Crypto is linked to getting rich quick scams. Does it? When you possess large amounts of cryptos, does it make you wealth automatically?
Before we dive into what is wealth, we want to learn does money makes you wealthy?
What is money?
Money is a medium of exchange that can exchange from one person to another. It is a one fixed form to exchange various forms, said you use the money to buy food.
What is the value of money?
As I described in my previous view, value is subjective. When you are a buyer, you judge how much it costs you and whether you want to use the money to exchange such goods or services.
What is money nowadays?
The fixed form of money has changed since the crypto booming. Money can be anything as long as people value it as money to spend.
The new definition of money in a digital world:
The money is not just a medium of exchange anymore but a database that the central bank kept in their balance sheet. The cryptocurrency makes more clear this feature of money as a database that transfers from one end to another except there is not identification linked into such data.
CBDC is a digital currency:
CBDC is directly issued from the Central Bank as a digital currency that linked your identification into the money. Then you got a complete picture of money is an equal database.
So you got money that makes your wealth?!
Maybe it will provide short-term wealth but not long-term wealth. In other words, you feel rich in the short term but you are not wealthy in the long term.
When the price of crypto goes up, you instantly got rich along with the trend. However, the cost of living goes up as well. Unless your valuation accelerating faster than the rise in the cost of living, you just simply feel rich.
So you feel rich?!
Not really either since everyone feels rich all at once. We are consuming much more and faster than we supply. We are actually getting poorer.
Where is crypto in the big picture?
Crypto is on a way to head into a dangerous zone that is a source where rich created. It is not! It is a viable solution for tomorrow in case the existing system crash. However, it is not a system to recreate the existing system where riches were born and dominated the cryptosystem.
At some point, crypto may collapse?
In some way, if crypto got more political, it may drag itself into a difficult situation that cannot get out, and eventually, it may collapse itself. Of course, it is just speculation and from personal opinion.
What will survive eventually?
Blockchain technology may be the last ever if crypto crashes. It is a system that “may” prevent corruption to intervene in the automated public ledger.
Don’t believe me and always verify. I wrote this article to warn myself and keep me aware of this illusion that today’s economy creates. It is all fully speculated as you see there are not many references I cited.
Why I wrote this article? I think you want to be always awake to realize how money easily create for everyone to grab is just too good to be true.
Whether you trust crypto or not, you must verify before you believe in it.
Of course, you can always disagree with me here.
Photo by Andrew Haimerl on Unsplash
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Disclosure: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose cryptocurrencies are mentioned in this article. This information is only for educational