Hello Steemit
This is our first post on Steemit. Our Steemit username is coinpress21 and our website is 21coinpress.com. For simplicity, the 21coinpress team will refer to ourselves as the "coinpress21 team" on the Steamit platform. 21coinpress.com is a website dedicated to providing news and information on cryptocurrencies. We will post copies of our posts and articles on the Steemit platform. Be sure to check out our website and upvote our blog, thanks!
Yours Truly,
The coinpress21 Team
Hello cp21 team. I am part of a 3 man team, as well. Figured, if I am going to do things like YT blogging, I might as well bring in some steem crypto with the time-investment. Plus, no censorship in Blockchain. Let me ask you boys something: I know y'all keep calling this stuff currency, but tell me, with all the wild swings in value, how the heck will be be able to make long term real estate or business capitalization loans with it? Right now, this stuff seems to me like we should be calling it "CryptoCasinoChips"
Hi fundposhprincess,
Sorry about the delay in the reply (we have been busy over the holidays). In our reply we have explained why some Cryptocurrencies have huge potential and their inherent advantages over the current global monetary system.
At coinpress21 we like Bitcoin and Blockchain for several reasons. First of all, there is an important difference between currency and money.
Currency has a set of traits that can be described as: a medium of exchange, a unit of account, portable, durable, divisible, and fungible; whereas money has all of the listed characteristics of currency but is also a store of value. For the sake of this explanation I will compare US Dollars, Bitcoin, and Gold. US Dollars are created through two primary methods.
Firstly, the Federal Reserve Bank (the central bank of the U.S.) prints dollars. Secondly, other banks loan out the money that we deposit with them. This is called “fractional reserve banking”. In the U.S. banks can loan out up to 90% of the money that people have deposited into them. They still list the full amount of dollars in a person’s account even though they only hold about 10% of that amount at any one point in time. The person’s bank account is reflecting that person’s “bank credit”. This is in effect creating more dollars (this is called the M1 money supply).
Huge amounts of dollars are created in these two ways; in fact, there is no “cap” on the amount of dollars that can be created. This is why US Dollars are subject to inflation. Currencies like the US Dollar are what is called “fiat currency”. According to investopedia.com, “Fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material that the money is made of.”
Since the dollar is constantly being inflated it is not a very good store of value. This is why I do not consider US Dollars to be “money”, they are just a bad currency. Gold on the other hand, is money because there is a finite supply of it. This makes gold a great store of value.
Bitcoin will only ever release 21 million Bitcoins into circulation. This means that like gold, Bitcoin is finite in its supply so it cannot be inflated. I do admit that Bitcoin still has some problems (mostly because of how young it is). Bitcoin’s price is currently manipulated by whales, its energy consumption is not sustainable, the network has gotten slower, and network fees are too high but these are problems that can be fixed. Volatility is only a problem right now and as the system matures and financial institutions invest in it the volatility that we see will disappear.
Many people claim that since Bitcoin is digital it has no true value but these people use Dollars every day and the dollar is only worth what people agree it is worth just like Bitcoin. The price of Bitcoin is determined by the free market and the dollars is susceptible to manipulation just as Bitcoin is. (the banks can expand or contract the economy by dictating how many dollars are in circulation). Bitcoin eliminates the need for a middleman like the banks and is secure and global. The banks view this as a threat and that is why Jamie Dimon discredits Bitcoin.
I can go on about Bitcoin but I’ll end here. I hope this is a thorough answer to your question. Do your own research on our current monetary system and Bitcoin’s systems (technical and monetary). There are many interesting things I didn’t know until I searched about them. If you have anymore questions just let us know and we will be happy to answer. If you liked our explanation give us a vote and check out our website- 21coinpress.com.
Thanks and Happy New Year!
Coinpress21 Team
cp21. No. I am fully aware of all that you post here, but sadly you didn't address my main question, the answer to which is missing in the hope to see cryptoCurrency become our "money". To repeat: Let me ask you boys something: I know y'all keep calling this stuff currency, but tell me, with all the wild swings in value, how the heck will be be able to make long term real estate or business capitalization loans with it? And let me add: Have you been following Vinny Briatorre and his AD4M concept? Fascinating stuff.