Bitcoin is Real Money...it's actually more money than most fiat currencies that are in the market
Whenever I get into a discussion about bitcoin and cryptocurrency with ardent fiat supporters the first thing they point out is how bitcoin is not "real money".
Given it does have a few limitations but if we look at the characteristics of real money, Bitcoin fairs pretty well, as a matter of fact, better than most fiat currencies.
Here's why:
Scarcity: A limited supply of a currency gives it value. Bitcoin’s supply is limited to 21 million while fiat has no cap.
Divisibility: Dividing any currency into smaller denominations is important for its economic use. Bitcoin and fiat both possess this quality.
Transportability: The ability to easily send and receive money is an important factor in a currency’s practical application. Contrary to fiat currencies, bitcoin can be sent anywhere and to anyone in the world in a matter of minutes (for a fee).
Durability/Security: A currency needs to be strong enough to withstand any loss of value. Thankfully bitcoin used blockchain technology to operate which is much stronger than any fiat currency that ever existed.
Acceptability: For any currency to be useful it should be accepted by the people. This should not be a problem for bitcoin thanks to its ~100 million and growing users worldwide.
Uniformity: Currency needs to stay the same despite where it is used and for what purposes, this increases trust and recognition for the currency. This cannot be more true for bitcoin as it is a digital currency, which means it is the same everywhere no matter who is using it.
Submitted July 29, 2021 at 09:01PM by primalfabric https://ift.tt/3yidb4k
Comments
Post a Comment