Understand the value of money (currently used, money of the issuing entity)
Money is partly guaranteed and administered by the government (no fake notes).
While 10,000 won does not necessarily equal to 5 kg of rice or 0.2 g of gold, if the value of the rice or gold rises faster than the current value of 10,000 won, or if the value of the rice or gold rises sharply, then the selling price of the rice or gold will be reduced.
But it allows prices to go up steadily (normal inflation) because of the small supply, and it also allows prices to go down sharply.(Ex. lower property prices) All government taxes are to be paid in cash and ensure that the money can be spent.
Money, after all, is essentially a piece of paper, and unless it is guaranteed by the government, is just waste paper, unless there is a government in existence.
Understand the negative aspects of the value of money
You may have understood the benefits of the value concept of the current currency. Now if you look at it from a different angle, the currency's issuing agent, the government, should keep its currency in place to fit the size of the economy in use.
However, depending on the direction that the government's economic policies are pursuing, the amount of money is also skyrocketing.
It may not be felt in between one and two years, but the reason why prices have gone up so much (10 to 1000 times) from 20 to 40 years ago is due to the increased amount of pollution. The value of money could drop a thousand times in just 40 years.
This is an example of the U.S. dollar and every other country is open to the dollar.
Explain some of the characteristics of a bit coin
- The issuing chain of money can be ruled out, and anyone with a computer and Internet network can issue money.
- Total issue quantity has been set in advance from the beginning. (Bit coin : 21 million)
- It prevents forgery and prevents hacking.
- Easy to exchange and get. (In any world, provided that the Internet is available.)
- You can split a bit coin into 8 decimal places and the details of the transaction you exchanged can be recorded and checked forever. (In other words, the payment recipient can not claim that he or she has not received it. The payment details can not be cancelled and therefore can not be falsely claimed or cheated.)
- Modulation of a record of this transaction is the same as counterfeiting, theory impossible, and hacking is not possible.
- Bitchine can be issued by anyone, but it takes a long time to process as the issue increases. (It is said that the electricity bill required to issue a coin may take longer than the current price.)
Explain the process of obtaining the value of a bit coin
The value of the bit coin is equal to the value of waste if no one acknowledges it.
However, when someone acknowledges, the deal is complete and you earn its value.
Earlier, he bought a pizza in the United States with 20,000 bit coins.
And that started to make it easy for many people (although very few people on the part of the users) to get accepted as a dollar, and then it started to roll up until a few years ago.(Q1 2011 : $ 1 ; Q2 2012 : $ 10 ; Q1 2013 : $ 100)
And the people who appreciate the bit coins spread throughout the world, not only in the United States, but also in Europe, China, Southeast Asia, India, and Russia.
A few explanations about maintaining the future value of a bit coin
- Recognition of value - Existing money is guaranteed by the government and the majority of the public. Beatcoiner is accepted by many as money. Existing currencies may lose their value by bankruptcy of government or currency reform, but Bitcone stays with the public if there is a large public recognition of its value.
- Features of Bitcone – Non-counted, Non-Cancellation of Transaction Records, and Limited issues
A bit coin created by computer programming is neither shaped, weighted, or shaped. It was recognized as impossible to fabricate in the program, but it's a theory everywhere. When certain rumors say that a forgery is possible, or when a rumor is made that a defect has been found in a program, the price of a bit coin collapses.
(If the rumor is true, the bit coin changes into trash.) But the rumors are bound to drive us up and down. Because there is no one else managing value, and the people who acknowledge the value sell it out immediately in a sensitive manner.
Despite its large range of value fluctuations and frequent occurrence, its monetary performance is excellent for the real economy.
When you explain what's better than cash, the non-forgottable feature enables the trading party to make transactions safer than the fake cash.
Indeterminability to cancel the transaction is also safer to use than cash, as it saves fraud.(In case of cash transaction, if the amount is large, the person in charge insists that he did not receive it, the receipt is kept and the receipt is notarized when necessary. However, the transaction details are checked and paid to whom it is kept forever. This transaction detail can not be canceled. In other words, the parties to the transaction are guaranteed to do so much better than cash. ).In addition, although large quantities of cash need to be kept in a safe deposit box, Bit-coins can be kept without weight or volume. You don't have to be robbed by a robber.(It will take one billion years to decrypt the files even if one steals another's BitTone file (wallet).)
It is also suitable for small physical transaction as it can be traded in small increments of up to 8 decimal places in 1 coin.
And although the output is limited, the fluctuations in value are substantial and substantial in the short run, the depreciation of the currency over the long term is a great advantage over the present value.
What if the government's role (Bitcone Control) – loses its authority to issue currency?
If you lose the power to print money, you're going to lose the ability to develop economic policies. That's probably because the Russian and Chinese governments that regulate Bitcone aren't happy with that. Other countries that have not yet controlled it may not like it either.
When all countries ban the use of Bitcons by law, they will probably turn into garbage.
Economic policy is possible without monetary policy (issue of currency, etc.), however, I do not think Bitcone can become the only currency in the world.
On the contrary, it would be difficult for all countries to ban bit coins. Too many economic populations appreciate the value of the bit coins and are already deeply involved. Because some would describe beatcoiner as the industry platform that will create new foods.
Next, let's explore the concepts of mining. Thank you for reading it.