Cryptocurrency:The Future of Money and Finance
The main difference between cryptocurrency and fiat currency (USD,EURO etc) is that one of them is backed by the government, and the other is not. Fiat currency is backed by a central government, it is considered legal tender, and is the money we typically use to buy goods and services and pay our taxes. Cryptocurrency, on the other hand, is decentralized, which means it is not backed by a central government or bank. While fiat currency varies from country to country, cryptocurrency is global.
Cryptocurrency VS Govt.
Cryptocurrency is on the cutting edge of the divide between liberty and the State, between a centralized coercive order and a decentralized voluntary one, and that divide here comes in that most important matter of money. Modern fiat currency, like the dollars in your pocket and bank accounts, is quintessentially a creature of the State. We use money every day, but we rarely appreciate its power and its flaws. It's a tool that has been at the center of human progress, and as we build bigger and tackle complex problems, we're going to need the best tools available. - We have a global economy. We're going to need a global digital currency. - Cryptocurrency is gonna be a great democratizing force for the world, because it's gonna level the playing field and allow anybody with a cell phone to access financial services. - This is going to transform how we think about a real global economy.
By using central banks to issue or destroy money, and by maintaining economic influence through monetary policy, governments essentially control the flow of money. They can intentionally increase or restrict how much money circulates in an economy. Therefore, the existence of independent currencies means a significant loss of control for the government. - So the current systems are very centralized, so many people in the world today who have a cell phone but don't have access to any financial services. What's really powerful about cryptocurrency is that it lets anybody, if you just have a smartphone and internet connection, participate in the global economy. -
Advantages of Cryptocurrency
With digital currency and block chain, it's actually more similar to cash, yet again, where I can send something directly to somebody else and I don't necessarily have to go through middlemen like a bank or a credit card company. Whereas, if you have lots of different individual nodes, hard drives, and phones, and so on, that have some money, they're probably not all gonna fail at the same time. - So you no longer need the middlemen to keep track of internal ledger. All these computers are writing everything down for you. - That network effect makes it unbreakable. - The technology makes us richer and wealthier, because you need less time, or less money, or less effort to get something done.
That's not just sending money back and forth. That means employ each other or fund each other. - A more global economy is important, because there is talent everywhere, but opportunity is not evenly distributed. - In a world where this technology is fully adapted, it won't matter what country you're born in. All that will matter is that you have a mobile phone and internet connection and you have skills and knowledge to learn and you can contribute to the global economy. You can benefit from the world, and the world can benefit from you. It opens up opportunities for everybody. I think cryptocurrencies are gonna be as impactful to humanity as the internet has been. - Digital currency and blockchain can bind us in ways that we wouldn't be bound before.
