Monday, October 7, 2013

Why I can't stop thinking about Bitcoin

Its October 7, 2013. I want to talk about Bitcoin again.
I won't explain how it works here, since perhaps very soon everyone will know pretty good picture about Bitcoin.

Today there's no such topic on the Internet which inspires me more than Bitcoin.

Why do I like Bitcoin and think that it deserves so much attention?

  1. Its protocols are open-source and transparent, everyone can track moneyflow happening in the world. I always hated counterfeiting, and thought that governments throughout the world one day will create electronic money and will prohibit printing the paper for giving value to the money.
  2. Okay, if governments would create their e-money, then in this case we still have a problem with trust: since we can't be sure that government aren't unequally adding more money on the accounts of its privileged citizens. That's why I think the Bitcoin is goes to win this battle, because the Bitcoin's amount won't depend from its currency regulators.
  3. First two points about Bitcoin I believe sets the new precedent about Bitcoin's perspectives, and I believe that Bitcoin pretty much has huge chances to become a default currency everywhere. Right now not everybody understands it, but I think that its the case where I can trust IT experts and mathematical models.
    1. So, right now the price of bitcoin is $136 according to http://bitcoin.clarkmoody.com and the Bitcoin economy has around 11 million bitcoins in circulation. If you'll multiply them on their costs in usd (11 million multiplied on $136) you will get the amount around $1,5 billion which represents the current value of bitcoin economy. I think that $1,5 billion dollars is pretty low amount for such perspective currency, and this number will definitely grow AT LEAST 50 times larger than you see it right now.
I love Bitcoin, because it fights with everything I hate about regular money, and I mention here only few reasons:

  • Unfair transfer fees for fiat money transfer methods. Regular money haven't created to be teleported. Bitcoins are.
  • Its relatively easy to counterfeit with paper money. That gives too much power to Mafia, who's handling that business. Governments withdraw hunderds millions of dollars in counterfeit money from economy every year, and there's yet too much dollars and other paper pieces which isn't even really valid.
  • Its easier than anything to print more money when you need it if you have an authority to do that. That's what I call cheating. As a citizen I don't feel that I deserve that. I suppose there's no such fiat currency on the earth that haven't printed any extra money. Nobody really knows yet, how much % of inflation exactly that amounts of "official counterfeiters" eats money from your budget.
  • Credits. Loans are stealing people's lives. And Federal Reserve again printing even more money than before. 

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