DOLLARS, GOLD & VALUE $$$
DOLLARS, GOLD & VALUE $$$
Dollars what are they? Gold, why is it valuable? What is Bitcoin? Why is it valuable?
Dollars or notes of a country are backed by certain 'value' that is calculated based on the international currency markets. Notes are usually native to a country like the Australian Dollar AUD and the Japanese Yen for example. Or they are used by a group of countries as in Europe/ European Union with the Euro. These currencies trade on the world currency markets and their value is determined by a host of factors including; faith, trust, market value, politics, market constraints, taxes, gross domestic product (GDP), International debt, world market impact, the value of the currency is regulated based on monetary controls, taxes, issuance, inflation etc.
Gold is a precious metal and a rare commodity and has been used as a token of value for a long time. In order to increase golds value people turn it into jewelry, however it's intrinsic value is what is usually referred to. It's purity and weight. The problem with gold is in a digital world it is non-portable and non transferable. It is not possible to transmit the gold itself digitally, only with promissory notes of some description. Therefore it is problematic as far as transfer of value goes in a digital world. Gold has been traditionally a store of value however in the modern day unless there is a complete digital meltdown of the internet globally I personally believe it has no purpose aside from electronics, jewelry etc. However if that were to happen and we did have a digital apocalypse the probabilistic value of gold will be lower than that of actual food and other things that provide utility because you can't eat it and can't do anything with it.
What is Bitcoin? It is a digital currency/ asset that has been released globally. It is a peer to peer currency/ asset, based on a network of nodes that validate the mathematical proof of work algorithm that underpins its blockchain technology. There will only ever be 21 million bitcoins ever released as part of its creation, this means that as a currency or asset you cannot make more of it thereby depreciating its value. As such it is a digital asset that increases in value the more demand there is for it. As a store of value it is robust and has never been hacked, it is globally transferable and is a peer to peer asset. This is probably it's biggest selling point in that it doesn't require any other external intervention either by institution or government to find value or move from person to person.
Why is Bitcoin valuable? Primarily it is because people see it as a sound store of value, it represents portability and utility. It's ability to be transmitted globally, used for purchases and as a store of value is what people like.
Years ago, for example in January 2013 it was approximately $13 per Bitcoin, Today five years later 5th June 2017 it is worth $2567 USD. This is a key indicator that globally people see it as a functional and highly usable digital asset/ currency. That's a 19,000% increase... quite astounding actually with only a 20% increase we will see 1 Bitcoin worth $3000 USD in my opinion this is the new consolidation point around BIP 148. After this I see it skyrocketing for the next few years as it becomes more mainstream and as applications are pegged to it via side chains. Thanks for reading & happy bitcoin-ing :)
and potential value and as their percieved stability compared with other currencies
Dollars what are they? Gold, why is it valuable? What is Bitcoin? Why is it valuable?
Dollars or notes of a country are backed by certain 'value' that is calculated based on the international currency markets. Notes are usually native to a country like the Australian Dollar AUD and the Japanese Yen for example. Or they are used by a group of countries as in Europe/ European Union with the Euro. These currencies trade on the world currency markets and their value is determined by a host of factors including; faith, trust, market value, politics, market constraints, taxes, gross domestic product (GDP), International debt, world market impact, the value of the currency is regulated based on monetary controls, taxes, issuance, inflation etc.
Gold is a precious metal and a rare commodity and has been used as a token of value for a long time. In order to increase golds value people turn it into jewelry, however it's intrinsic value is what is usually referred to. It's purity and weight. The problem with gold is in a digital world it is non-portable and non transferable. It is not possible to transmit the gold itself digitally, only with promissory notes of some description. Therefore it is problematic as far as transfer of value goes in a digital world. Gold has been traditionally a store of value however in the modern day unless there is a complete digital meltdown of the internet globally I personally believe it has no purpose aside from electronics, jewelry etc. However if that were to happen and we did have a digital apocalypse the probabilistic value of gold will be lower than that of actual food and other things that provide utility because you can't eat it and can't do anything with it.
What is Bitcoin? It is a digital currency/ asset that has been released globally. It is a peer to peer currency/ asset, based on a network of nodes that validate the mathematical proof of work algorithm that underpins its blockchain technology. There will only ever be 21 million bitcoins ever released as part of its creation, this means that as a currency or asset you cannot make more of it thereby depreciating its value. As such it is a digital asset that increases in value the more demand there is for it. As a store of value it is robust and has never been hacked, it is globally transferable and is a peer to peer asset. This is probably it's biggest selling point in that it doesn't require any other external intervention either by institution or government to find value or move from person to person.
Why is Bitcoin valuable? Primarily it is because people see it as a sound store of value, it represents portability and utility. It's ability to be transmitted globally, used for purchases and as a store of value is what people like.
Years ago, for example in January 2013 it was approximately $13 per Bitcoin, Today five years later 5th June 2017 it is worth $2567 USD. This is a key indicator that globally people see it as a functional and highly usable digital asset/ currency. That's a 19,000% increase... quite astounding actually with only a 20% increase we will see 1 Bitcoin worth $3000 USD in my opinion this is the new consolidation point around BIP 148. After this I see it skyrocketing for the next few years as it becomes more mainstream and as applications are pegged to it via side chains. Thanks for reading & happy bitcoin-ing :)
and potential value and as their percieved stability compared with other currencies
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