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Title: Bitcoin: What You Need to Know Post by: PlusCoinINK on January 11, 2018, 01:58:19 AM Is It An Asset of Value Like a DaVinci or Gold?
No, it is digital code (“bits”) which is transferred from one owner’s computer to another. Bitcoins, like all currencies, are not backed by any tangible asset of value. Like dollars, euros and pounds, bitcoin is “fiat money” established by a government or other entity as a means to facilitate trading in goods and services (the word fiat is derived from the Latin, “let it be done”). Currency Exchange Rates Need Stability Consumers rely on collective trust in agreeing to exchange one currency for another. Who Would Trust Bitcoins Rather Than U.S. Dollars or Gold? 1. People who have no faith in the ability of central banks to avoid hyper-inflation. 2. People who need to transact in secret, avoiding the ability of all governments to monitor them. Source: https://www.investopedia.com/advisor-network/articles/bitcoin-what-you-need-know/ Title: Re: Bitcoin: What You Need to Know Post by: 01BTC on January 29, 2018, 10:10:46 AM Is It An Asset of Value Like a DaVinci or Gold? No, it is digital code (“bits”) which is transferred from one owner’s computer to another. Bitcoins, like all currencies, are not backed by any tangible asset of value. Like dollars, euros and pounds, bitcoin is “fiat money” established by a government or other entity as a means to facilitate trading in goods and services (the word fiat is derived from the Latin, “let it be done”). Currency Exchange Rates Need Stability Consumers rely on collective trust in agreeing to exchange one currency for another. Who Would Trust Bitcoins Rather Than U.S. Dollars or Gold? 1. People who have no faith in the ability of central banks to avoid hyper-inflation. 2. People who need to transact in secret, avoiding the ability of all governments to monitor them. Source: https://www.investopedia.com/advisor-network/articles/bitcoin-what-you-need-know/ This is definitely the future of our digital payments and banks should get into this game sooner then later ;) Title: Re: Bitcoin: What You Need to Know Post by: mOgliE on January 29, 2018, 10:26:08 AM Hi,
I would add a few things here.. 1- About the potential of bitcoin: such a digital currency potentially allow people to get rid of any financial authority... And that's really great if you consider the current behaviour of most banks. 2- The bitcoin is a solution, not a miracle. First, there are some technical limitations at the moment (the network is not large enough to ensure all transactions to be prosecuted quickly) and some issues about the "economy of bitcoin", just because prices can double within a year... Then, how can you set a fixed price for daily shopping? Bitcoin is great, I think it is important to make the community grow BUT we must also be aware of such limitations, to be able to work on it! |