Oh boy - it´s not easy for me to get into the world of cryptos.
Not only it´s a new subject, it is so different from all what I´ve learned up to now.
Crypto means the technology for encrypting the code of the blockchain.
But for me it´s a secret language from people hidden to the civilization or - better - an alien language.
But one has to accept the change of time. So I do.
Perhaps it`ll be easier to understand when I primarly knew the logic of money.
What is money?
Of course, it´s this piece of paper named note or this clad metal named coin. In real the note is out auf cotton.
And there are cotton-notes with 5€, 10€, 20€, 50€, 100€, 200€ and 500€ printed on the surface.
That´s puzzling; all notes consist out of the same material but have very different values.
Try to explain this to a child.
Who has the right to give value to the note? And how many notes and coins have to be printed - who knows?
It´s the bank! Better, it´s the banking system and on the top the central bank.
And our government let them doing so. Perhaps it´s better this way, imagine politicians should decide how many money has to circulate in the world; wouldn´t it be horrific?
When I was young, a long time ago, I didn´t ask why to pay 0,05€ for a biscuit. I accepted that the baker wrote this price on the label. He could has written any price he wanted - I thought.
I didn´t know that there is something like the invisible hand, named "market".
I got my pocket money, which came from my dad (or was it my mother?) and I bought candies, biscuits and toys.
All of them had prices and they weren´t fixed.
I recognized that the prices changed from one year to another, but I didn´t ask why.
At school the teachers told us, that this is called "inflation" and it is due to higher prices for resources, workers and taxes.
Why is a worker asking a higher wage, if all other prices are stable?
Even today the unions are fighting for higher wages for the employees. They´re fighting every year for higher wages.
There is something going wrong! It´s a bit fishy.
If you think of all I mentioned and you have in mind that every bank - really every bank - can print money - or add some digits to your account - by creating a credit, than we have to accept that the world of money is fraudulent.
In fact, the banking system, the government, the big players, the homeowners, the consumer credit takers, and so on have created a vast number of money; the majority exists only in digital zeros and ones and only a very small amount is circulating physically. The amount of money, most of it in debts, has risen out of our solar system.
And we have to trust it?
Do you believe that your notes in your wallet have really the value which is printed on the surface? Do you?
To be honest: this system goes on till the last one will have recognized that we were fooled and betrayed.
Coming back to the beginning of this post: I want to understand what cryptomoney is in comparison with fiat money.
Fiat money is a ponzi scheeme, it is a big fraud
-> the basis of bitcoin is the blockchain; the technology is open source, everybody can check itFiat money is controlled by the central banking system and they can manipulate it in every way
-> the blockchain is decentralised; if there is manipulation everybody will recognize itIn Europe the Euro is the one and unique money the state accepts for taxes, we have no choice
-> cryptomoney is freethere is no limitation of the amount of euros or dollars
-> the bitcoin is limited to 21 mio coins (but other coins are not!)
In this comparison the cryptocurrency is preferable to the fiat money!
Today we have got three alternatives to hold money:
Fiat money
Cryptocurrency
Precious metals
Out those three possibilities fiat money is the worst.
That´s the motivation for me to learn more about cryptocurrency.