You Want to Understand Bitcoin Better? Stop Believing Money is Real
Dec 08, 2017 Posted / 15715 Views
Bitcoin is still facing massive levels of criticism from around the world from individuals and governments with some countries banning its activities altogether while others restricting its operations. All this is coming up because some people (governments) have failed to understand Bitcoin, they only see it from the negative perspective. Bitcoin was built to ease payments and change the way the world does business. The core objectives are instant worldwide outreach, decentralization and low processing fees. The introduction of Bitcoin came with many groundbreaking applications to improve our day to today financial dealings.
To those saying Bitcoin is not real because it is not backed up with any gold reserve or any valuable mineral for that matter needs to pay more attention to the major currency of the world, the US dollar. Surely it is true bitcoin does not have the backing of any valuable metal or oil or any natural resources as such, but should a commodity be backed by any of such thing to be called money?
For those who term Bitcoin as an illusion should know that even the US dollar is an illusion itself sitting somewhere in the cyberspace just like Bitcoin. Those Papers and coins are just materials used for storing the US dollar but they are not the dollar it’s set. It is possible to transfer a given portion of the currency without necessarily involving the papers and the coins. Just like bitcoin, the dollar gains its value from the people who accept it as a payment and the other people who in turn accept it from those who had accepted it earlier. The only main difference between Bitcoin and the US dollar is time, the US dollar now 232 years old Bitcoin is just 8 years old. Pretty much difference right? Imagine a toddler like bitcoin being worth over 11000 times the value of world's strongest currency the US dollars. So what do you think bitcoin will become if it fully grows like the US dollar?
The world’s national currencies have degraded causing unimaginable sufferings to millions of people just because of the poor decisions made by the world's’ leaders to create as much more money as they like and dump them in the economy. Consider the fact that inflation is real and eating up the values attached to the fiat currencies in every country. The value of $1 in 1959 is now turned down to as little as 12 cents in 2017! Indicating that the dollar has lost 88% of its value just in 58 years.
So from the brief analysis, we did above you can see that the US dollar or any other fiat currency might not be the best way to keep your long-term wealth. Just know if you store $100,000 now in 60 years that money will be valued just over $12000.
All this has bereaved our national currencies because they have unlimited supply yet the world production capacity has limited meaning at any time there is more money than what the money can buy.
Luckily for Bitcoin, there is a limit of 21,000,000 Bitcoins that can ever be supplied to the world, that limit will be reached sometimes in the year 2140, pretty far right? So consider a situation of dwindling supply amidst a surging demand as bitcoin is function millions of application worldwide. The price of Bitcoin will increase continue increasing until the year 2140 when all supply would exhaust. Then the currency will have a steady price, however steady for this case will not mean low. It’s expected bitcoin could be worth $2 million or even $5 million in that time. So bitcoin will be the most expensive precious metal backed up by no real precious metal just because it was coded by a genius who could foresee the future.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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