Before you dismiss bitcoin as a fad, ask yourself do you know the definitions money, currency, and fiat currency? Ask yourself, what is the difference between a $20 bill and a $100-dollar bill? If you, can’t answer those questions then you owe it to yourself to keep reading. Why? Because you are participating in the greatest transfer of wealth the world has ever known.
With bitcoin ushering in a new paradigm you have a chance to participate in this transfer in a truly democratic and decentralized way based on meritocracy and not a top-down model that we have been accustomed too.
It’s a completely new and revolutionary model that the current establishment either doesn’t understand or doesn’t like. Either way, they speak of it as something you should fear and dismiss.
So what is many? According to the constitution of the United States, the only true money is gold and silver.
Money is a medium of exchange that is portable, durable, divisible, and fungible (interchangeable).
One of the major keys to consider here is that money is a medium of exchange and has to possess the four properties to qualify as money. It can be anything we want it to be. What has been accepted as money around the world for thousands of years is gold and silver.
The constitution specifically says this is the only true money. This was the case until 1913. This is when the federal reserve was created along with the IRS. One cannot exist without the other.
What are other types of currency?
With the creation of these two institutions, we moved from using money to currency. Generally speaking, currency is something that is generally accepted or in use. In an economic system, an example of currency is the dollar, the Euro and other forms of currency we use but don’t consider them as currency like credit cards, gift cards, EBT cards etc. They become the medium of exchange. They are portable, durable, divisible, and fungible (interchangeable). They are also digital. Where does the perception that a dollar or a Euro has value come from?
They come from a governmental agency declaring that those currencies are legal tender. Legal tender means coins or bank notes that must be accepted if offered in payment of a debt. Who has the power to decide legal tender? The government of course! The dollar and the Euro are declared legal tender by governments. This is the definition of a “fiat currency.” In other words, the government decided what would be used for the exchange of payment of debt.
You work forty hours a week, the company owes you payment and depending on which country you’re living in, you get paid in dollars or Euros to satisfy the debt. Often times you don’t get coins and notes. You simply use the currency digitally. It is something you are familiar with and accept every day.
It’s all part of a central banking system controlled from the top down. In other words, those that created the system stand to benefit the most from the system. That system has shut out and impoverished most of the world for centuries.
From being robbed of wealth to a revolution
You may remember the economic crash of 2008 when the banking and real estate industry was hit hard. Actually, the people that lost pensions and their homes were hit hard. The banks got bailed out so their businesses wouldn’t go under. But millions of people worldwide lost their retirement nest egg and their homes. It was a robbery that no banker to this day has been prosecuted for in the United States!
The next year (2009), a new revolution in economics was ushered in with the invention of bitcoin and digital currency.
It has taken a few years for it to get a firm foothold around the world.
I asked you some questions, in the beginning, to make you think about what money really is and how it becomes valuable. The reason being because bitcoin and cryptocurrency is a new economic paradigm that is about the change the world!
It is still relatively new. It has created millionaires literally overnight in many instances. However, cryptocurrency is only the tip of the iceberg.
The technology that created cryptocurrency is so dynamic that many industries it will spawn have yet to be thought of and created. Think about the internet in 1994. Could you have imagined everything we do on the internet today back then?
Will you sit by and skeptically watch?
Could you have imagined then how email would change the postal service, or how amazon would change shopping, or how eBay would change selling the items you had in the garage?
Cryptocurrency is spawning a new global economy. The technology that spawned cryptocurrency will change governments and industries like banking with less fees and decentralized accounts, finance by doing crowdsourcing, micro-loans and peer-to-peer lending, title records and medical records plus much much more that we have yet to think about.
The generation that invents the technology can only think in terms of what it can disrupt. The next generation invents the new industries. Like from electronic email as a faster way to communicate, to Facebook and real-time communication and chat.
So what is the difference between a twenty dollar bill and a one hundred dollar bill? Only your belief about what value either bill has. They are printed on the same paper. In your bank about they are only digital representations of value.
You becoming more educated about this new revolutionary industry is the key to you capitalizing on the redistribution of wealth. This transfer will occur over the next ten to twenty years. Remember the dot com boom? There is about to be a blockchain boom lead by bitcoin cryptocurrency and the blockchain technology that it has spawned. Will you skeptically sit on the sideline? Or learn more so you can make an educated decision on where to jump in or not? Click here for cryptocurrency education.
Photo source: insidebitcoins.com