Whenever I raise cryptocurrancy with people the first thing that often comes to their mind is Bitcoin and it's millionairs it has made. The second is their disbelief and they often call it a scam or pyramid scheme.
I find this view a little odd as pyramid schmese of ponzi schemes tend to flow cash up to the apex of the scheme. It's tip, which is why it's called a pyramid scheme.
Whenever people go to this space I reach for my phone and open up @leofiance and Hive. This often changes their mind a little with the focus of a blog and they can see a product that is paying for something. But what is a blog if it is not just typing characters into something and posting? It's because people need to see something on the other end other wise they perceive it to be fake.
Where's the value in chocolate?
But if we can liken cryptocurrancy or blockchain technology to something let's have a look at chocolate or cocoa beans. Imagine a world where you could buy a steak with chocolate. Don't like stake maybe a kale salad? Or what about a house and land?
A holiday perhaps? Wanting to head down to that perfect holiday destination on the river bank, relax while you catch fish? Maybe you don't want to fish and you just prefer to buy fish off someone else and you make that payment in yup, you guessed it chocolate.
Sounds absolutely ridiculous the thought of rocking up to a land sales office and handing over chocolate. Your mind automatically goes to large amounts of chocolates, millions of dollars of chocolate. Well you didn't need truck loads of chocolate to do this, just a little bit.
See the Aztecs and Myans often traded cocoa seeds which is what chocolate is made of. The Aztecs expanded their Empire and relied on Myans to provide them with cocoa which made up the main form of currency in 1900 B.C. in return the Myans bought designer clothing, exotic foods and even items that were considered a store of value.
People were paid in cocoa to build structures and cocoa was traded to build homes. The more cocoa you had the wealthier you were. This economy lasted for centuries and everyone lived a happy prosperous life.
I don't need to tell you how advanced Aztecs and Myans were we hear it all the time. An advanced civilisation for its time all built on the foundations of chocolate!
So tell me, how crazy is it that an electronic currency emerges in a technological time period? It isn't. We're all glued to our phones, we're all constantly connected to each other through technology it is no secret that a technical solution would arise to allow us to trade with each other across the globe in a high speed one format currency.
The Aztecs and Myans never had a central bank or exchange that would take take cocoa beans and turn them into something else. No the cocoa beans WAS the currency and store of wealth. All fiat is is a paper fraction of an asset that you never see or touch.
You enter into an agreement of trust that the paper you hold, holds the value when you give it to someone else for their service.
Unfortunately due to other people's stuff ups inflation and deflation occurs as people make dumb decisions that crash markets impacting you, who has worked your butt off for the piece of paper in your hand.
The only thing impacting cocoa was the rain and the ability to farm it. The more scarce it was the more it was worth. As more people were born, more needed to be made so bigger farms. A natural form of inflation attempting to maintain the value of cocoa.
A bit like yield farming and Hive and Leo inflation. The more people that join the block chain it inflates to capture that.
So I ask you, if chocolate that has no value can become a currency, why not cryptocurrancy currency?
In a world of technology, we needed a technological solution to the ability to trade and earn with each other!
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