Bitcoin – The next Global currency?

Bitcoin

Modern money history:

It was the year 1944, known for the Bretton woods agreement. The year when the US dollar was made an official global currency backed by Gold. By the end of WW2, the US had amassed such a staggering amount of net worth. Due to this, all the major countries around the world at that time made a pact to hedge their currency to the US dollar, for the same was hedged against Gold.

Later, In the year 1971, the then US President Mr. Nixon brought an end to the US dollar-based gold. Mr.Nixon made the US dollar free float without gold backing. Thus, instead of printing dollars based on gold reserves, the Fed (The central bank of the USA) started printing dollars without any limit.

Due to this, since the beginning of the 20th century to date, the dollar has lost over 96% of its value (most of it due to excess float of the dollar, which reduces the purchasing power of the dollar bill known as inflation). The more dollars to float, the more of its worth to reduce. The logic is the same be it any currency, especially if the same is not backed by an asset to control.

For thousands of years, we have used Gold & Silver as our currency. There were times when people had used a lot many other commodities such as seashells, live stocks as currency, for the same were governed by some governing agency be it the rulers or the town elders.

There are stories in history where people used seashells as currency and on a later day due to some events, the currency was termed illegal by the governing body. Thus the entire transaction is to be considered a punishable offense if done via seashell. People abide by this rule to stop trading over seashells. Thus, one who controls the monetary system controls the entire economy.

Any transaction made without the centralized currency would be termed illegal and a punishable offense. So, over the years no matter what we consider as currency, it had to be approved by some of the other governing institutions. Think of it, what gives the government the power over us? Why an individual has to abide by the rules and regulations set up by the government for if we don’t we will have to bear the consequence! What gives the government the power to control and rule over us? 

It’s the ability to control the money flow. The US probably has one of the largest printing presses in the history of mankind thus, the power to control the planet. And hence, the title “Superpower”.

Money represents value. The value we use to vouch for various goods and services. Throughout history, we have used a lot of commodities as money. Gold is a prominent one. More people accept an asset to be valuable and will in turn make it as money. Over the years, people have turned over to various types of commodities for money. Each had its fair share of advantages and disadvantages.

The new standard of money is decentralized. 


When we say decentralized. It’s the transfer of authority from the government to the people. An authority to create, manage and destroy the currency was at the whims and wishes of the government. Wherein, the government has exploited this boon to its extreme sense. Eroding the savings worth of millions of working individuals in the name of inflation. 

The millennials and the next generation are always on the lookout for freedom. And, freedom from the centralized currency system is what crypto technology stands for. Today, in the crypto world, Bitcoin & Ethereum has over 65% of the market share and is a leading cryptocurrency literally changing the world’s monetary system. Challenging the old and rigged banking system and competing with the worthless fiat-based US dollar at its core. Read more about the US dollar-based Stock market crash that’s here!

When we had Gold and silver as our transacting currency. There is an intrinsic risk of the same being stolen. Gold is difficult to carry around and couldn’t be used for transactions freely. Everyone knew the wealth you possess and the purchases you make. The money was very much apparent. It was too real and although served the purpose. It lacked the present generation’s need of being concealed and to maintain lowkey.


Then the government came and introduced paper money. We call it Fiat currency. Stating that it’s entirely worth every inch of gold or silver you own. Primarily, the dollar was based on gold reserves. Post elimination of gold standard. The free-floating US dollar and the rest of the currency around the world were only termed as transacting currency for we believed in our central banking system. Although it served the purpose of easy mobility. It failed to preserve the value.

We trust the government-provided money. The value for the same is based on its legal standpoint and is not based on any intrinsic value. In that logic, the entire world fiat-based currency system is literally worthless. It’s more like, we believe it has value and hence it does.

Excess printing of fiat currency has made the already floating currency lose its purchasing power. All that takes for the US Fed is to add a couple of more zeros into their system and we have a couple more trillions of dollars floating around making previously printed currency worth less than they used to.

In that sense, Bitcoin is more transparent than ever. We know exactly how many bitcoins have been mined and how many more to go. We know their price for its actively traded throughout the world. Although it’s at a speculative stage. The real worth of bitcoin can be seen post-mining of all its 21 million coins. Thus, the supply side of bitcoin is limited and when the demand increases. The worth of bitcoin will increase and experts see no visible end for it.

