Bitcoin a world currency? Following the Gresham's Law, this can never happen. Watch this video to find out why. There is also a contest at the end of this video.
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Follow me on twitter: http://twitter.com/BillionairePal
Follow me on steemit: https://steemit.com/@billionairepal
And read the blog where I test the limits of human capabilities: http://nolimits.co
Buy the book "Ready, Set, Go!" that I have co-authored with Brian Tracy:
E-Book: https://www.amazon.com/Ready-Set-Special-Entrepreneurs-Professionals-ebook/dp/B078WZXJDW/
Hardcover: https://www.amazon.com/Ready-Set-Go-Nick-Nanton/dp/0999171402/
Get free chapter of my upcoming book about billionaire thinking: http://TheBillionDollarSecret.com
VIDEO TRANSCRIPTION
Hi! Today from the Paradise Island in the Bahamas.
Today I will tell you why Bitcoin will never become the world means of payment.
Stay with me till the of this video. We will have a contest and something to win.
[Music]
The title of this video may come surprising to my audience - to the people who know that I'm an early Bitcoin investor.
Bitcoin supporter and true cryptocurrency believer.
But nevertheless I don't believe Bitcoin will become the dominating currency in the sense of being the global medium of exchange.
So, I'll explain to you why it's my conviction and meanwhile you can observe the crypto sharks behind me.
And if they are gonna attack me and maybe eat me for breakfast.
But you should know about Gresham's law.
Gresham's law is a financial law stating that a bad currency pushes a good currency out of the market. What does it mean?
Imagine you have two currencies: A and B.
And you hold in both of these currencies, let's say, $100,000.
In both of these currencies. A and B.
The currency A is a bad currency, which means it falls in value with every day... maybe every year. But generally it depreciates.
It's getting less in value.
And the currency B is a good currency meaning it appreciates in value.
Meaning it gains in value every year, every day. On the long term, on the middle term.
It gains in value.
Now! Imagine you want now to buy a car for let's say $50,000.
Which of these currencies would you use to buy the car?
Of course, the currency A! The bad currency. Why?
Because you want to keep the better currency - the currency that gains in value and give away the currency that depreciates as quickly as possible.
That's why, by the way, the central banks are lowering the interest rates as much as possible.
Because they want people to give away, to use the currency to speed up the throughput of the currency in the economy.
It just supports the economy.
So, it means for a private person, for a company, for an institution...
It just makes sense. It makes economic sense to give away or to use the bad currency while purchasing services, goods and to keep the good currency
in your savings account or just not to touch it because it appreciates.
So, in the middle term, in the long term you're just better off with that strategy.
And when everybody does it and everybody thinks rationally, everybody thinks economically,
then in the effect the good currency is pushed out from the usage in the economy by the bad currency.
Applying this to, let's say, crypto world or applying this to Bitcoin...
It would mean Bitcoin is a really good currency because you have a limited supply. You can't inflate the currency. You can't inflate Bitcoin.
There will be only 21,000,000 Bitcoins in existence any time in the future. Maximum.
So, it means it will long term, middle term, long term it will always gain in value.
It's a good, a very good currency.
But there will be currencies that aren't that good. That are losing in value.
One of the currencies is of course dollar or other fiat currencies but even if they go cashless, if they will be like electronic currency...
The goal and the strategy of governments is to inflate the currency in order to have the economy go around; in order to stimulate the economy.
So, these currencies will dominate in trade. These currencies willl be used in trade, in payments and Bitcoin will be used as store of value.
So, if I say I don't believe Bitcoin will become the world currency, the world medium of payment it doesn't mean it will be worthless.
It doesn't mean it will lose it's value. Not at all.
It means that Bitcoin will be used as storage of value and other currencies either be it a cryptocurrency or maybe some fiat currency
Or maybe government based digital money will be used in trade, in exchange, in payments.
So, as a consequence the success of Bitcoin, meaning the rising value of Bitcoin will at the same time become the reason
for Bitcoin not becoming the world currency.
It will paradoxically become it's kind of limitation.
I see you liked this video. Give me a thumb up, subscribe below and don't forget to hit the bell button in order not to miss my other videos.
I invite you to comment on that video. What is your perspective? What are your thoughts? What is your experience in that topic?
Share this video with your friends, with your loved ones. One day they will thank you for that.
I talk here a lot about money. I talk here about cryptocurrencies, about my investments into cryptocurrencies.
I've been investing into the crypto space since the summer of 2015.
I'm a mathematician. I've studied cryptology so I know what I'm talking about.
I talk to also a lot about the thinking of the best entrepreneurs in the world.
How the self-made billionaires in the world think and act. These are the people I've met, I've interviewed and I write a book about them.
I also talk about how to do the impossible. These are my experiences from ultra-running and from other challenges that I've acomplished.
Now coming to the competition that I promised in the beginning of the video. Let's do the following:
Share this video on your Twitter, on your Facebook or another social media profiles and add a quote from that video or your comment to that video
Or invitation to watch that video and also, add your Byteball wallet address.
If you don't know what Byteball is, if you don't have a Byteball wallet, go to Byteball.org, download the wallet and add the Byteball wallet to your share.
Among the best shares, among the most creative, the most effective shares I'll choose several and I'll give away some Byteball bytes
to the authors of these shares.
So, if you liked this video, you will certainly like my other videos. I invite you to watch them.
Here you will find some of my best videos.
That's it from the Bahamas. I wish you a fantastic day.
Let's do something extraordinary today!
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