Why crypto currencies?
Crypto currencies could be the solution for the financial problems of our society. The central bank has no control over Bitcoin and most crypto currencies. Therefore crypto currencies are a thorn in its side. Because our central banks simply print money that is not covered. Nixon removed the gold peg to the USD to finance the Vietnam War, so our money is no longer worth anything. Most importantly, the central banks print vast amounts of new money, which makes inflation higher and higher and you lose about 2% every year if you leave your money in the bank.
Bitcoin is inflation protected
Bitcoin is designed so that there will only be 21 million Bitcoins by 2140. More than 17 million have already been produced to date. The Bitcoin price has risen since its creation by over 7000%. There will also be fewer and fewer Bitcoins in the future as bitcoin production (mining) is reduced by about half every four years. Thus it is comparable with gold. The demand is increasing, but the quantity of goods is limited. So it follows logically, that the price must rise.
Bitcoin as world currency
Bitcoin was designed so that everyone in the world could use Bitcoin defined by the code. There are 8 digits after the comma, so one Bitcoin is 100’000’000 Satoshis. A Satoshi is the smallest unit of Bitcoin, comparable with Rappen with the franc or Cents with the euro. Optimists estimate that at some point a Satoshi will make up about a cent, so you can imagine the potential that Bitcoin has. Then there will be some Bitcoin millionaires more than already now.
The advantage would be that if Bitcoin were truly accepted as a means of payment by the whole world and by governments, it would be a safe, independent and inflation-adjusted currency and would provide access to financial markets for a number of emerging countries. Bitcoin works as long as there will be the Internet and it is really impossible to imagine life without it as long as we are not hit by a meteorite or some other natural disaster.
Therefore I am optimistic that Bitcoin and CO. will remain us in the future still for a long time and now is exactly the time, in order to invest and also use into these crypto currencies.
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