Digital Currency - Crypto - Is it the next big hype bustup!
April 04, 2018Digital currency can be defined as an Internet-based form of currency or medium of exchange distinct from physical (such as banknotes and coins) that exhibits properties similar to physical currencies, but allows for instantaneous transactions and borderless transfer-of-ownership.
The current FIAT banking system :The global monetary system is what’s called a Fiat system in which money is a storage medium for purchasing power and a substitute for barter. Each dollar bill, euro, yen, gold ingot, or whatever currency you choose enables you to buy things as the need or want arises, thus making the barter system (trading one service or product for another) mostly obsolete.
Most of the world’s money is called fiat money, meaning it is accepted as money because a government says that it’s legal tender, and the public has enough confidence and faith in the money’s ability to serve as a storage medium for purchasing power.
A fiat system is based on a government’s mandate that the paper currency it prints is legal tender for making financial transactions. Legal tender means that the money is backed by the full faith and credit of the government that issues it. In other words, the government promises to be good for it.
Fiat money is the opposite of commodity money, which is money that’s based on a valuable commodity, a method of valuation that was used in the past. At times, the commodity itself actually was used as money. For instance, the use of gold, grain, and even furs and other animal products as commodity money preceded the current fiat system.
So popular belief is that the FIAT system will collapse as it has no real value. But then what is the difference between cryptocurrency and FIAT currency. Not much...one is electronic and the other is paper.
The Crypto Currency Frenzy feels just like the beginning of the wild wild west times when the Internet emerged as the new paradigm of economies. Remember that when you could just spend millions on sites and no one thought you had to actually turn a profit. Well what happened? We had the big huge dot.com bust up in late 1999 2000.
So the World Banking Masters are not stupid in any way. Although there is little doubt the FIAT system will collapse but not before the WBM's have a system in play to their benefit. Real value will have to come back into play within the new currency system globally. But what will it look like
Have you asked what happens if there is no power to generate digital currency...at least with paper or coins or stones or fish or leaves we have a method to trade. If entire grids go down what happens to your digital currency.
And with the current state of easy network hackability, crypto currency heists will make million dollar robberies look like baby play.
Add quantum computering to the mix and nothing is secure and these bust up babies can break anything at lightening speed.
Blockchain, well all the big kids are playing together to roll things out?? But will they succeed?? Maybe, but Maybe not because there are big ripples in this new game to iron out. So enjoy the HYPE and the potential cash cow while it lasts. My money is on real value currency making a comeback as ultimately it is the tangible we all require from our CyberSpace adventures in this linear time dependant world.