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Many people compare Bitcoin to gold because, like this beautiful golden metal, bitcoin is also difficult to extract. Furthermore there is little bitcoin and it stores the value in time. For those who don’t know the blockchain technology on which bitcoin is based, it’s at least foggy. On the other hand, does anyone of you know how the money from your Visa or Mastercard card goes to the merchant’s account in the butcher’s shop? I am convinced that almost nobody knows how it happens. In the shop we put the card to the terminal and simply pay. What do we care about it! We use the card and we are glad that we managed to pay again. The same will happen with a bitcoin. At some point it will be generally known and easily available money.
Unlike traditional currencies, which are usually referred to as “fiat”, bitcoin will be more similar to gold coins. Its value will increase over time, because there is not enough of it. In addition, over time its amount will decrease due to the fact that some people will lose passwords to their digital wallets and nobody will be able to use this digital money for the second time.
Bitcoin is even better than gold. The theoretical maximum number of BTC tokens is 21 million. However, over time the reward for miners for extracting bitcoin decreases. In addition, the computers that extract it have to perform more and more calculations in order to get the same amount of BTC. The result is that miners do not want to extract bitcoins when it is cheap. On the other hand, gold is still mined, so the amount of gold is slowly increasing. In addition, gold is mined at the same time as other metal ores are mined and scrap is recovered.
The situation is completely different with ordinary fiat money. The central banks of all countries print all the time, causing a fall in the value of money. This process is very slow, so we do not see it. I think that once people understand that BTC stores value perfectly in time, it will become a natural way to save money. It is created for this, because there is not much of it, it cannot be multiplied, it cannot be destroyed and it does not need to be buried in the garden.
The bankruptcy of Venezuela has shown how geopolitical events can influence the popularity of the cryptocurrency. Inflation has reached an unimaginable scale. Within a few months Venezuelan Bolivar became a paper that is worth nothing. As a result the citizens of this country began to buy bitcoin on a mass scale. It resulted in the increase in its price.
Imagine that the French are starting to buy BTC on a massive scale to protest against Macron’s government policy. This information is not sucked out of the finger. This is one of the demands of Yellow Vests organization. They threatened to start withdrawing money from banks and convert it into BTC. If it would happen it could cause great crisis, because fractional reserve banking will not withstand such an attack on deposits and giant bank run will paralyse French economy. On the other hand, bitcoin will become fashionable, which will cause a significant increase in its price. Such scenarios can be realized in 2019 several. Be vigilant and buy when the blood is pouring.
TAGS: bitcoin, bank run, Yellow Vest,
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