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Bitcoin vs US dollar – comparison. What will become the world reserve currency?
"There are two truly exhaustible resources in the world – time and bitcoin," says the author of Medium .
About Bitcoin (BTC)
Bitcoin is the ideal money and that's why :
- Interchangeable, 1 bitcoin = 1 bitcoin
- Durable, created forever
- Portable, it can be worn anywhere, even in your brain
- Divisible, in each BTC 100 million Satoshi
- Safe, it can not be faked
- The network is capable of processing 500,000 transactions per day
- Adapted for computer operations
BTC is a means of accumulation
Over time, it does not lose its value. The more people use money as a means of investing, the more the price will be in the short term. The hard currency does not lose its value and is not subject to inflation.
Means of exchange
If the asset is more expensive, at the same time it becomes more attractive as a means of payment. It is profitable for sellers to accept a promising currency, which causes trust.
Why not other crypto-currencies?
- None of them is 100% decentralized, and therefore safe.
- There are no other bitcoins.
- Ethereum is characterized by constant inflation and seeks to become fuel for decentralized applications. Even if successful, the cost of 1 ether is unknown.
- Ripple is a centralized network for banks. The founders / company can increase the issue at their own discretion.
- BCash is the hardcore bitcoin. Unsuccessful actors Roger Ver and Craig Wright can make any changes on their own. There is also a 51% risk of attack on the network.
- EOS is a centralized and weak network. It's not money.
- Stellar is centralized / weak. Like Ripple.
- Litecoin is not yet strong. It is used as a test network for future bitcoin developments.
- Monero declares itself as anonymous money, but its development is very centralized.
- IOTA is centralized. Works badly.
About US Dollar (USD)
Surprisingly, some of us know about bitcoin and other digital assets more than about fiat currencies. For comparison, we chose the US dollar, one of the most stable currencies, writes Ethereumworldnews .
Gold standard "canceled" by President Nixon
In his tweet, Anthony Pompliano, founder and partner of Morgan Creek Digital, wrote that the gold standard of the dollar was temporarily "canceled" as early as 1971:
"In 1971, Richard Nixon suspended the conversion of US dollars to gold. At the same time, he publicly stated that we can return to the gold standard. But they did not return. So why trust people and governments when you can trust math and code? "
But this notice can be found on the Federal Reserve website:
"Bonds of the Federal Reserve are not subject to redemption for gold, silver or any other commodity. The Federal Reserve bonds are not redeemed for gold since January 30, 1934, when Congress amended the 16th section of the Federal Reserve Act: "These bonds are obligations of the United States … They will be repaid in legal cash on demand at the United States Treasury Department , in Washington DC or in any federal reserve bank. " The bonds of the Federal Reserve are not extinguished by silver from the 1960s. "
As Anthony Pombriano noted, we must trust the code and the mathematics, which are evident in the lock-ups of different crypto currency , and do not trust banks and governments that purposely keep silent about the currency.
Eric Voorheis, CEO of ShapeShift, summed up :
"Bitcoin is a digital currency with a known and limited emission, without borders, no centralized group controls it. The US dollar is a digital currency with unlimited and unmarked emissions, bank bondage with difficulties of transfer across the border. "
What in the end?
- Bitcoin is a safe, transparent and reliable asset based on mathematics and decentralization. Each user can view the public registry and transaction history.
- Bitcoin brings a new form of money to the world, its code can be constantly improved to meet the new needs of a future civilization. BTC is at least a 10-fold improvement over currency and gold, it does not have a replacement, in time it will only get better.
- A citizen of any country can not get information about the currency issued by the government, in the case of the US dollar, money can not be exchanged for gold.
We can say with confidence that BTC is a better option than USD.
