You probably missed the first part of this series, catch up on it here. And if you dream of using Bitcoin as legal tender in your country, just know that you are not alone with this feeling. Fountain; the waiting time could be short. Bitcoin is tearing up the space and many governments are likely considering going the same route as El Salvador. Nayib and his team are setting the pace and you will love to see it!
Getting other nations like the Central American nation to adopt Bitcoin will not be easy. But when we get where we are, it’s easier to move on. The exciting money will win, or something like that … at least.
Fast, cheap, convenient … the previous part reflected these. If you’ve recently made a Bitcoin transaction, you must have felt at least one of them. If you’ve used the lightning net, you’ve surely felt the three of them!
In fact, Bitcoin is exciting for more than these reasons …
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Bitcoin unites the world, the users; to be exact. Imagine a world where a currency like Bitcoin has the upper hand. ‘One currency to rule them all’. Bitcoin is flaunting to the general public as another great flexibility. The differences in value and logic between various currencies used around the world are a great source of argument and confusion. Exchange rates vary, what one currency is worth in relation to another currency changes almost every hour. The logic behind these variations is the main source of misunderstanding.
A nation’s currency is supposed to reflect its economic and political success, but sometimes the latter prevails, and the currency of economically stronger nations could easily lag behind a nation with an obviously weaker economy. Political disputes over the financial system are a frequent cause of international rifts. This is where Bitcoin comes in …
Countries adopting Bitcoin may forget to set exchange rates, and if those rates are actually earned, it could save a lot of resources and misunderstandings.
In reality, Fiat is traveling a longer distance than you would ever think. Beyond the boundaries of ‘buying and selling’; Money is used for many other types of settlements, legal and others. For a sheet of paper with intrinsic value that anyone can hold in their hands at any time, running on covert technology that practically prevents you from looking at it; Fiat is anything but transparent.
I would often ask myself how the treasury deals with taxes and how the budget is paid out, an idea that is sure to be shared with many others. At the national and lower levels, it could be very helpful to keep track of money movements and keep track of how much money is being held by individuals and organizations at any given time.
Forensics aside, a better economic decision could be made if each knew exactly how much the other is worth. You would argue against this utility, but it comes in handy when it is. But that’s impossible with Fiat.
A Bitcoin transaction not only shows the amount transacted, but also carries the accounts involved and every detail of the transaction. Not only is this transaction visible to anyone with the hash, but the details of the previous transaction as well as the details of the accounts involved can be easily traced. Cryptocurrency transactions are transparent this way.
A currency that has handy tools for proper verification and authentication is an exciting currency. more exciting than Fiat. A feature many would loathe for obvious reasons. But yes, Bitcoin gives you that … when you need it. It is wonderful.
Do you remember the scenes from the 2014 film “A Million Ways to Die in the West”? I’ve lost memories of most of them. However, I still remember the scene where a dollar bill was placed as a bet on a shooting challenge.
“Take your hat, boy, that’s a dollar bill!” The excitement, the respect, it was a whole dollar bill! Fast forward in our society today, dollar bills and every other fiat note no longer achieve such a value and respect by a long way.
Years of continuous use by an ever growing population, years of continuous printing by a continuously running printing machine; The value of fiat currencies has suffered so badly from inflation and poor economic practices. Remaining true to its original worth is a lost war, which it is tired of waging and which has given way to a steep decline in value. The US dollar remains the most widely used medium of comparison to the other fiat currencies, but despite this widespread use and good economic security, its value has been in free fall over the past few decades.
Quite a logical thing to do, considering that the past five years have printed a higher percentage of the dollars in circulation today. Other currencies have seen similar irregular inflation as the world economy continues to be unstable. You will agree with me that the current global economic system is imperfect, personally I would say it is almost “totally flawed”. Although the fiat system and centralized currency issuing system survived for so long, they weren’t really that efficient. The parabolic depreciation over the years as a result of these deficiencies.
“There will ever be twenty-one million bitcoins”. Bitcoin’s fixed supply is seen as an aid to inflation. It works for me. Yes it does. The world economy is characterized by unregulated inflation. Millions are being printed out of the tin air, just like the tether machines, lol. Seriously, the tether system largely maps the global economic system.
The total supply of bitcoin cannot grow, the circulating supply may vary as a few million bitcoins are not mined and thousands of bitcoins are lost due to mismanagement and accidents. Instead of increasing the supply; Bitcoin can only increase in value, we have seen that this has done very well.
Hundreds of words already! But there are more features and privileges that Bitcoin easily gives to its users and anyone who accepts it as legal tender. But we’ll get to that in the next part. Stay tuned!
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