with a way to know exactly how much money everyone has and where it is.

It seems like it will be the end of the paper dollar as we know it since it is harder to track. Does anyone here know more about this and can explain how this will affect the worth of the dollars we now have saved? The article was not written by anyone selling gold etc. It was more informational as to why the currency of the World has to be changed and easier to track. So what are savers like ourselves supposed to do if anything? How will this affect the worth of the dollars we have now? The article did not give any explanation I could understand. I would appreciate it so much if anyone on here could help me understand more about this. Thanks so much for any information you can provide. This is not a subject I like to go to sleep thinking about especially if I don't really understand it. Much appreciation for any advice or info.  I just remembered you insist I post where I read this:   https://news.bitcoin.com/4-south-koreas-largest-banks-provide-cryptocurrency-services/   Whew!  It came up!

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Answers
111
  |     |   672 posts since 2019
Well, it may work out, but maybe not. Bitcoin was nearly this high in 2018. What happened afterwards?

One thing to keep in mind - however much those in the BitCoin world (including banks if they jump into that world) hawk BitCoin and friends as currencies, the IRS treats them as investments. (Also note that as a side but related issue, it is a pain to contact the IRS regarding any specific information under normal circumstances, and far more of a pain these days because of COVID.)

Finally these days ownership of a cryptocurrency is perhaps the quickest way to an IRS audit -
https://www.forbes.com/sites/irswatch/2020/05/29/got-cryptocurrency--get-ready-for-an-irs-audit/?sh=75ce64ae1231
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5
Choice
  |     |   937 posts since 2020
The answer for money laundering, gang thefts, all traceability issues, etc is converting on a periodic basis one form of currency for another, eg blue backs for green backs. Conversion could help balance budgets since conversion is coupled with amended tax returns, ie accountability on source of those old green backs.  
 However, the police, prison community, etc will be decreased. Remember also several countries use US currency for  its currency. Going to digital currency everyone will know your so-called cash holdings. Assets will become king unless we revert to shell trading, silver, gold, etc
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4
GreenDream
  |     |   358 posts since 2019
1) Even though the site you linked isn't selling gold, etc, just from the URL it's obvious that it has a publishing bias regarding cryptocurrency. So probably not the best source to be going to on the subject if you aren't capable of filtering out the bias on your own.

2) the linked article doesn't mention many of the things you are talking about (ie no mention of replacing paper dollars for digital currency and no mention of money laundering). It's only discussing banks and other FIs being authorized to offer cryptocurrency services in addition to all their other services (no mention of being in place of other services) and the eagerness that some banks have been showing in doing so. Which shouldn't be much of a surprise. Banks see the potential for making money off of the cryptocurrency craze. If I were in charge of a bank, I too would be looking at ways my bank could cash in on cryptocurrency (regardless of what I might think about cryptocurrency as a currency)
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