How Currency Works: The State of Money

This informative article, How Currency Works, is a fascinating overview on the state of money – both fiat and crypto. The article begins:

In some circles, it’s clear why the invention of Bitcoin is fascinating, and why it will change how currency works. It’s money you can teleport anywhere in the world without anyone’s permission and only tiny fees. But there are plenty of people who think the volatility of bitcoins and the lack of commodity or governmental backing will result in only small changes to the status quo for the foreseeable future. Those people are wrong.

Bitcoin’s technology has given us the tools to have perfectly stable currency that the world will choose to use instead of bank-issued currencies. Central bank currencies have given us deflation and slow growth in most of the world. They’ve disappeared wealth during inflationary currency crises in other parts of the world. They’ve caused economic distress everywhere. Those currencies were better than the alternatives, but we now have the technology to prevent this from ever happening again.

One fascinating service is companies like Bitreserve and Coinapult Locks that offer to guarantee the value of your bitcoins. This guaranteed value can make effectively make dollars a part of the blockchain.

Dollars that you can teleport anywhere in the world without anyone’s permission and only tiny fees. Instead of dollars, those promises could be made with yuan, gold, or anything that people can agree on prices for. 

Click through to read the full article at LogicalGrackle.