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DECENTRALIZATION Of Money - The value of BITCOIN CASH relative to FIAT

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Written by   1075
2 months ago

"...you have to realize that it costs money to make money."


The paper money that is used around the world is part of a set of legal means of payment instruments of a region or country, controlled by the government and issued by a central bank.

Fiat is a central currency used to buy consumer goods and pay for services in a certain place. It is basically made from paper, but in many parts of the world it is now made using cotton and linen to prevent it from being easily counterfeited.

Money has a long history in the market, its date of creation (in the model we know in the United States of America) is the year 1690 and since then it has taken various forms but has never ceased to be issued centrally and under bank issuance & regulation from the government.

How paper money is made

For money to be issued, 4 components need to be consolidated:

  • The paper the money will be printed on

  • The ink that will allow the designs to take shape on paper

  • Plates which is the component that allows to put ink onto the paper money

  • The printing process that enables the paper, ink, and design plates to be printed together to form the US dollar paper bill

The money making process is confidential and everyone involved in the production has restricted knowledge. The role of money production has undergone several transformations to avoid counterfeiting and today it is not paper at all!

It is composed of cotton and linen that has anti-counterfeiting measures, ink also has characteristic components that the government mixes to prevent the money from being counterfeited and are distributed to the paper note using a random way.

At the Federal Reserve it is possible to know in fact what it costs to print each dollar bill, to say that it costs money to be able to make more money.

Therefore, as we can see, the money is centralized in nature, the issuance is made by the central bank, it could suffer forgery and also does not have a fixed supply and can always be printed as soon as the government allows it.

WHAT ABOUT BITCOIN CASH?

First, however, it is necessary to remember how the history of Bitcoin Cash arises, going back to the 2008 when a pseudonym named SATOSHI NAKAMOTO used his expertise to create and also publish the whitepaper - Bitcoin: A Peer-to-peer Electronic Cash system, which would revolutionize the history of the World's decentralized economy.

At the time the term, electronic cash, was not at all new and did not attract wide acceptance. This is because it was believed that electronic money could be easily tampered as most networks had central servers that could easily be exploited.

However, the whitepaper that Nakamoto published already addressed the issues of forgery and security. Using a cryptographic system where the blockchain records and place transactions on a DECENTRALIZED network, Satoshi created an immutable self-propagating Ledger.

The blockchain created by SATOSHI NAKAMOTO works effectively better than a bank, as it allows individuals to receive, store, and spend money in a decentralized way without the involvement of a third party paying lower fees.

It's a virtually tamper-proof network, it can't be turned off and don't have to rely on a third party to be part of the operation to make it happen. The network itself has a proof-of-work system that allows to create and handle money without having to rely on any financial institution.

With the growth of the market, there were clear reasons that allowed Bitcoin to evolve to continue and maintain a form of decentralized digital money, & thus Bitcoin Cash emerged from the hard fork of Bitcoin Core in 2017 .

Attention, Bitcoin Cash was not created in 2017 but had its hard fork to continue to maintain the form of decentralized digital money that Satoshi Nakamoto wanted so much and thus serve the vast majority of the world.

Thus, using Bitcoin Cash, people all over the world can easily store money in a DECENTRALIZED way, send it to family and friends, make donations quickly and at reduced costs, after all, Bitcoin Cash allows everyone to be their Own BANK .

The technology behind Bitcoin Cash allows developers to create Smart contracts that interact with the blockchain enabling various financial applications to be created further increasing the DECENTRALIZATION of money.

Bitcoin Cash is classified in some countries as a property , others as a commodity and bankers see the currency as a competitor while people consider Bitcoin Cash an alternative means of payment or even an investment instrument. Bitcoin Cash by nature has no borders and fee payments are not dependent on distance keeping rates low.

Bitcoin Cash has a useful application among merchants, vendors and the general public as it is decentralized digital money that allows people to make and receive payments for products they need or offer.

Bitcoin Cash is money because it has properties that make it so: it can serve as a store of value - it can be stored to be used at another time; unit of account - can be used to quote prices and also as a medium of exchange ensuring everyone can buy or pay for products and services using the currency.

With all this, it allows the creation of a decentralized economy based on Bitcoin Cash, framing a large majority that step by step finds in Bitcoin Cash a currency to hold and make good use of money.

The Bitcoin Cash blockchain has the capacity to process thousands of transactions and is even faster than certain banking instruments, thus justifying how money serves for what are the aspirations of individuals when they intend to make good use of money in merchants around the world who accept it the currency.

IN SUMMARY, Fiat money is a popular local or regional means of payment, controlled by the government issued by the central bank and can be issued at any time as it has no fixed supply.

On the other hand, Bitcoin Cash is decentralized digital money, it does not need third-party intervention to be transactional, it lives on the Internet (Blockchain) and can be used to make online payments anywhere in the world without interruptions.

Bitcoin Cash has a fixed supply of 21 million and rewards those responsible for holding the network in a DECENTRALIZED way using the proof-of-work system. It allows everyone to be part of it without exclusion.

It is necessary to realize that the world has 2 billion people who do not have access to the traditional financial system (unbanked) because many do not have money to open bank accounts or to maintain those accounts.

With Bitcoin Cash people can easily have a wallet with an address to keep the coins without needing custody and, when using it for payment pay lower fees. Thus, Bitcoin Cash users can bypass banking access issues and also enable individuals to participate in the decentralized Bitcoin Cash economy.

The DECENTRALIZATION of money has a greater focus with the use of Bitcoin Cash allowing more people to participate and preserve their wealth, after all, it is an alternative means that promotes protection against unlawful problems (seizures etc) that the government may lead.

And not only that, using the power of decentralization Bitcoin Cash can also help people overcome problems caused by political divergences that can have harmful effects on the financial system leading to calamities just by providing a practical, easy and safe way to store money in a personal non custodial manner.

Bitcoin Cash represents a modern phase in the decentralized economy which is marked by the rise of decentralization, independence, government-free and taking an active part in the world's economy.


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Written by   1075
2 months ago
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Comments

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2 months ago

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