As the United State's debt increases at alarming rates as a result of ridiculous government overspending, concerns over rising interest rates causing inflation are growing.
Fiat currency's inevitable failure is widely agreed upon by economists, however the question of what will be used as a global currency remains widely disputed.
Most economists believe that Gold is the future of all currency, while some believe that cryptocurrencies like Bitcoin are the future.
To make clear my bias, I am a big believer in Bitcoin because it is much easier to transact than gold, and requires no middle man.
So what is Bitcoin?
Bitcoin is a decentralized digital currency. "Decentralized" means that any Bitcoin that one owns is solely controlled by that person. No government, business, person, or hacker can seize that Bitcoin. It should also be noted that I use the term "Bitcoin" losely, and that I am referencing cryptocurrency in general when I say that. Bitcoin is easy, fast, and very cheap, or even free to transact. Sending 10 million dollars worth of Bitcoin to someone else only costs 0-10 cents.
Gold, on the other hand, is not digital, but physical. This, obviously makes it much harder to transact, store, and keep secure, without using a third party. Gold, however, is much less volatile than Bitcoin, in the short term.
The argument commonly used against Bitcoin for why it is not a good store of value is because there is no intrinsic value. Intrinsic value, however does not exist. Nothing in the world has "Intrinsic value". Bitcoin's value, however, comes from a process which similarly creates gold's value called mining. Bitcoin can cost more than copper and aluminum to mine. Bitcoin's value is also presented through it's superior technology, limited supply, and ease of use.
Bitcoin eliminates the need for central banks, which ultimately democratized money for everyone. Over 2 billion people in the world do not have access to central banks, and access to easy ways to buy gold. Bitcoin, however, is open to everyone.
Bitcoin's price has nothing to do with the argument for it superiority, as well. It's image has been tarnished by the media which makes Bitcoin appear to look dead. In reality, Bitcoin's price has dropped much further than the recent plummet.
A look at Bitcoin's logarithmic chart demonstrates Bitcoin's constant uptrend, despite it's recent drop.
So why hold a currency that decreases in value by 2% every year, and is drowning in government debt?
Bitcoin is the democratized, decentralized future of money.
Interesting post, Danny. I like how you clearly try to explain to your audience exactly what this kind of currency is. Here are a few suggestions: 1 - can you quote and expert on bitcoin and why it's valuable? 2 - try to shorten your post. There are some parts that can probably be edited down a bit.
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