Bitcoin is a transparent currency system without any central authority (Decentralized). The transactions are transparent and are recorded as in block-chain.

Why Bitcoin?

  1. Bitcoin has no middlemen, its transaction is way cheaper than any other source. It’s way cheaper to transact at much greater efficiency.
  2. With bitcoin, one can get access and full control over his/her wealth. None can tamper with bitcoin as they had done with fiat-based currency. The worth of bitcoin is decided in the open market on the ‘demand and supply principle’.
  3. Decentralized monetary system. The one that empowers common men and women. It’s mankind’s first step towards a free society.

To get more info on Bitcoin: Check out the article by the Bitcoin creator Mr. Satoshi Nakamoto – “Bitcoin: A Peer-to-Peer Electronic Cash System”. Satoshi Nakamoto is said to be the creator of Bitcoin. A revolutionized technology that’s gonna entirely change the banking sector. More power to free society!
I believe the gold-backed currency system is long stretched from reality. We will surely have a new currency system. The one that’s not going to erode the worth of an individual’s savings. The one that’s decentralized, transparent, and empowering. Although CryptoGold is still on the table. Only time can tell what the future lies ahead.

I believe one has to invest in an asset only when he/she finds value in it. Understand its true worth and buy at a discount. Valuing a company has been relatively easy for all it takes was to do the number-crunching and find a suitable story behind it.

I was never able to judge the value of Bitcoin. That’s where I went wrong. It’s an asset at such a stage wherein none can quote a price over it. It’s wrong for us to be speculative over its price. Instead one should look for the value of the technology behind crypto. As I always said, Crypto technology is the best we had since the beginning of this century and it took us a sweet amount of time to realize it.

Finally, Before investing in Bitcoin. Ask these three questions to yourself. 

Questions to ask:

Do you actually understand the concept of Crypto? And its impact on our economy. And then, Invest if and only if you are satisfied with your answer.

Are you ready to accept bitcoin? If yes, to what extent of your portfolio to be in crypto. Remember, Diversified asset allocation is the first step to wealth creation.

With COVID-based pandemic recession making all kinds of noise all around the world. One has to think not only of his/her personal health issues. But, also has to safeguard wealth. What kinds of steps have you taken to address the issue?

Which Cryptocurrency is the best to Invest in?

Disclaimer: All the information on this website is published in good faith and for general information purposes only.

Also read:

Time for change in the US dollar based monetary system is here!
Yes Bank comes with a big NO?
Diversified asset allocation leads to wealth creation.
Capitalist Democracy – The new India
Value Investing – The charm of Investing:

49 thoughts on “Bitcoin – The next Global currency?”

  1. I like it when individuals get together and share views. Great website, stick with it! I am sure this piece of writing has touched all the internet people, its really really pleasant paragraph on building up a new blog. Everyone loves what you guys tend to be up too. This sort of clever work and exposure! Keep up the wonderful works guys I’ve added you guys to my blogroll.

  2. Parbriz Daewoo Nubira

    Nice respond in return of this matter with genuine arguments and explaining everything on the topic of Bitcoin.

  3. I have been browsing online more than 2 hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. In my opinion, if all webmasters and bloggers made good content as you did, the net will be much more useful than ever before.

    You have made some decent points there. I checked on the net to learn more about the issue and found most individuals will go along with your views on this web site. Ahaa, its a nice discussion regarding this piece of writing here at this blog, I have read all that, so now me also commenting at this place.

  4. Quality posts are important to attract the viewers to visit the web page, that’s what this web page is providing.

  5. Attractive section of content. I just stumbled upon your blog and in search of crypto contents. I actually enjoyed the article on “Bitcoin”, your blog posts are interesting. Any way I will be subscribing to your argument and even watch out for more.

  6. I do believe all of the ideas you’ve offered for your post. They’re very convincing and can certainly work. Still, the posts are too brief for beginners. Could you please lengthen them a bit from subsequent time? Thank you for the post.

  7. Hello! Someone in my Facebook group shared this website with us so I came to check it out. I’m definitely loving the information. I’m bookmarking and will be tweeting this to my followers! Fantastic blog and amazing style and design.

  8. Have you ever considered about including a little bit more than just your articles? I mean, what you say is valuable and everything.
    But think about if you added some great images or videos to give your posts more, “pop”! Your content is excellent but with images and clips, this site could certainly be one of the very best in its field. Excellent blog!

