With a click, literally they can generate new millions of euros on a computer that devalue the purchasing power of people.Īnd it is that, as we already explained, Bitcoin has better properties than fiat money. This leaves the fate of millions of people to the whim of a few. The currencies issued by central banks are necessary so that they can apply, in an opaque way, specific economic policies. Just look back at what has happened during the XNUMXst century: financial crises, corralitos, uncontrolled inflation, etc. It doesn't matter which time frame of the story you choose, this model has proven to fail time and time again. They can print and mint as much as they want and when they want. Second, of create coins and bills on demand and the need to have physical and electronic money. First of regulate and control the monetary policy of an economy. But it is other entities, such as the central banks and the mint houses (CECA), which are in charge of everything. They are endorsed and certified only by their issuing entities.Ĭurrently, it is governments, through imposed laws, who determine what type of money is legal tender. Since 1971 they are not backed by gold value. Money usually serves as a unit of account and store of value among other characteristics.īut… wait! If a currency is not accepted as a means of payment, no matter how great it is as a unit of account, and all you want… is it worth anything? It is because of that the value of money is not linked to its acceptance, but it is directly related.Įl fiat money (name of the official fiat currency issued by a government, such as euros or dollars) as we know it today, are nothing more than bills and coins without their own value. But, how much is a Bitcoin worth? Why does its price go up and down so many times a day? Who determines its value? How safe is that price? Is it a scam, ponzi or strange mechanism to steal my money? money? Bitcoin as moneyĪs we all know, money is what is accepted as a means of payment for a good or service. It is not issued by any government or company (despite the fact that it is increasingly supported by them) and it is considered legal tender by very few countries to date (although it is beginning to fit into existing legal frameworks, such as the sentence that determines to the Bitcoin exempt from VAT throughout Europeor the Bitcoin Law that made it legal tender in El Salvador).īitcoin is powerful and a masterpiece of engineering (or as Bill Gates says of him: "a technological feat"). As we have explained, Bitcoin is a distributed financial system, created in 2009 by a programmer under the pseudonym of Satoshi Nakamoto.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |