7 Reasons Why Bitcoins Are Better Than Fiat Currencies, Bitconnect
7 Reasons Why Bitcoins Are Better Than Fiat Currencies
7 Reasons Why Bitcoins Are Better Than Fiat Currencies
One of the most asked questions I get when people detect I work in the Bitcoin industry is ”Evander, why should I begin using Bitcoins when I have Dollars (Or any other fiat currency)?” Instead of explaining it to each person for ten minutes, I figured I’d just make an article about it that I can send out with a ordinary hyperlink. Hell, I might put the link in my email signature!
For Your Information, “fiat currency” is any national currency decreed legal by the national government, but is intrinsically valueless money. Fiat currencies no longer represent gold deposits or other things of known market value. They are just the accepted lumps of national paper, printed by a private central bank and loaned to the national government, with interest. All fiat currencies are debt instruments.
The U.S. Dollar and other fiat currencies certainly have their own inherent advantages, which mostly revolve around their acceptance by the banking systems that create them. These will prove fleeting in the coming years, whereas Bitcoin’s advantages are built into the technology, can be amended or updated through the protocol, and are built to stand the test of time.
Here are five reasons (out of many) why bitcoins strike dollars, both now, and in the future. I will use the global reserve currency, the U.S. Dollar, for all relevant fiat currency examples, but any centralized bank note will still have the same principles apply. Please feel free to reference this in the future, and share it with your friends. So let us begin…..
1. Bitcoin Gives Financial Power to The People; Takes it From Banks
Before Bitcoin was officially launched on January 3rd of 2009, the modern world had never had a financial system without total control by the banking industry. You can go back several hundred years to the time when paper currencies were direct claim checks for gold deposits. Banks were in control of the entire system, especially when they figured out that they were the only ones who knew how much gold was, or wasn’t in their possession, which led to the current legalized hustle known is “Fractional Reserve Banking.”
In “Fractional Reserve Banking,” banks can, legally, only be held responsible for having a fraction, usually 10% or less, of the funds they have on loan. So if they lend out $100 USD, they are only responsible for having $Ten or less on forearm to cover that loan. This explains when the “Grexit” was going on in the Summer of 2015, and people kicking off hitting the bank to take money out en masse, known as “a run on the banks,” the banks simply closed, and limited withdrawals to $60 a day. Banks are only one miscalculation away from being totally bankrupt, as the emperor truly has no clothes. Or cash.
Now if you want to beholden to this system this is a choice, not the only game in town. I have lived for three years without a bank, and many others in the Bitcoin industry are doing it every day, so it can be done. An independent Bitcoin economy, with businesses like BitPay, OpenBazaar, and Purse.io give you the a real option of having your own economic system, without being tied to a bank.
Yes, you can have economic power on a peer-to-peer basis, but you have to want it. You have to be strong enough not to live in fear of separation from the establishment. Most people are so dependent upon banks they can’t imagine life not tied to one. The problem is not need for an option, its courage to accept one. You have to want to be free from the banking system, and then have the maracas to make it so. With Bitcoin, you have that option, for the very first time in modern history.
Two. Fiat System supports Kleptocracy; Bitcoin Will Rebuild Free-Market Capitalism
Andreas Antonopoulos explains this point far better than I ever could……
Trio. Bitcoin’s Appreciation Strikes Dollar’s Inflation
Very first, many people actually do not know what inflation means. Having been in banking for years myself, I discovered that most people believe inflation to be the price of goods and services rising over any period of time. This is the effect of inflation, not inflation itself, an significant distinction. Inflation means that the amount of U.S. dollars, the “global reserve currency,” or any currency, in circulation resumes to increase. It is the number of currency units in circulation and is not tied directly to market prices.
Consistently, since WWII, the U.S. Dollar has lost value every single year due to inflation. This is a bad thing since the more actual dollars there are in circulation, the less each dollar is worth in circulation. Economic policies like “Quantitative Easing” lead to as many as $1 Trillion U.S. Dollars being made by the U.S. Federal Reserve, annually. This leads to real-world inflation levels of 5% or more, per annum, even tho’ the government will tell you 2% or less.
