Before we start today’s article, let me ask you one question- what do you know about bitcoin or crypto in general? Well, it’s not what you think, and before I explain what it is actually, I want to start by telling you a personal story about one of my friends. But, before I start, you can click the link here to know some exciting facts about forex brokers , in case you’re interested in that field.
A lot of people fear cryptocurrency, they are either not very familiar with the related technological aspect (which is very little and easy to learn for anyone in just a few minutes), or due to the price fluctuation. So, for the ones that fear cryptocurrency, let us clear one thing first and foremost that you should not fear cryptos. Because, during your lifetime, there is a 20% probability that fiat currencies, such as euro, USD and any other type of currency will fail, and this is a historically proven fact. In Yugoslavia, people suffer from hyperinflation and in essence, their currency became worthless. There are similar cases in Peru and everywhere around the globe – a lot of currency will fail eventually. When we talk about cryptocurrencies, often we get asked by the people that what is it backed by? Because, you know, the US dollars backed by gold, correct? Wrong. Obviously no, it hasn’t been backed by gold since 1971, and it’s actually not backed by a physical asset. What the US dollar is supported by is debts. As one can see, it says right on your dollar bill that just proves that you are in debt and the dollar bill is your debt to the government. So, the current banking system obviously is an intermediary. And as an intermediary, what they do is they charge you exorbitant fees, and they don’t want you to transact directly with a person that you can transact with. Because, that will put them out of business, so they don’t want to do that.
We are all smart investors here, and what do we do is diversify. Probably your traditional investor investments right now look something like that you might have a mortgage, a car loan, etc. But all of those are diversified within the same bucket that is owned by the banking system, and it’s owned by the government. So there’s an alternative to that, and that alternative is cryptocurrency. If you’re cryptocurrency believer, this is a separate basket, and within that basket, you can see Bitcoin, Ethereum, Litecoin, just to name a few of the cryptocurrencies.
Now, what is the future of your investments going to look like? It’s going to look something like you’re still going to have your IRA, you’re still going have your mortgage, but those are going to be the things that won’t last the test of time. Why are they not going to last the test of time? Because they are backed by something that does not have intrinsic value by something, that is a debt to the government. So, we believe that cryptocurrency will be around, and this is the future. It does have intrinsic value, and this is what we’re going to be using to pay for everything in the future.