Why Cryptocurrency Is Better Than Physical Money
Why Cryptocurrency Is Better Than Physical Money
The only reason a $1 US bill holds that value is because as a collective we have all decided and agreed that its worth that much. It’s pretty much the same with cryptocurrency except it is digital and can fluctuate because we have the say instead of the government. We give the currency our trust that it is the amount that we say it is. Which is one of the main reasons, cryptocurrency is so volatile (moves up & down). With an actual physical $1 US bill, we have claimed that it will always be $1 even if the bill is crashing or raising in the digital world. So, say you go online and see that $1 in the financial market is worth $1.50 and you go to a store and buy something for $1.50 and you hand them $1, the cashier would most likely say, “Hey, you don’t have enough, you’re .50 cent short.” But wait..the financial market online says that my dollar is worth $1.50 but our world doesn’t work like that. Most people would think you are crazy if you said your dollar is worth $1.50. That’s one main difference between cryptocurrency and regular money. When you are invested in cryptocurrency, when the price goes up, it also goes up for everyone else to understand that you have that amount of money.
For example: Bitcoin was $110 in July of 2013 and the retail price of the Apple iPhone 5s was $199 - Obviously with that 1 Bitcoin that you had, you could not buy the Apple iPhone 5s, you didn’t have enough money. But, 3 months later, Bitcoin went up to $200 in October of 2013 and with that same amount of Bitcoin you had in July (Hopefully you held on to it) You could now purchase the Apple iPhone 5s.
Now with US money, it would be completely opposite, because you have a physical bill that we have associated with being a set price even if in the digital market it is going up. Say you have a $100 bill and you want to buy the iPhone 5s, again you can’t because it is $199 but, say the dollar goes up on the internet and now your $100 is worth $200, well you still wouldn’t be able to bring that $100 bill to the store and buy the Apple iPhone 5s. It just doesn’t work like that. Main reason Cryptocurrency is going to be the future, because we have a huge say in what our money is worth.
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Hello Ms. Adkins, I'll see your view of crypto with some skeptical critical thinking:)
But first I'm still annoyed that you stopped posting your weekly chapters! Completely forgivable though:)
Okay, I'll start with the similarities between fiat and crypto:
-fiat was more or less brought into modern existence by a now not so shadow elite who are surrounded by at least 3500 years of controversy. I can think of no other group who can claim this dubious distinction and thank-you Mr. internet for blowing the doors wide open in a great revealing! Crypto has been brought into existence by a shadow elite.
-fiat brought in alongside itself the largest tax infrastructure in the history of humanity. Crypto is also being taxed and in the most dubious way: by making yearly holdings taxable! This comment won't get into how ridiculous this method of taxation is on crypto--the point is crypto in itself has done nothing to alleviate the ridiculous tax burden on the average person. Only the fiat and crypto elites can escape the tax burdens by hiding their money in off-shore havens. Hardly any difference as far as I can see.
-fiat has ushered in the most unsustainable inflation system in human history. There is nothing I'm seeing in crypto that addresses this problem.
-fiat has ushered in an environmental nightmare for the planet as the economics of fiat are unsustainable when there are finite resources. Crypto does nothing that I can see that addresses this problem of sustainability; in fact, bitcoin is enormously power consumptive from the knowledge I have.
-fiat gave a very small percentage of the population unfair advantage over the majority by issuing fiat via nepotism; the model also incorporates lowly evolved economic Darwinism treating humanity as nothing more than animals. Crypto seems oddly similar in that the main proponents seem to be a circle jerk of in-group shilling (a thrilling as circle-jerks may be to some), it's hardly a rational way of delineating the pros and cons of any economic system.
I could go on but a comment shouldn't get too unwieldy:)
BEST:)
Great article, so happy to connect with other earthlings too :)
true cryptocurrency maybe vital but price is more honest