Prices in the government’s CPI index base this on twenty five items that they switch conveniently to fit the numbers the want to display. If meat prices are rising 10% a year, it is simply liquidated and substituted with something that doesn’t reflect the actual higher rate of inflation. A good way to game the system, and keep you ignorant.
Bitcoin, on the other palm, is a deflationary currency. It has a set amount of bitcoins in circulation (12.Five fresh Bitcoins are added into circulation every ten minutes), and a capped maximum amount overall (just a hair under twenty one million). This coerces the Bitcoin value to increase based on standard supply and request economics, or “sound money” principles. As more people inject the Bitcoin ecosystem, Bitcoin’s value per unit increases over time, a very foreign concept to anyone brought up to use a paper currency, as they NEVER rise in value.
To illustrate this significant point, Bitcoin’s market value has enlargened over 50% so far in two thousand sixteen after rising over 35% last year, when it was the world’s best performing currency of 2015. For those who use dollars exclusively and are not familiar with this economic concept, this is called “appreciation.” When is the last time a U.S. Dollar’s value “appreciated” that much in a year? That would be sometime around never. Paper currencies are designed to be debased by banks and government, whenever it serves their needs. This is superb for them. For you not so much…..
Four. Bitcoin’s Speed Hits Dollar’s Speed
Attempt to stir $1 million dollars, physically, or otherwise, from your bank to….. anywhere! Attempt to walk up to a teller at your bank, imagining you had over $1 million laying around in your account, and just liquidate it from the bank. Leave behind about matching Bitcoin’s speed in transferring that money to the destination of choice, you’ll very likely be put on any number of terrorism witness lists across the nation, for openers.
Not only would your interrogation by numerous layers of bank personnel by arduous, but you’ll very likely be tailed, and mugged. Attempt to take $1 million in cash on a plane or through any TSA Checkpoint/Customs Area. You will make slew of enemies along your journey, and join more Most Wished lists. It’s just a pretty bad idea, overall.
In contrast, hundreds of millions of dollars in Bitcoin are moved at a time on the blockchain from one address to another. In a matter of seconds, millions of USD worth of Bitcoins can be sent. This is not possible in dollars without a major identity shakedown from numerous fronts.
So if you desired to walk out of a bank with “your money” in cash, and take it to Tokyo, besides the time of traveling itself, you will have to hop through so many hoops of regulation and invasions of your privacy, the time it would take you to get there may dual. With Bitcoin, if you have a smartphone wallet, the same amount of money can be transferred and confirmed in the same time it would’ve taken you to leave the bank branch. Bitcoin is a swifter way of doing business.
Five. Bitcoin Costs Significantly Less to Send Than Dollars Do
Let’s say you just desired to wire the money. Go down to your bank, and see a teller or banker, which has it’s own cost in time and travel fees. Pack out the form, and pay a bank fee, which will be a vapid fee of around $30 or a percentage, depending on the bank and how much you are sending.
Privacy is a nice utopian idea, but it’s not for the real world of finance. Now the bank knows what you did, how much you did it with, where it's going and who is picking it up. If you are sending $100,000 USD or more, you may expect a rubber glove treatment by bank personnel.
Let’s say you send it to a person in China doing business with you. They have to travel to their bank, which is a cost. They can pick up the transfer, after exposing their identity, the fact that they are receiving money, and they may have to pay a fee as well. And this can take anywhere from one to five days, depending on the amount, and where the transfer is going. So it’s inconvenient, costly, and timeconsuming. A triple threat!
With Bitcoin, you can send any amount to someone’s QR code or address and pay about 0.004 BTC.
Leave behind using something like Western Union, where fees can go from Five–20% of the amount transferred! That’s why the remittances market is so fertile for Bitcoin. The Third World is waiting, pleading, to reach out and grab a better option than Western Union transfers. Anything is better than that!