  9. You actually make it seem really easy along with your presentation however I in finding this topic to be actually one thing which I think I would never understand. It seems too complex and very vast for me. I’m having a look forward to your next post, I will attempt to get the grasp of it!

    1. Hi Windy,

      I understand what you mean. Crypto is truly an interesting topic and one that’s hard to grasp.
      We’ll surely try to write more into the topic and help more individuals understand more about the technology.

      Be sure to reach out to us via Twitter, we’ll surely answer your doubts and queries.
      Twitter link; https://twitter.com/Iam_MrPai

  10. Hi Windy,

    I understand you. Crypto is really an interesting topic and it does take time to understand.
    I also assure you that we’ll try to provide you with up-to-date content that is easy to understand.

    Be sure to follow us on Twitter. You can ask us doubts and we’ll surely be there to help you out.
    Our Twitter account; https://twitter.com/Iam_MrPai

  11. This is really attention-grabbing, You’re a very skilled blogger. I’ve joined your feed and stay up for in the hunt for more of your magnificent post. Additionally, I have shared your web site on my social networks!

    1. Thank you, Roselle

      Thanks for the kind words. It surely motivates us to provide more such content.
      Be sure to check out our “YouTube Channel”. We intend to upload videos from the coming January. All our videos will be on Investment, Economic Analysis, and Personal Finance.

      YouTube Channel link: https://www.youtube.com/channel/UC3vfc8G1sysZleCAKbytRFQ?view_as=subscriber

      Delay in ‘YouTube Channel content creation’ is mainly due to “Covid”. We are trying our best to make content video asap.

  12. Spot on with this write-up, I absolutely think this amazing site needs a lot more attention. I’ll probably be returning to read through more, thanks for the advice!

  13. Patricia Chandler

    I think this is among the most significant info for me. And I am glad to read your article. But should remark on few general things, The web site style is wonderful, The articles are really great.

    Bitcoin seems hot at present…!

    Good job, cheers

  14. This is really interesting, You are a very skilled blogger. I have joined your RSS feed and look forward to seeking more of your magnificent post. Also, I have shared your web site on my social networks!

  15. I blog often and I seriously thank you for your information. This great article has truly piqued my interest. I will bookmark your site and keep checking for new information about once per week.

    I opted in for your RSS feed as well.

  16. کلیک کنید

    I could definitely see your enthusiasm in the article you write. The sector hopes for even more passionate writers like you who aren’t afraid to mention how they believe. At all times go after your heart.

  17. Hello,
    This post is really Informative, particularly since I was browsing for thoughts on this matter last week.
    What do you think? Will Bitcoin breach 20k US $?
    Will we see Bitcoin take over as a global reserve currency?

  18. Hi! I could have sworn I’ve been to this blog before but after going through many of the posts I realized it’s new to me. Nonetheless, I’m definitely pleased.
    I discovered it and I’ll be book-marking it and checking back frequently!

  19. Hi,

    Just checked your YouTube video.
    I disagree when you say Government can control Bitcoin. 😉
    I don’t think any government can do anything about Bitcoin.
    Bitcoin will go to the moon 🚀

    1. Hi David,

      Thank you for checking out our content.

      Either it is me who’s underestimating the Bitcoin or it’s you underestimating the government’s intentions.
      As a free-market promoter myself. I really want your words to be true. But, I truly am skeptical about this.

      Anyways, time will tell further 🙂

  20. That is the precise blog for anyone who desires to find out about this topic. You realize a lot its almost hard to argue with you (not that I really would want…HaHa). You positively put a new spin on a topic that’s been written about for years. Great stuff, just great!

  21. Gus The Red Star

    Thank you for writing on Bitcoin.
    Can you give more informations? Like.. what next for Bitcoin?

    I’ve invested 20k dollars during covid period. I’m at loss. Should I Hold or sell?

    1. Hi Gus,

      Bitcoin is a speculative investment. One that needs to be invested after considering the fact that we could lose all of our invested capital.
      As you’ve already invested 20k US $. Whether to book loss or keep holding is up to your risk capability for taking loss.

      If holding onto the 20k $ won’t affect our finances in any way negatively, then, as you are already at loss, booking the paper loss to make it real makes no sense.

      Best wishes.

Leave a Comment

Your email address will not be published. Required fields are marked *

error: Content is protected !!
Scroll to Top