RE: Bitcoin: Understanding its Security and the Underlying System.
Fiat currency is not backed by any commodity like gold and Bitcoin also doesn't have gold backing it but If we take an example of our currency, the government can print more money any-time so our money will lose value but Bitcoin has a limited supply of total 21 Million.
The deflationary model of Bitcoin definitely helps to make it a great store of value. Every year new crypto enthusiasts start investing a bit of their money in Bitcoin and other cryptocurrencies.
Every 4 years the creation of new Bitcoin reduces by half. While the demand keeps increasing steadily, the supply decreases at a constant rate. Consequently the price of Bitcoin increases. This deflationary model of Bitcoin and most other cryptocurrencies make them a great store of value.
The one main problem Bitcoin solves is the problem of the middle man.
This one is something that all of us can relate to. How many times have we paid extra 2% processing charges for swiping credit card at fuel stations in Bangalore. If I go on to add the extra fee that the middle man here levy's on me, then it would amount to a huge amount probably more than my monthly salary.
Just waiting to see Bitcoin and other cryptos achieve mass adoption.
Thank you for visiting my post and sharing your opinion.
I feel it will be also interesting to see how India and other countries' government defines the regulations for cypto uses. If they keep banning it or delay it, Bitcoin will be unable to reach to the position where it should be.