The Truth about Bitcoin and Alternative Currencies

The Truth about Bitcoin and Alternative Currencies



the truth about Bitcoin and alternative currencies pls dollar has been the world's most popular currency for over half a century but that's starting to change our central bank's been meddling with the value of the dollar and people are looking to replace it with something better one currency has been making news lately Bitcoin a new digital currency lots of things have been used as currency throughout history gold and silver wheat seashells tobacco salt paper and numerous other things some currencies have stuck around lots of died off but why what makes some currencies better than others it's not any government to create it's their properties certain properties are essential to a healthy currency and if we keep score the US dollar doesn't look so great especially in comparison to historical favorites like gold and silver or to Bitcoin a sound currency stays valuable over time has a limited supply and is easily divisible and portable if you want to compare currencies head-to-head we need to understand the importance of these qualities imagine that a currency doesn't stay valuable over time for example let's say we use bananas as a currency well bananas have a lifespan eventually rot a large store of savings and bananas would eventually turn to mush and nobody wants to trade rotten fruit with each other the US dollar doesn't rot but thanks to the central bank it's lost about 95 percent of its purchasing power in the last 100 years gold and silver don't rot either they're durable and have a long history of being valuable Bitcoin also doesn't degrade over time the ones and zeros will be the exact same 50 years from now it's a decentralized currency not issued by any one institution which means its value is independent of a government or central bank as long as people find it valuable it will stick around next imagine a currency without a limited supply let's say we use wooden nickels as a currency what happens when people start carving their own if people can easily create more currency for themselves economic prices become meaningless since the 1970s the US dollar is at anything but a limited supply the central bank has created trillions of dollars out of thin air devaluing everybody else's dollars in the process in contrast the supply of gold and silver has been relatively constant for the last few millennia Bitcoin also has a stable supply in fact at any given time we know almost exactly how many exist and at what rate they will be produced in the future no more than 21 million bitcoins will ever be created it's written straight into the code counterfeiting might also increase the supply of currency by defrauding people the only difference between money printing and counterfeiting is who's behind it the result is the same fortunately it's difficult for citizens to counterfeit US Dollars gold or silver but what about something digital like Bitcoin it uses mathematical cryptography and a public ledger called the blockchain to make it impossible to counterfeit picture a currency which does not divide easily what if cows were used as a currency how would you pay for something like a loaf of bread a cow is worth much more than one loaf of bread and it would be very difficult to divide a cow into small enough units to make a fair trade the dollar divides very easily down to the penny gold and silver are a little bit more difficult to divide into small quantities bitcoins easily divided down to 100 millionth of a Bitcoin the sound currency must also be portable imagine the difficulty of using cinder blocks as currency the dollar is easily portable gold and silver are less portable though on a gold standard people usually carry around paper which is redeemable in the metals and bitcoins can be sent anywhere the world with internet access instantly regardless of the size of the transaction and at almost no cost so how do these currencies match up against each other you decide for yourself we can't know what the best currency is we discover it over time but if central banks keep inflating the money supply and people are free to choose the US dollar likely can't stand toe-to-toe with its competition to learn more about sound economics visit Feed org and to donate Bitcoin scan this QR code

You May Also Like

About the Author: Maximilian Kuhn

45 Comments

  1. Bitcoin is a scam, bitcoin can be manipulated by hackers or owners themselves. If you don’t think so,just step back a little,hear the news and think a little. Then you’ll realise that bitcoin is very to similar to fiat. To me, the makers of bitcoin are the central bankers themselves.

  2. !!!!!!  Considering the limited number of coins in each cryptocurrency and adding the presence of a concept  like 'Profit' will guarantee, with certainty, that the Concentrated Wealth and Cryptocurrencies will end-up in the same hands.
    THEN IT IS GAME OVER FOR EVERYBODY WHO IS NOT IN THAT CLUB !
    !!!!!!

  3. FTD is a highly recommended trading app (Details Here : https://t.co/y1EtqqJ8fk ) for all people out there who are trying so hard in binary trading but fail to get positive output from it. The app stands out from the rest of the pile because of its user-friendly nature and the services it provides to the user.

  4. if you think crypto currency is independent from the government and the financial system then you are very naive.

  5. People who have made this =>> (https://t.co/Ku6R8K6ktn ) have done years of research in this field before making this app and it is quite evident from the results that it produces from the very first day of use. I can say all that because I am using it myself and I have never seen anything like this before. So hop on and try this app right now because you’ll never get a better one.

  6. How the f do i pay my dealer down the block for a dimebag in bitcoin…..??? He didnt want to hear it! He was like, get that phone out of my face

  7. I wouldn’t be this happy if it wasn’t for (https://twitter.com/LisaTay44061885/status/905814603120205825 ) who has literally changed my life by keeping me away from all the financial issues that used to haunt me a lot. It not only solved my financial issues but also the time commitment thing by working on its own without me being the part of it.

  8. there is no limited supply, started with bitcoin and if it was JUST bitcoin that'd be true. But now everyone and their brother has a cryptocurrency. litecoin, ethereum and 100 more. limited my arse.

