The only reason a $1 US bill holds that value is because as a collective we have all decided and agreed that its worth that much. It’s pretty much the same with cryptocurrency except it is digital and can fluctuate because we have the say instead of the government. We give the currency our trust that it is the amount that we say it is. Which is one of the main reasons, cryptocurrency is so volatile (moves up & down). With an actual physical $1 US bill, we have claimed that it will always be $1 even if the bill is crashing or raising in the digital world. So, say you go online and see that $1 in the financial market is worth $1.50 and you go to a store and buy something for $1.50 and you hand them $1, the cashier would most likely say, “Hey, you don’t have enough, you’re .50 cent short.” But wait..the financial market online says that my dollar is worth $1.50 but our world doesn’t work like that. Most people would think you are crazy if you said your dollar is worth $1.50. That’s one main difference between cryptocurrency and regular money. When you are invested in cryptocurrency, when the price goes up, it also goes up for everyone else to understand that you have that amount of money.

For example: Bitcoin was $110 in July of 2013 and the retail price of the Apple iPhone 5s was $199 - Obviously with that 1 Bitcoin that you had, you could not buy the Apple iPhone 5s, you didn’t have enough money. But, 3 months later, Bitcoin went up to $200 in October of 2013 and with that same amount of Bitcoin you had in July (Hopefully you held on to it) You could now purchase the Apple iPhone 5s.

Now with US money, it would be completely opposite, because you have a physical bill that we have associated with being a set price even if in the digital market it is going up. Say you have a $100 bill and you want to buy the iPhone 5s, again you can’t because it is $199 but, say the dollar goes up on the internet and now your $100 is worth $200, well you still wouldn’t be able to bring that $100 bill to the store and buy the Apple iPhone 5s. It just doesn’t work like that. Main reason Cryptocurrency is going to be the future, because we have a huge say in what our money is worth.