Why Bitcoin Qualifies spil Money while the Dollar is just Currency
Spil national fiat currencies leisurely, but surely, fall by the wayside, or get outright substituted by digital currencies, its time to review the advantages of using Bitcoin spil money going forward.
Currency and money are not the same things, they just have many of the same properties. The textbook definition ter your dictionary may even give credence to money being “stamped by public authority”. That’s interesting, given the fact that before there were governments creating paper currency people did exchange beads for feathers, or milk for eggs. There wasgoed barter, spil currency, and Gold wasgoed real money for its capability to hold value since the dawn of time.
Currency is man-made to eliminate Gold spil an independent, natural medium of exchange, to superb effect. It takes power from the people and passes it to government te the form of “currency”. Money pre-dates government-created currency via the history of man, and their central banking system. If man only existed te the last three hundred years, currency spil money would be fairly accurate, but overall, given definitions are incomplete. Knowing the difference inbetween currency and money is significant to your future, spil the global economy becomes more and more unstable under a mountain of fiat-induced debt.
Money and currency are similar, but not the same
Both money and currency share many properties: They are both units of account (are numbered te value), a medium of accepted exchange and portable. They are both divisible (into smaller units of measure), durable (won’t physically turn to dust after a duo of days) and fungible (the value of the unit is the same for you spil it is for mij, has similar value here or there). What makes money different is it is also a store of value, meaning it will hold value, or grow, overheen a long period. Can you waterput it ter a bankgebouw, safe deposit opbergruimte, or under a mattress, save it, and it will retain its monetary value overheen time? Some currencies are better monies than others.
The Difference inbetween Currency and Money
Many don’t understand the difference inbetween currency and money, and which is which. For the sake of familiarity, let us use the U.S. Dollar, the world’s global reserve currency, the creme-de-la-creme, spil an example. Is it currency and money, or just a currency? It is portable, fungible, durable, a unit of account, a medium of exchange and divisible into smaller units. Is it a store of value?
Your government, particularly te the U.S., will use a national scale to voorstelling an annual inflation rate called a CPI (Consumer Price Index) to reflect the value of of money versus various goods and services. Ter the U.S., the government has a vested rente ter keeping the rate of inflation at around 2%. Any fiat currency is built on trust te the currency since it isn’t actually backed by anything of intrinsic value. The problem with the government’s numbers is they tend to be fudged to reflect the desired result. If beef is going up ter price at 20% a year, which it has done very recently, it is substituted te the CPI with something else that will get the numbers desired. Suffice to say, if your look at the factors that make up CPI or the inflation rate, the goods and services used has switched dramatically overheen the last generation. This has bot to keep the 2% story alive and well. (Just don’t look behind the curtain too much.)
Plus, you have the government on the hook for cost-of-living increases ter many entitlement programs. And with more and more people dependent on the government, and the government overheen $Legitimate,000,000,000,000 ter debt, showcasing the cost-of-living is stable helps the government immensely. Whether it is the truth or not is another story. Perianne Boring did a superb article on this subject for Forbes last year if you want more detail on this topic. It explains how actual inflation, spil of last year, wasgoed closer to 5% than 2%. A pretty big margin for error, I’d say. If you avoid the establishment narrative and do your own due diligence, it’s amazing what you can find out about how the economic world indeed turns.
So you can make a feeble argument that Dollars are a kleuter of money but are just very “bad actors” spil money unless you like losing value, consistently. The point is dollars are not an effective store of value because they lose value every year. Since the privately-owned and operated Federal Reserve took overheen national currency production ter 1913, the U.S. Dollar has lost approximately 97% of its value. Many economic experts believe that it will proceed doing what it has bot doing for overheen a century, declining, until it reaches its true value of zero. Inflation means your dollar loses value every year, so how can it be a store of value? It cannot.
Bitcoin, or gold, ter tegenstelling, can be considered money te its truest definition. Bitcoin’s market value, ter US Dollars, wasgoed about a five cents five years ago and is presently just under $250 USD. Critics love to bring up the peak of $1100 ter November of 2013, but that wasgoed obviously a bubble created by Mt. Gox “Willy Bots” and China’s capability to buy Bitcoin before government intervention. Now that the market has corrected itself, Bitcoin has returned to its original trajectory it would’ve had if Mt. Gox hadn’t occurred. Its current value is well ahead of its value te October of 2013. The point is Bitcoin is anti-inflationary and is designed to be a store of value. It cannot be inflated to demolish its future value to pay for wars or debt. It is not debt-based, strafgevangenis government managed by a private subcontractor. It is governed by mathematic algorithms, and you know how many bitcoins there will be now and decades into the future.
Gold also has seen slew of bubbles and market manipulation. It has bot spil high spil $1900 USD or spil low spil under one thousand dollars overheen the last few years. Bitcoin certainly didn’t invent market bubbles and manipulation. Gold has bot seen spil money for thousands of years. The only real problem is making it divisible. It is somewhat difficult to mine and create coins and use them ter the general exchange of goods and services. One nugget of gold is not worth the same spil another nugget of Gold. You can make them all divisible and fungible, but it takes a government or a private company to do that. Gold is generally not circulated spil money but held for overall investment value, and it has value spil a useful metal te industrial capacities.
No currency or money has “intrinsic value”. Wij all give thesis things value or assign things value, based on our belief that wij can exchange them now and te the future. Many have deep questions about how long Bitcoin will be around, spil well spil the U.S. Dollar. You may not want to invest, long-term, ter currencies spil much spil you should ter money. Money always hits currency overheen time, because of money’s definition spil a store of value overheen time. Just look at Gold versus every paper currency that’s everzwijn existed. Gold has remained valuable for thousands of years running. Gold is money, it’s just not very good at being money. Gold is a good investment, past, present, and te the future. Paper currencies of human history, not so much. Paper currencies have a very poor track record of lasting overheen time. The Dollar has bot no different than any other fiat currency. The U.S. Military has just bot able to “stretch the soup”, if you will. Nothing last forever ter fiat currency.
Bitcoin has bot announced dead overheen 50 times by the mainstream media, yet it has shown to be a superb store of value if volatile. It is volatile while growing te relative value, upwardly volatile. Paper currencies, like the dollar, have shown volatility on a downward spiral overheen time. Just something you should think about.
If you toevluchthaven’t already, Mike Maloney does a superb job of going into detail about thesis key differences te this movie, “The Hidden Secrets of Money”, Part one of a four-part series. Watching and subscribing to him would be a wise budge to further your financial education, and understand where this all may lead, and where Bitcoin may getraind into your future.
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