  9. Over 2 Years Trusted Site with data centers all over the world!

    1% PROFIT A DAY FOREVER!!!
    INSTANT AUTO WITHDRAWS TO WALLET!!!
    TEST FREE FOR 30 DAYS & GET 15KH/S FREE!!!

    https://hashocean.com/signup/?rid=560595

  10. Bitcoins history is short and the value is based off digital input and when it started out anonymity. Those things can (and have) changed rapidly. Bitcoin dived big time.Scandals also get a vote.

  11. There is no intrinsic value to bitcoin. Bit could would allow for the government to monitor and tax every single transaction. There would be no privacy at all and would be much easier to manipulate than the dollar. Bit coin is the US Govenments and Kosher Bankers wet dream.

  12. Do I need a smartphone for BTC transactions? I see many QR codes everywhere but I don't have a smartphone to scan it.

  13. Bitcoin really? how will a villager in India who does not even have electricity use Bitcoin….? that is why they hoard gold/silver and have been passing it on for generations….

  14. There is value in being able to alter and maintain inflation rates like you can with the dollar. Its not particularly good for an economy if people hoard large sums of currency. Infation encourages investment and spending.

  15. Gold's easy to divide. You cans split it down to micrograms if u really wanted to and just melt it back together later. The problem with gold though is its unequal distribution. One region could have leverage over another from simply having more gold reserves. The Spanish empire funded itself on gold, and the international mercantilists, with the help of monarchies, exploited colonial and domestic economies through international trade, and they conducted all of their transactions in gold.

    I don't think that artificial inflation in a fiat currency is necessarily a bad thing either, anymore than artificial contraction. It could actually be advantageous in certain situations. The real problem with the FED is that there's a built in interest rate that spikes inflation, indefinitely, over time.

  16. MMM GLOBAL is a real helping social community.In MMM all participants help together and earn up to 100% per month. #MMMGlobal #MMMExtra #Bitcoin #Bitcoins #BTC #‎BitcoinReview #‎BitcoinNews

  17. The content in most of these feeseminars is bloody obvious. It's beyond me that people actually have different views. #MMMGlobal #MMMExtra #Bitcoin #Bitcoins #BTC #‎BitcoinReview #‎BitcoinNews

  18. The content in most of these feeseminars is bloody obvious. It's beyond me that people actually have different views.

  19. I love this explanation, because it describes what a good means of exchange would be. Simplistic books seldom exist, brief video for the win. 🙂

  20. The content in most of these feeseminars is bloody obvious. It's beyond me that people actually have different views.

  21. I imagine if bitcoin has limited supply, over time people would forget their bank passwords and evenutally every las bitcoin would be locked by forgotten passwords. the last man in the world to have a spendable bitcoin would die and that'd be the end of bitcoin.

  22. This video is pretty bullshit. Bit coins have anything BUT a stable value. they were worth 1000+ dollars at some point now they're worth 200. Also bit coins don't exist in the physical world so they're value is only based on peoples opinion and not on economic realities like gold silver or some other commodity. This video is pretty fail and should be taken down or redone and should apologize lol.

  23. A limited supply… and who decides how limited? who decides its distribution? Fiat money is controlled and regulated by the state and financial industry. Bitcoin is no fucking different. It's controlled and regulated by those with the technical expertise and the greatest share of computational power. All you delusional people can't see the obvious. Only the people can control and regulate the limitation and distribution of a currency. It's the exchange of promises between free and equal persons that should determine economic life. Bitcoin is bullshit capitalism 2.0. Fuck you.

  24. Top Lel. I love how you butchered Aristotle's definition of money. Gold and Silver have remained valuable because gold and silver have intrinsic value. BitCoins do not. Enjoy your private sector fiat currency. 

  25. The value of bitcoin has seen massive fluctuations over the last 24 months, one cause of the drop in value of bitcoin was the collapse of an international drug ring, I'm not sold on bitcoin at all

  26. I love how they just brushed over the biggest problem of bitcoin, which is that's it's a much more speculative currency than all the others. Twenty new cryptocurrencies could pop up tomorrow and everyone could lose interest in bitcoin. It could easily be the MySpace of currency, or worse, the Friendster. The dollar's weakness is also it's strength — which is that it's an officially recognized state currency managed by a central bank. 

  27. SO MUCH BULLSHIT. THEY FORGET THE MOST IMPORTANT PART OF IT, AND IT'S FUCKING SECURITY. HOW CAN YOU SECURE ONES AND ZEROS FOR FUCKS SAKE, IT'S UNREAL. THE MONEY WHICH IS NOT MATERIAL BUT VIRTUAL IS FAIL. THIS VIDEO SO GHEY.

  28. I thought this was going to be an educational video, and it has good educational content, but all the complaining about the Central Bank and the Federal Reserve puts this outside of the realm of educational and makes it propaganda. The example of paper currency could have been made with any currency and any regulatory body; it did not have to specifically complain about the US's current system.

Leave a Reply

Your email address will not be published. Required fields are marked *