← How does Bitcoin Cash wallet work? Many new Bitcoin Cash users are not sure, or do not… by @Telesfor
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← How does Bitcoin Cash wallet work? Many new Bitcoin Cash users are not sure, or do not… by @Telesfor
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If any country can determine the value of its currency then it is possible that the Philippine Government can adjust the value of Peso to P1=$1 as they want to? Sir
Yes, they can, but they won't, because everyone would immediately exchange PHP for USD and buy goods from abroad. All Filipino goods would suddenly be very expensive and nobody would buy them. All Filipino companies would go bankrupt immediately. But they can do it differently. They can issue a new peso and peg the new peso to dollars. A new peso would then e.g. 48.5 PHP cost. You would have to exchange old pesos for new pesos in the bank. Then the new peso would be worth 1 USD. All goods would then cost less new peso, but of course people would then earn much less new peso. Many countries have already done this or similar. Most of the time they only cross out a few zeros in the new currency, so e.g. 1 new peso = 100 old peso This process is called denomination.
Wow you are really an expert I think. How about Currency manipulation in which China was accused by USA.?
USA accuses China of doing it the other way around. You have to imagine it that way. The government of the Philippines sets the exchange rate at 1: 100. If a Filipino company sells PHP 500 worth of goods in the US today, the goods costs $ 10 today. If the government sets the exchange rate to 1: 100, the goods will only cost $ 5. The competing same US product still costs $ 10. Which goods is the customer buying?
Oh I see. Economics is really hard you know. Hahaha. So money is like a commodity or goods too. Buying the Dollar using the Peso.
Yes, money is also a commodity because you can buy and sell it. But it is a commodity with no intrinsic value.
What do you mean by intrinsic? It is like Gold,Silver has intrinsic value but money don't have.?
Here is the definition. But it is getting very financial. https://en.m.wikipedia.org/wiki/Intrinsic_value_(finance) Very, very simply one can say that currency like PHP has no intrinsic value because the government can declare it worthless by law. For example, if you have a car, the car always has intrinsic value. It can be taken away from you, but then that doesn't change the value of the car. The invalidate money is immediately worthless. This has happened many times in history.
Very interesting. Philippine Congress can change the currency from Peso into Dollar or Yen and declare peso as worthless. Hmmm. But car has depreciation value too depending on the years it was used. Hahaha. Were now discussing Finances and Accounting.
Yes it is. That is why many people buy houses, gold and other things like Cryptocurrencies, because they are afraid that the money will one day be worth nothing.
Why the value of Bitcoin Cash or other cryptocurrency changes. What factors affects its value?
Right now the price is being driven by speculation. This is the case with all cryptocurrencies. When Bitcoin Cash hits mass adoption, its value will be determined by usage. It is people who will give value to Bitcoin Cash, not governments. In my opinion, Bitcoin Cash is the only cryptocurrency that can and will function as a universal currency worldwide.
But Sir what if the government will try to regulate cryptocurrency? What if they penalize those business who accept cryptocurrency as mode of payment.?
That is not out impossibl.USA government has already banned gold ownership once. It didn't help. The government can prohibit a lot, but it cannot invalidate Bitcoin Cash because Bitcoin Cash is not issued by the government. Government can ban coins.ph, but not local.bitcoin.com
Still there's a risk in owning cryptocurrency if the government decided to use its power to regulate cryptocurrency.
As long as you own your seed, the government cannot expropriate you. They can't take your BCH away. The government can ban exchanges, but not local.bitcoin.com. The government can only make it difficult for you. Coins.ph can go broke ,your bitcoin.com wallet can't.
In that case Sir My cryptocurrency will be useless?
Did gold become useless (worthless) when the US government banned it? You will always be able to use Bitcoin Cash. The government has no technical means to make it impossible for you. The government must turn off the internet. The government can make your PHP worthless. It can forbid coins.ph. But it can't make your Bitcoin Cash worthless, it can't take your seed away from you. They can not ban your wallet. There are many open source wallets. You can always use your BCH when you have internet. That is the real strength of Bitcoin Cash. The current price fluctuations are irrelevant. When mass adoption begins, there is no going back. Lots of people are working on it. https://flipstarter.bitcoincash.site/
Now I learned a lot from you. When I transfer my BCH from here to my coins.ph I will always convert it to peso immediately. I never see the potential of cryptocurrency. I never thought of investing it or wait for the time comes that the price will increase. I learned a lot from you today Sir.
>Wow you are really an expert I think. I read a lot and that's why I believe in Bitcoin Cash.
Thanks for this sir, I have know little knowledge about Bitcoin cash. This is very informative to me. 😊
Thanks I really learned some lessons day by day just by reading and understanding your articles about Bitcoin Cash and the whole blockchain.
> Thanks I really learned some lessons day by day just by reading and understanding your articles about Bitcoin Cash and the whole blockchain. I am pleased
This was a really informative article! Thanks for sending it my way over on Noise. Learned a lot from this post alone. Gonna read your post about the derivation paths next
I'm glad you enjoyed it and thank you for the generous tip.
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