Anons first Crypto. Post #8
I've been investigating cryptocurrency and the decentralized web since the start of May 2020. This blog is an avenue of documentation and expression of my experience.
Who controls it?
Crypto is;
Built upon decentralized networks therefore not controlled by a single representative body and is governed by algorithms and cryptographic parameters, the supply is controlled or scarce, ergo valuable.
Crypto is backed by our confidence in cryptography and blockchain technology.
Fiat is;
Controlled and issued by a countries government, for example in America it takes the form of $USD and is printed by the federal reserve, as we have seen recently, the supply is limitless, ergo worthless.
"There is enough cash in the financial system and there is an infinite amount at the federal reserve" - Bald guy from the fed on 60 minutes.
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FIAT is not backed by anything other then promises from the government and confidence in the consooomer, hence the consumer index. Essentially you can look at it as you, the end user 'controls' it. Because one of the simple beauties of cryptocurrency is the elimination of banks, you can store it securely and indefinitely yourself, there are many different options out there depending on what your priorities such as offline or 'cold' storage, maximum security, private p2p or incognito transactions as well as the emerging finance, credit and interest savings platforms . DeFi options are becoming stronger quickly meaning we have the ability to gain lines of credit thus leaving next to no need for the traditional banks other than to store FIAT.
Why does this matter?
Current Financial system;
Under the current system we are required to operate in FIAT whether it be for our day to day purchases or large scale transactions of currency such as for the purchase of property or business holdings, this is mainly due to tax purposes as we are currently forced to pay our taxes with FIAT and pay taxes on our crypto holdings. I'll let you make up your own mind on why its so important to the powers that be that this stays the case, however that is why crypto adoption is such an important matter to myself. Currently we require interaction with multiple levels of government and private institutions just to execute the most basic of monetary actions, all of which cost the user or give up the users currency to an institution or Governement and is contracted out to be used in the mean time. This isn't even looking at the lack of basic privacy we posses when it comes to our financial assets, on every level our purchases are visible to governments, banks and somehow along the way every marketing and credit institute across the world, I see a MASSIVE unresolved issue here. I wholeheartedly believe Cryptocurrency is the answer to most if not all of these issues as well as many I haven't gone into in this post.
AFC
I will continue to add to the CryptoVsFiat tag over the next few weeks, in the meantime - Check out my top 3 picks for #AltSeason2020
