Hey guys, How are you ??

I hope you are fine By grace of Almighty.

I am also fine, Now I share with you 4 part Bitcoin and Digital Currency.

About three and a half thousand cryptocurrencies have been launched in the market after seeing Bitcoin.

After Bitcoin, Ripple, Etherium, Bitcoin Cash, Cardano and Lightcoin are above the market price. Their full market value is said to be above two and a half billion dollars! Remember, they are priced because people are buying them with money, otherwise they are just a number mentioned in the blockchain! Not all are the same, but each has its own special qualities, such as Ethereum being used by many businesses as a real money placeholder, due to its advantages. But most of the cryptocurrencies on the market are based on plain vanilla, open source, and anyone can create a new one and run a massive campaign on social media to get people interested in buying it, and take away huge sums of money from unsuspecting buyers. In the United States, however, new policies have been introduced to make exchanges more accountable. Exchange and mining, on the other hand, are now banned in China.

Fearing these various regulations, cryptocurrencies are now a little cheaper. If you are thinking of investing, now is a good time. But I will not advise him. The price of Bitcoin and other currencies fluctuates a lot due to speculation, and all this in a correlated way, that is, the lack of real diversification. Big Wall Street firms are also in the business. Their pockets are very deep, and they can control their prices by trading high frequency with the help of computer algorithms. Pockets like yours and mine will be cut from the middle. Many say that due to limited supply, their prices will go up like gold. My question is, people can go to parties with gold jewelry on their hands and necks, what is the use of bitcoin, will you make a certificate and keep it tied? (Note, I'm not rescuing a bunch of blockchain technology! See Episode 5.) Stock market companies have real estate, even if they don't make a profit, and there are prospects for future profits. Why leave all that bitcoin gambling?

From a computer programmer's point of view, I would say that peer-to-peer networks and open source models have problems transacting money. There are a lot of bugs in open source software, volunteers fix them and maintain the code. If someone loses crores of rupees due to those weaknesses, then who will return the money to him? Even if the bank money is lost, it can be returned due to insurance. In other words, there is a need for the banking group, because they have to be accountable! If the public money system is bitcoin, then who will be responsible for its fluctuations? On top of that, even if your private key is secret, is there any guarantee that someone who hacks into your computer will steal it and take away your money? In this way, hackers have already attacked some exchanges and made money disappear.

If you are a carrier of personal freedom and use Bitcoin for that reason, then where is the problem in using cash? Withdraw money from ATMs and buy marijuana-heroin-porn whatever you like, who is coming to see? And if you want to buy a rocket launcher, then of course it is like blowing the nose of the government! And the fact that it is not possible to get a pass by trading with Bitcoin, the revelation of Ulbricht's identity by the FBI is a big proof of that. Moreover, as the days go by, the rewards of Bitcoin mining will decrease, meaning that only those large companies that can acquire the most skills with multiple computers at once will be able to mine profitably. They will then be the sole controller of the Bitcoin network and will be able to mismatch it as a blockchain if they want. That means ‘back to square one’, that central bank monopoly and dollar-euro deal (or worse)!

And from an economist's point of view, bitcoin has many limitations. How successful can Bitcoin be as a currency of a huge economy? Not one! First, limited supply means that this currency is deflationary. However, all modern currencies should be inflationary, as I said in the first episode. As the economy grows, so will the purchasing power of each bitcoin if the number of coins does not increase along with the wealth. Then people will start putting it under the cover, it is happening now, which is called HODLing by coin lovers. So, the transaction for which Bitcoin originated, if it does not work and becomes a collection, then how is the currency?

Second, confidence! This is the most important thing in any currency. But people are so obsessed with trading bitcoin on the exchange that today the price of bitcoin is 17,000 and tomorrow it is 7,000. How is this currency the basis of purchasing power? People say that the more people use it in transactions, the more stable its value will be. Are people really using bitcoin in transactions, or filling in the blanks?

Third, in any economic system, at one time or another, there is a collapse, for various reasons. It is not always the government or the central bank that can be blamed. Then if the supply of money is not increased and the stability is not brought, then the economy will run like a mad horse. If you are an engineer, you will understand the feedback. Feedback is definitely needed, the free market government-central bank only intervenes in emergencies so our situation does not always stand like Zimbabwe-Venezuela. As such, I would say that well-known economists at the Federal Reserve and the ECB have protected the world economy by printing dollar-euros in 2008, and now, after stabilization, those dollars (or equivalent bonds) are being taken out of the market and "destroyed". In the Bitcoin system, computer algorithms make new money. He is bound by the rules, how will he understand when he needs to give feedback?

To be continue..........

Bitcoin and Digital currency-1👉 https://read.cash/@Kawser199/bitcoin-and-digital-currency-1-63cdb91e

Bitcoin and Digital currency-2👉 https://read.cash/@Kawser199/bitcoin-and-digital-currency-2-ddc83926

Bitcoin and Digital currency-3 👉 https://read.cash/@Kawser199/bitcoin-and-digital-currency-3-5f3cd523

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