What is the actual true value of Bitcoin and cryptocurrencies like Ether, Litecoin, etc?
What is the true value of a traditional fiat currency like the US Dollar, Japanese Yen, etc?
People talk about how Bitcoin is virtual so it doesn’t really exist, but does software exist? Let’s delve into this for some real enlightenment, shall we?
Bitcoin and Cryptocurrencies Have Real Value
Well, it take a LOT of brain power, electricity, hardware, and other essentials like a physical plant to place the machines and run and tend to them.
This notion that is out there, and it IS out there because I see people parroting it all over the place, that Bitcoin and cryptocurrency aren’t real.
What makes them NOT real?
That you can’t hold a physical coin in your hand?
Is Microsoft Word real?
Is Linux real?
Software is all virtual, but it’s still real.
I realize that when one looks at a big piece of software like a popular operating system, like Microsoft Windows or Apple’s MacOS, or IOS in the case of iPhones or iPads, they see them as real because you can hold them and interact with them, but what you are holding and interacting with is the hardware, the computer or tablet or phone.
We are interacting with the things IN or ON the computers, are we not? When I manipulate a folder on my desktop or pull out an mp3 to listen to it or create a digital piece of art in my Affinity Designer or Photo program, am I not interacting with a real thing?
People need to stop selectively choosing to believe what is real and what is not.
Bitcoin and cryptocurrency are every bit as real as Windows, or MacOS or anything that they interact with on a computer or digital device.
Crypto is real! You can buy it.
In this InfoWars clip, John Mcafee talks about how real a Bitcoin is because he knows what it takes to create one, as opposed to the ink and paper that so called ‘real” money costs.
He knows what the true minimum cost of the resources are to create one Bitcoin, and this same formula holds true for any mined cryptocurrency.
It takes expensive computer hardware, a lot of power, people to assemble and administer the hardware, set up the mining software and monitor the whole operation. It takes MONEY just to get started!
I know that Info Wars is controversial and many don’t take it seriously, but it is merely here because McAfee gives the interview and it’s what he’s saying that is important.
Another of my more suspicious friends has stated that why would he believe Mcafee since John McAfee himself is somewhat of a loose cannon and lives his life in a manner that would make anything he says suspect.
I believe that’s a simplistic way to look at things, considering his considerable achievements in antivirus and internet security, and now his foray into Bitcoin mining and cryptocurrency advocacy.
The real issue here is the FUD that the money masters in government and their central bank buddies are spreading, because they FEAR the loss of control of…. MONEY.
You no longer need a bank when everyone is their own bank because they control their own money and no longer need that middleman network to transfer or look after the money.
You can keep yours in an exchange, which is like a bank, or even in your own hardware device, which is like a vault that you can cary in your pocket.
What Makes fiat Money Valuable?
Fiat money like the US Dollar and the British Pound or any fiat currency is valuable because enough people have full faith in it.
The faith is that other people also trust in it enough to accept it for payment of all debts, public and private.
The minimum value might be whatever the government that issues it says that it is, but we all know about inflation and how printing more of these instruments weakens their value, and there is no ultimate ceiling to how many can be created, and they ARE created out of thin air when the government tells the national mints to create more.
The value might be impacted by how much gold the government that parents the currency in question holds, or that government’s military power or world status is, but ultimately the fiat currencies are just paper and ink, or cheap industrial metals pressed into coins that are ironically worth more than their face value but still worthless to the general populace for anything but simple exchange that makes barter undesirable.
So, paper money is worthless beyond the promise, and ironically the cheaper face value coins are worth more than face value in an industrial sense.
How is this actually better in the long run than a virtual currency that has rarity built into the system and takes a lot of brainpower, real power, and genius to create?
John Mcafee and others who get it have been saying that the demand in Bitcoin and other cryptocurrencies is worldwide, and it’s not the same as a bubble in the stock market. There is volatility, but the overall value keeps rising.
Just look at the overall trend, if you start on the bottom left and draw a line to the top right, it’s a diagonal line from left to right that keeps rising!
The value of this asset, this currency that can act as a currency but also is a massive store of wealth, is nowhere near it’s potential yet.
It’s Distributed, Man
Bitcoin and cryptocurrencies like Litecoin and Ether are also distributed, in that their ledger is distributed all over the world, so that you can’t destroy the ledger or the record, or anyone’s wealth as it is stored in the ledger.
The easily duplicated and propagated nature of anything digital, whether it be an image file or a document, or even a cryptocurrency ledger, makes them so very hard to destroy, since anyone can make a copy and distribute them as many times as one wants.
Just ask many people out there who have lost control of scandalous photos or videos that have been digitized and distributed. You can’t get every copy.
So when people talk about outlawing digital currencies or taking them out with an EMP blast, they are really talking folly. The entire civilization would have to go with them.
To circle back and conclude this, Bitcoin and cryptocurrency are as real as any software that we all agree are real products that many people, myself included, make livings creating, testing, and deploying.
I come from the software industry and I can assure you that code and all that goes into it is real. Everything from creating use cases and documentation, coding, testing, fixing, documenting, bug lifecycle, automation testing, ALL adds up to a LOT of work and the product, I ASSURE you, is REAL.
So when I go into an online cryptocurrency exchange and buy some cryptocurrency, I am buying something that is real.
Maybe you should too.