Introduction
Bitcoin and the digital Ledger are changing the world.
- The invention of Bitcoin meant we could quickly transfer money across the world without trust.
- This simple fact is changing the world.
- It is a simple solution to a complex problem.
- And the beauty of this simple statement is that you can remove Bitcoin and insert HIve.
Body
First, I want to explain why digital ledger technology is changing the world. Please focus on three things:
First, Money is physical.
- So it can't travel in the virtual or non-physical world of the internet.
- Because of this fact, any physical money transfer system, which uses the internet relies on trust.
Second, cryptocurrencies like Bitcoin are not physical, they are virtual.
- So Bitcoin and Hive, being cryptocurrencies, can actually travel on the internet.
Third, because cryptocurrencies like Bitcoin travel on the internet, they achieve immediate settlement, so they don't need TRUST.
- Bitcoin, HIve and other cryptocurrencies are not physical currencies, they are virtual.
- Because they are a virtual money, they can travel over the internet settle debts immediately. So you don't need TRUST.
Brief Comparison: Compare the Digital Ledger Money Transfer System versus the Traditional Finance Money Transfer System.
First Concept
- We must understand that the Traditional Finance Money Transfer System can't actually transfer money over the internet.
- The system can't do it because money is a physical thing, and you can't send physical things over the internet.
- So in reality the current Traditional Money Transfer System sends a message, which is a promise to pay.
- The objective proof of this statement is the Settlement Period.
Settlement Period.
- The Traditional Money Transfer system has a settlement period, which is the period of time two parties wait for the Actual Money Transfer to Occur, after the Original Money Transfer message or Promise to Pay.
- This takes from 2 days to 30 days.
- Two to thirty Days for the actual Money Transfer to happen, after the Original Money Transfer message happened.
Delayed Settlement
- This is actually called delayed settlement because it takes time: 2 to 30 days, for the actual TRANSFER of money, to catch up with the Promise to Transfer Money.
Second Concept
- When we send cryptocurrency tokens like Bitcoin or Hive, over a Digital Ledger like we are not sending a PROMISE to pay MONEY, we are sending MONEY.
- We know this is true, because when you get the message that someone sent you cryptocurrency, you also get the cryptocurrency.
- This is called Immediate Settlement
- The objective proof that Bitcoin or Hive are sent on a Real Money Transfer System, is that they have Immediate Settlement.
- This is because with Digital Ledger Technology, the message is the money, and the money is the message.
Let me make this crystal clear.
- If I want to pay you ten Hive for a nice cold Coca Cola, I can send you ten using a QR code and you hand me the soda.
- The transfer of money is not delayed, it is immediate.
- So the settlement of my debt to you is immediate, and this is a True Money Transfer. System
Concept Number Three
- The Traditional Financial System is dependent of TRUST because the Money Transfer System doesn't transfer physical money, that is impossible. So it sends promises and receives promises.
- So the two parties conducting business must know and trust each other that promises today will be followed by money in 2-30 days.
- If they don't know and trust each other, somebody else has to be the middleman, someone they both TRUST, who guarantees that promises made today, will be followed by money in 2-30 days.
- These TRUST conditions are required for a country to have access to Global Money Transfer Systems, like SWIFT for U.S. Dollars and EUROTRANSFER for EUROS.
- This allows MONEY to flow freely between these TRUSTED entities.
- This flow of money allows the countries in this system to flourish economically, and for their people to prosper.
- But those countries who can't join these systems can't prosper, and their people live in poverty.
Bitcoin Fixed This !!
- Digital Ledger Money Transfer Systems send MONEY, not PROMISES to PAY MONEY LATER.
- Digital Ledger Systems don't require TRUST between Two Parties.
- Digital Ledger Systems don't require a TRUSTED Middleman.
- Digital Ledger Systems are open to all countries.
- So money can flow freely, countries can prosper, and poverty can be overcome.
Last Words
- Pause to contemplate this simple truth about the Traditional Money Transfer System and the simplicity of the solution The Digital Ledger Money Transfer System.
- The Traditional Money Transfer System depends on TRUST, so if there is no TRUST, there is No Money, and No Money equals No Prosperity, and no prosperity equals Poverty.
- The Digital Ledger Transfer System doesn't depend on TRUST, so there can be MONEY flows and there can be PROSPERITY.
- Bitcoin, the world's best known Virtual Money, fixes this, problem and makes the prosperity of countries excluded from traditional money transfer systems.
- Hive, a less known virtual money, fixes this problem.
- The problem is that complicated, and the solution is that simple.
The End.
#Thank #You #For #Reading #My #Post
This post was written by @shortsegments
