How digital money will be smarter+
Get rich quick who depends on this dream, was most recently with digital currencies a good choice. A Bitcoin, purchased a year ago for 500USD, listed today on the relevant exchanges with courses to 2500 USD. Still sudden, ether, the monetary unit of the Ethereum network, has jumped since the beginning of the year from less than 10 to more than 300 USD. Fabulous returns, still flavored with the feeling to belong to the digital avant-garde.
The stupid fact: to enjoy the wealth you must change the digital money rule yet again in euros or dollars. Because his usefulness as a means of payment is sorely limited.
For one, because few dealers in the real world, whether analog or digital, accept at all Bitcoin against goods - and that too many are again bailed out. On the other hand but also because with increasing complexity of to be invoked in any transaction data collection of computational cost and the time needed to rise. To confirm a payment, it may take hours or even days.
And last but not least, because the crazy ups and downs makes impossible a calculation of prices. Ethereum suffered on Wednesday a "Flash crash", collapsed in the ether price for a short time almost to zero, recovered but then quickly again. Not to mention the numerous cases of fraud and failures in the young history of the Bitcoin.
Ever more successful, more useless
The paradox: The more successful the cryptocurrency as digital gold - you could also say as a purely speculative investment - are, the less they are suitable as an alternative to conventional money in everyday life. The prices must be fairly stable, to estimate what the purchase of rolls, the fuel stop or even the purchase mean for the budget. Ensure the central banks in euros or dollars.
Instead, the money supply keep Bitcoin, Ethereum and co.. This is so wanted by their creators as conscious counter-model to a central instance, which adjusts the money supply of the demand and the market in equilibrium holds.
The standing behind Bitcoin Blockchain database, for example, is so designed that never more than 21 million Bitcoins can be created. More than 16 million in circulation is up-to-date, the creation of money is getting slower - reason enough for that Bitcoins will be more expensive. Set, flexible price: the opposite of the established model.
I had no clue, but till recently I haven't had any desire to learn more then I found Steemit and it has changed what I want to learn.
16 million Bitcoins in circulation...wow!! Nice article!
nice posts @steemigonzales