This modern bitcoin and NFT stuff. Anyone understand it?

Jester

Well travelled
Location
Northants, UK
So, it may be down to my advancing years but on the news recently a bitcoin exchange has collapsed owing billions. I have read up on virtual dosh and have a bit of an idea on how it works, but I thought that the idea was there are multiple copies of the ledger so that things like this can't happen. I buy bitcoin, it gets validated and bingo there are duplicated records that show I own it. So how could an exchange going under 'lose' this money?

NFTs also make my mind boggle. You get a receipt to show you own something, but in many cases neither own what the receipt is for or have control over the copyright.

I believe that I am missing something important in both these cases, but it seems a bit 'emporers new clothes' to me, any people more cleverer than wot I is-or younger-understand these? Simple explanations only for the befuddled masses!
 

Andy131

Well travelled
Location
Manchester UK
From what I understand, there is a limited amount of a specific bitcoin, so unlike conventional currency when the authorities need more they are stuffed - currently if the govt. wants more money it just prints it. Problem being the currency (in your pocket) then is worth less as there is more of it about.

Now any currency (bitcoin, dollars, euro, pounds) is only worth what the markets think what it's worth - ie if the market thinks that the controller of that currency is going to dump a load of it or print more of it then the market will get rid before the proverbial hits the fan. At that point the currency concerned drops in value as nobody wants it.
My son has "invested"£3,000 in bitcoin at the beginning of the year - probably worth £30 now Ah well there's always the bank of Mum & Dad
 

Roy Gavin

Well travelled
In every scheme there has to be losers in order for there to be winners, so it is always a gamble.
And good advice on gambling is to only have a serious bet when you know more than the people who are setting the odds.
And with crypto few will even know who they are.
 

Cpt.Sparkles

Well travelled
Location
Martian
Bitcoin is an interesting idea but still fiat.
NFTs are hype that mostly attract new-money & kids.
FTX was a joke & a warning against unregulated markets.
 
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