World Currency, Bitcoin and Cryptocurrency

The world economies run on many different currencies. And these currencies are pegged with certain values to each other to promote trade between goods and services.

For each respective country, one monetary unit is essentially the same as the next. So, one U.S. dollar has the same value as any other U.S. dollar. Same for pounds and yen, etc. Essentially, these units are uniform, thus enabling trade for goods and services. This is an example of being fungible.

Another commonality between monetary units is that they are divisible, at least to a point. A U.S. twenty dollar is the same as twenty U.S. dollars.

So, for the most part, world currencies are uniform and divisible making them easily exchanged for goods and services throughout the world. And this system has worked for many years.

Now let's look at cryptocurrencies. Fungible coins and tokens have the same uniformity as conventional money throughout the world. One Bitcoin can be exchanged for another, with the same valuation, the same valuation because we know that the price of Bitcoin rises and falls. But, based on their very nature, Bitcoin and cryptocurrencies are more divisible, many have 8 decimal places and some have 16 decimal places.

At this time, Bitcoin is the denominator from which all other cryptocurrencies derive there value. And just like world currencies, Bitcoin and cryptocurrencies have values pegged between each other, as well as world currencies, that fluctuate based on a number of factors.

So, just like world currencies, Bitcoin and cryptocurrencies are fungible and divisible and easily exchanged for goods and services throughout the world. Even though the adoption for some cryptos is currently nonexistent, there is potential with a solid use case.

But there is a big difference between world currencies, Bitcoin and cryptocurrencies, and that is debt. World currencies are debt based instruments based in part on the good faith of the countries supporting a particular currency.

The concern of many is that is that these currencies are debt based and subject to varied monetary policy and banking systems throughout the world. And let's face it, not everyone is playing fair.

Are Bitcoin and cryptocurrencies an alternative to world based currencies? I would say the jury is still out on that one, but there is clearly a place for alternate currencies. Given the current crypto bear market, the push for Bitcoin and cryptocurrencies has waned somewhat. But if values go up, we can expect renewed interest adoption for alternate currencies.

The intention of this article is not a study in economics, nor to draw a conclusion to which is better, debt based or other based. There are so many cryptocurrency models, I would hesitate to say asset based.

The purpose of this article was to point out the similarities between fiat and cryptocurrencies. And, to say that while fiat has builtin adoption, Bitcoin and cryptocurrencies must earn their place. And this is where the best use case may win out.

So, what are your thoughts? Assuming you agree with Bitcoin and cryptocurrencies, what are you doing to promote adoption?

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No dollars were harmed in the making of this article. The picture of the dollar was taken with my iPhone and then the picture was modified, not the dollar.

Pre-Post-SEO was the plagiarism checker used to determine original and unique content. Here is a copy of the report showing 100% Unique Content and 0% Plagiarism

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