I was reading a zerohedge article:
BIS Chief Bashes Cryptos, Demands Young People "Stop Trying To Create Your Own Money"
and thought the article is a good example of why crypto is what it is today and why it is here to stay.
When I first heard about bitcoin and crytocurrency I too thought it was a ponzi scheme. The thought of buying something that was created out of thin air and then reselling it based on its high demand. Sooner or later the demand will wane and the price of crypto will fall to nothing. Yet as I learned more and more about crypto I come to realize that cryptocurrency is far superior to what we currently have in fiat currency. The major proponents to crypto are those who have been use to using fiat. What they fail to realize is mankind is filled with progress and innovation. The natural cause and effect to why crypto is what it is today and what it will become in my opinion is settled. We are witnessing a revolution that I hope will make the world a better place for all.
Blockchain
The core of bitcoin being so popular is its inherit mechanism of being able to confirm and verify a transaction. As the very first cryptocurrency to use blockchain technology it is one coin that has made significant progress in performing very well the basic tasks of currency such as its' transfer and storage.
The reason bitcoin is created is to simplify the way people can exchange goods and services without the use of a third party medium. The medium such as the bank. So what better way to getting rid of the banks than to have a form of contract that will keep track of every bitcoin transaction ever made in its life time.? One of the benefits of operating on a blockchain is that every transaction is verified, and when confirmed stored forever. Anyone who have access to a computer can then read through the history of the bitcoin blockchain to see any transaction that have been ever made.
Integrity and Honesty in 21st Century is Gone
There is nothing like this before. When banks have accountants to keep track of the investments it came down to integrity and honesty of the people who track the investments. As a generation that felt the dot com and financial crisis I have grown to displeased with the current financial system. I believe many others not only in my generation feel the same way.
When the governments we have in place create their own fiat currency we had hope for things such as are transparent and the countries wealth shared fairly among its citizens. Yet when the people we either elected or are by default in power the onslaught of human greed is exposed. Everything that is suppose to be fare is distorted and excuses are made as to why there is always a deficit.
Bitcoin is thriving because many of us in this world have grown sick and tired of the current system failing us. The share of wealth or earning potential is depleting at a rapid pace with the use of fiat and it only grows each day.
How on earth can we expect kids out of college support a fiat system if they start in the hole with mounting debts? To think I have to start a race further back from the starting line in today's economy versus just 10 years ago is the best analogy I can give. Plan and simple this is unacceptable. Cryptocurrency weeds out the ones who have country of fiat currency and is a great substitution for it is transparently clear as to how the currency is created and when it gets used.
Money out of Thin Air
Like anything in life nothing is free. Same goes with crypto. The required energy to mine bitcoin or effort used to earn any crypto is the "work" necessary to create currency. There is no waste to this. Every transaction in bitcoin requires more mining and resources to further the use of the crypto. This process is much better than the current fiat system.
In the examples of present governments we have the world's central banks formed by respective government officials who decide for us how much money we are able to spend and receive. Again the human factor will inherent make the system fail as greed and manipulation exists. Bottom line is the government literally make money out of thin air when they believe the economy is slowing down and take away money when the economy they feel is speeding up. Straight out manipulation if you ask me? Why have someone always control my allowance or financial freedom?
Fiat Currency is Debt
Every paper bill that is currently being created is a form of debt. The bill itself is a note that stands for written contract that in the future must be paid back in full with interest. So as the governments print more bills, to sustain an economy they say, means the more debt its people have to handle. Younger generations like mine and the ones after us would be silly to think that this debt created by our government would shrink as time moves forward.
Instead the current US debt has exceeded $21 trillion dollars. That is over $21,000,000,000,000 and rapidly climbing. This is how much US owes. What about the rest of the globe? In the end this form of financial system can not be sustained. At some point the number we owe will not be able to be paid back. This is where cryptocurrency is formed.
To have a fresh start and avoid the catastrophe of borrowing our older generations have taken on is a reason the younger generation is leaning towards cryptocurrency. Why do we have to pay back all the sins our past generations decidedly accept? By following the fiat system we are held in chain by others.
Currency Revolution
Technological advancements has made things easier for mankind. Looking back not even 30 years ago was the internet this popular. Nowadays young kids know what is an ipad and how to use it. Insane.
In a similar way the advancement of currency has paved ways for crypto. None better example than the use of credit. Not long ago credit cards and credit were tools many people did not know about but today is used as standard practice when making a purchase. The actual fiat currency we based these credits on have been replaced with physical cards.
As time has passed we come to adopt the use of credit and debit cards and less on bills. So as time moves forward people will have to get use to crypto as it provides faster and more secure ways of preforming transactions. The benefits outweights the drawbacks in crypto today as it was credit in the past.
There is no stopping this from happening where the use of crypto through a card or smart phone will be another phase of the technological evolution we live in. Many younger people are attracted with new ideas and better ways of doing things and altcoins besides bitcoin is proving that there are better ways. I will leave the readers to find what altcoins out there that does all these things I say.
In conclusion, banks are trying to discredit crypto because they are aware of what is taking place. That is there is another form of currency that is out of their control that is creating wealth for others but not themselves. Those who have control of their finance will likely have control of their lives. Bottom line is cryptocurrency is here to stay because some of us want to control our own lives.
Thanks for reading.
Date of Post: 7/06/2018