Turbulant Crypto 2018
Financial Times journalist Jemima Kelly, a long time critic of cryptocurrencies, wrote: "Under the laws of supply and demand: something that can be infinitely replicated must lack long-term value. Anyone trying to market such a thing — however many new bells and whistles they put on it — is essentially trying to sell hot air."
An open ended statement, how I see this in reality is you have twenty one thousand bitcoin BTC21 000 000.00000000 now that does not sound like a lot to place a cap on the market. Look at the decimal structure then consider value, slow movement low value, high movement incremental value moving to higher value smaller decimal value required.
We need to think of value, purchase a vehicle at Fiat currency 10 000 for BTC 1.00000000
When BTC goes lower in value you need more example BTC 10.00000000 for Fiat currency 10000.
However high demand within crypto may swing to BTC 0.00010000 to obtain Fiat currency 10000 for same vehicle.
Cryptocurrency the higher the value less will be required to move, lower values should attract lower costs involved with time.
Now we look at Fiat currency, government decides to print 21 Million new notes to release into a dwindling economy, cost involved is printing and distribution, value may be negative, it will be touted as a positive move the country has more available to spend.
The difference between the two is negligible, over and above one being tangible the other being digital zeros and ones. Buying the same vehicle with Fiat currency you see an advert in the newspaper at 10 thousand, overnight the value of the Fiat currency hits rock bottom, on arriving to purchase you have to outlay fifteen thousand notes instead of ten thousand notes.
Whether you approach the buyer with a card or wheel-barrow full of notes, the bottom line is much the same, Fiat currency may be physically touched, have a smell, it's value only holds true if backed by good governance, where does the difference come into effect when relating to digital money.
Banking and governments are placing new regulatory structures, faster, secure, more efficient systems are being implemented. Well structured digital money, should in effect do away with card systems, using codes from phones most people have today, cut out costs in faster transaction times, this does not mean no costs are involved.
Costs will be ongoing, people world-wide clearing blockchain entries (miners) need to be paid for electricity consumption, time, hardware, this is where governments and banking fraternity as I see it will have to learn to open up and accept this new concept.
If everyone starts opening small private currencies, without good projects in mind to better the life of people, get off the blockchain! World is looking for fast inexpensive ways to transact that are secure.
IMHO Crypto is here to stay, some good reading material everyone interested in crypto should read:
Source PDF
As a crypto enthusiast this is my opinion only, I write/share on the topic out of interest, this is not advice to purchase without thorough research on your part.
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