People purchase bitcoin because it’s the system of money, which corresponds over how people have exchanged its value for our history. Technologically, the system is totally based on the mathematical formulae & straight-forward record and verification system. Implications are quite spectacular: now you can trust the exchanging value with other person and institution straight, even though you do not know them. But, you can make the process simple by visiting howtobuyabitcoin.net.
In terms of the values, crypto system is natural, mere human invention, and based on concepts of fairness and freedom. Its one most authentic type of money that anyone has had as value was totally based on memory. This is characterized like set out below.
- Allows value to get exchanged straight between 2 parties without bank middlemen, and instantaneously and at a low rate.
- Based on PV money (value that exists now, and not tied to required future creation).
The better description than term crypto currencies will be honest money. The money system is much more than only exchanging value; this is about the values. Crypto system is the digital technology for paper money’s and banking analogue technology. Potential, combination of the value and values, this new system unlocks is tough to overstate.
Fractional reserve banking solution is dishonest: and bankers can tell you your money is safely in bank and, they’re lending this out to others. Also, they can tell you it’s your money whereas, legally, this belongs to bank and they will do anything they want.
Why’s bitcoin much superior to some other currencies?
Bitcoin is the superior product to the nation state currency as well as fractional reserve banking solution, for the given reasons:
- Highly convenient (transact directly and cuts out bank or middlemen).
- Lower cost (the transaction costs are lower than the bank transfers)
- Higher alignment with better human values.
- Fixed supply.
Crypto system is the digital technology.
Why is the limited supply so important for the currency?
The currency that doesn’t have any limited supply is actually subject to inflation. And inflation is just one way of measuring the reduction in buying power. Its better called Theft Index and essentially is the value transfer from the holders of the nation state currencies over debtors. Generally, it happens slowly at a time, thus you do not notice any missing money and do not freak out.