6. Bitcoin Security hits Dollar Security
How many times have you lost $20 here or $20 there? Or lost your entire wallet, in your lifetime? Five times? Ten times?
Ok, now how many times have you lost your computer? Or digital wallet? Stupid people can do a lot of things, but let’s agree it is much tighter to do and will happen less often over time. Some things are a lot less likely than others.
Losing paper money is relatively effortless to do, leave behind actual theft of it. Identity theft is now somewhat commonplace (about 7% of Americans in 2014, kicking off at age 16), and counterfeit bills are still an issue, as countries around the world proceed to switch their bills in hopes of stopping it.
Bitcoins are digital in nature, so they can be backed up and saved to other servers, computers, protected by multi-sig, passcodes, paper wallets, offline vaults, cold storage, brain wallets, etc. The security options are only limited by your imagination.
There are indeed only three ways to “lose” your Bitcoins, which are trapped in a public blockchain anyway, so they are never truly “lost.” You give your Bitcoins to someone for a good or service and they do not provide said service. You give your Bitcoins to an exchange, which then gets hacked and loses them for you. Or you leave behind your password or credentials to your wallet, locking away your Bitcoins into a vault-like abyss forever.
All of these are very preventable with a little forethought, and wouldn’t happen by accident, like putting your wallet down at a bar or at a gas station. Bitcoin security options far exceed those of common dollars, especially those held in your mitts (Stick ‘em up!)
7. Bitcoin’s future is brighter than the Dollar’s future
“The Almighty Dollar” is still king of the world when it comes to paper currency. but this ain’t your Daddy’s Dollar. Today’s U.S. Dollar is over seventy years old as the global reserve currency. This means it has liver catches sight of, a severe gutless, and a leaky bladder. Uneasy is its crown on the throne. The clock is ticking on the ‘ole Greenback.
In case you haven’t been told by your mainstream media outlet (That wouldn’t be the very first time,) Russia, China, Brazil, India, and South Africa have created a world bank called the BRICS Development Bank for the foot purpose of hating the U.S. and the Dollar they railed in on. These countries represent 40% of the world population and 40% of the global currency reserves, so it’s a Gigantic deal when they all form an international hate group.
Interest rates are already at near zero, or less than zero, and dozens of countries have been performing bilateral trade agreements to avoid the dollar for the past few years. The US is already approaching $Nineteen trillion in national debt, the U.S. Dollar can collapse at any time.
China and Russia are buying up gold quicker than it can be mined over the last several years. They are expecting something, are building a leveraged position, and the U.S. Dollar is not going to be on the inwards of the economic plan coming its way. The Dollar won’t be around as the world’s superior currency for too much longer, the way things are going.
Meantime, Bitcoin is not going anywhere. Bitcoins are chunks of digital code, decentralized information. They are not being debased now or in the future. They can be sent by any form of information transfer, from morse code to text messages to a napkin passed along a table at a diner. They can be divided into millionths of units, and the skill set of a Bitcoin makes them the most versatile currency the world has ever known. Bitcoin’s value rises with every fresh person who detects its abilities.
Bitcoin cannot be killed, no matter how many obituaries the mainstream attempts to write for it. Like killing Jason Voorhies, who carries a keyboard instead of a machete. Bitcoin is the future of money. Dollars are money’s past. Like still playing a CD in 2010, you’ll catch up.
China, the U.S., Tunisia and other countries are either discussing marking their own digital currency or have done it already. They’re admitting their paper tiger is just that, and its time to come in the 21st century. I already have. Have you?
Don’t lodge for a bad copy of a classic movie. Observe and love the original today. You’ll be glad you did.
Author : Evander Clever
Evander Wise worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inwards. His travels, practice and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the fetters of economic slavery being created by global establishment coerces. Evander gets you thinking about what money indeed is, and how it will work for you going forward. The world of finance is getting ready for incredible switches, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Movie University