I've recently been telling everyone about magical internet money. Everyone has the same questions. I should record one of these conversations. Incredibly simple questions. How do you control it? Is it just on the computer? On the internets? What can you buy with it? How does it have value? what makes it go up in value?
I'll try to hit them all
How do you control it?
Well, that's the thing about it is that governments and banks can't control it. That's why it's used on the dark net to buy and sell illegal drugs. They can't really stop it. Governments and banks can't stop it. It's designed to be unstoppable in that regard. That's what cryptography is for, so governments and central banks can't control it. They will try but, they can't control the internet and the network that already exists. If they tried to shut it down. there are multiple versions waiting in the wings, ready to be deployed. Crypto is right now on the tip of exploding into mass adoption. In 5 years YOU will be intimately aware of what cryptocurrency is and how to use it. Everyone will.
So YOU control it. It's peer to peer. You can send it anywhere in the world for very low transactions costs in a matter of minutes. Or with STEEM free, and instantly. But yeah, you have control of it and not the banks or the government you can do what you want with it. Trade other cryptocurrencies, hold it because it's going to go up, buy anything off of Amazon through purse.io, trade it for or against other currencies on the forex markets on sites like 1broker, and yeah pretty much whatever you want to do with it.
So it's just on the internet, on the computer, how does someone not steal it?
Great question!
Well... again, that's exactly the point of what crypto is and as it is being continually developed, there are already several cryptos that are better than Bitcoin. It is becoming more and more secure. There have been huge hacks in crytpocurrency exchanges and platforms but the industry is producing some amazing projects that are clearly going to be a big part of the future.
How does it have value?
Just like anything has value... because we say it does. It's not like federal reserve notes are backed by gold or anything close to that anymore. It has value because people buy it with their hard earned dollars and and other currencies. I, myself try to tax myself about 20 to 30% of my paychecks right now to invest everything I can into crypto.
It can be traded just like any other currency. It works better for it, in fact. The internet is here to stay and this is how money is going to work now.
What makes it go up in value?
Because it's the future. It currently makes up a tiny fraction of the forex market. As things continue as they have, there will begin to be a mass adoption. As the world begins moving their liquid assets to crypt so many cryptos will be needed and used to do many things. The value of many of these cryptos will continue to rise for years to come. Bitcoin will be worth $10,000 within a few short years if it can scale to handle the volume. I can't even imagine what the price will be for cryptos like Steem, Bitshares, Ethereum and a long list of beautifully designed cryptocurrency projects that have functionality that is way beyond what has ever been available in the past.
A euphoric conversation with the excellent folk that are always hanging around in SteemSpeak and then you will understand the title and why we don't have flying cars yet ; )
warning: explicit language, wild eyes, first ever vlog - maybe the last ever too : 0
Satoshi Nakamoto is an Alien from the next dimension ; )