History Of Money And Why Crypto Is Just An Evolution Of Money
I think money has proven itself to not be sustainable. It is not actually back by anything, when people are talking about cryptocurrency being imaginary money or digital money they don’t actually know the story of the history of money from the early ages the shells on the beach will be valuable into inland who had rock and stones and so there is an exchange there because of the perceived value of each of these token. Then we moved into a bartering system were you will be given for example a bunch of bananas exchange for a chicken the exchanged thing was an exchange of value. From there we moved into metals where coins were developed and where made of electrum, an alloy of silver and gold. Each one with its scarcity making more it valuable and a couple of hundreds years ago the coins became too burdensome to carry around and so the paper money came about, as a promise that was back by gold that was held in storage.
That was our monetary system for quite a while and then August 15 1971 Nixon (the president of America) at the time, announced that the U.S dollar would no longer be backed by gold and in early 1972 Congress passed public law which gave formal approval to the 1971 declaration. From that time there’s literally no physical value that is backing the monetary system that’s in our world today. So don’t you think its a little hypocritical of them to come out and accused bitcoin and cryptocurrencies of having out no value.
We are now in a system that has a thing called ‘fractional lending’ and in Australia, it is called a ‘capital adequacy requirement.’ Fractional lending is a thing, where if you deposit a $100 into your bank account, the bank is required to hold only $10 and it is able to lend out $90.
If I am the person who borrows the $90 I can then go to my bank put that $90 into my account and the bank is only required to hold $9 and can loan out $81. So this $100 became $190 plus and another $81 so on and so on so again, we seeing that money is made out of nothing and is back by nothing which is why we consider it as an unsustainable system.
Which is were bitcoin and cryptocurrencies comes in because although we have nothing in a digital currency what we do have is we have perceived value and consensus so each of the coins in the cryptocurrency world has a perceived value, what bitcoin offers us is security, liberty, autonomy, and privacy and this for some people makes it priceless which will push the price up so as the price of bitcoin goes up people still believe in the bitcoins value and the consensus part of the equation is that people buying and selling bitcoin base on their belief in the value. So you got perceive value and consensus and those things make up the price of cryptocurrency.
So as of today we have over 1600 different cryptocurrencies in the space and our global market cap is sitting at $331 Billion at time of writing. Global market cap is something that keeps fluctuating as we are still in the innovator stage and as adoption grows so does the stability of the market. One thing to point out is that January 2017 bitcoin or cryptocurrency had a global market cap of $17 Billion from $17 Billion to over $300 Billion is pretty great.. It did grow from $17BN to $830BN in 2017 but had a correction early 2018 and came back down but still comparative from last year we are miles ahead.
Take the leap to understand what cryptocurrency is all about. Check out our MASTERCLASS because the future of finance is changing and you can be a step ahead of the game.
The process of getting started with Bitcoins is no longer time consuming or scary. We show you the tools, steps and actions you need to take to become Bitcoin beginner.