Can we really compare currency to a digital asset?
There appears to be much talk about the competition between Bitcoin and the U.S. dollar. The voice of the people is split; many are scared to let go of their comfort currency others are ready to embrace the future. However it seems as though not much attention is paid to their true contrast.
Bitcoin is still lacking a concrete definition as to what it really is. Some call it a currency, others call it a commodity, and still yet others refer to it as an intangible asset. As far as i understand it is is something similar to a stock of a company. It is a share of a brilliant technological structure, a form of "proof of ownership".
The U.S. dollar is referred to as a currency, however more abstractly speaking it is a measure of the influence that the U.S. gold has throughout the world.
To compare the two between each other is rather an absurd thing to do. To try and select which one is better versus the other is the same as comparing a bike to an airplane. Each has it own time and place to be used, each one has a specific consumer that prefers riding in a specific style. Yes they are both vehicles that generally speaking complete the same function: transport from point A to point B, but they are wholly different things that realistically speaking don't industrially interact with one another.
Both of the implementations of these objects are irrelevant of one another.
With or without a dollar, the block-chain technology backing up bitcoin is still going to be just as effective as it is now. The dollar value we put on it, is merely a social valuation of how much impact if has on society.
Likewise, the dollar in no way shape or form relies on Bitcoin to carry its value. (speaking theoretically)
??? Perhaps it is time to observe the two of them from a different lens. Perhaps the two can become one. Perhaps the two can at the very least help one another.
PERHAPS, BITCOIN & USD can be a DYNAMIC DUO.
Both are the top dogs when it come to trading and liquidity in their own markets respectively. Both are heralded as most sought out. Both are readily available for the world. BOTH are here to stay.
Bitcoin rages on as the number 1 CryptoCurrency of all
USD & BTC record volume keeping
Point blank the way i see it is:
If there can be a EURO aanndd USD
If there can be a PESO aanndd USD
If there can be a YEN aanndd USD
then there can most definitely be BITCOIN and USD.
"ALL FOR ONE and ONE FOR ALL"
-Thank you for you contribution and your persistent faith in future technology.
- I would love to hear your outlook on this, we must spread the knowledge and you must have more than I.
nice comparison, however, what really concerns me is the amount of gold in credit, as not every US $ bill has gold backing it!!
this is also what i don't understand what is backing BitCoin, is there gold ? is it calculated by the amount of energy spent for making it?
and if we think it is like stocks, usually there are assets behind the stocks,
i don't know ? perhaps we have not to look at it with the old lens....
Thank you :)
your absolutely right, i agree 100%
from what i understand, bitcoin is backed by the energy expended and complexity of the block to be solved; making it something of almos pure speculation.
now that more and more money is being converted into bitcoin i would suppose that whatever is backing the currency being converted is becoming the backbone of bitcoin
Yah I agree,
so for the future, I think Bitcoin will be the future gold, as it will not be accessible to everyone due to it its value, probably it will be used for heavy purchases like cars and real estate.
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