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https://www.quora.com/We-just-had-a...tocurrencies-what-caused-this-January-16-2018
There is something I really want to make clear.
A lot of people do see bitcoin as stocks. They do convert fiat currency into bitcoin, they trade like on the stock market, because bitcoin is currently high volatile when it comes to express bitcoin in fiat currency.
People are so conditioned by the idea, everything should be measured in fiat currency such as dollars. It is a habit since time paper money is invented.
We all know since Nixon, the dollar is not backed by gold. It is based on trust in the government. Other currencies did follow that bad example, so they have free resources to bring in money.
Do notice in the past, this was not possible. If the Roman emperor did not had gold, silver, bronze, salt, … the soldiers would not go to battle or defend the land. A lot of kings and rulers did die because of lack of funds.
By now, most should understand, most fiat currencies are a ponzi because behind Your back, the central banks, with cooperation of governments, print money on paper.
Can You image. They print paper money. The banks take a share, the governments take a share, the other part is distributed.
Means the population is ripped off two times. More money in circulation means, prices of goods and services will raise. Because for the same stuff, there is more money in circulation. And they took already a part of the pile they did print.
I did design bitcoin to counter fractional banking. Look to my scientific paper, look to the quote I made in the genesis block.
You can not generate just like that bitcoins. It is a genuine system by calculation. Using math. There are a limited amount of bitcoin to generate, as You need to mine bitcoin, alike gold. With a lot of effort.
What makes gold special. Not because it is looks yellow and bright.
But related to money it is special because it is on Earth in limited amounts. You can not forge it or create it, You need to mine it.
So this made me to think, to make a digital version of gold.
I see in future, gold will be replaced by bitcoin for several reasons.
Some to mention.
So no doubt, central banks and governments do know, the end in near in terms of fractional banking because they simple postpone the debt to the future. You can do this anymore longer.
- Gold mines struggle to find more gold
- Gold is wanted in medical, technical, industrial and artistic sectors.
- Gold is difficult to transport, because it is physical.
- Gold is difficult to transport, because there is a huge security aspect.
- What if, one day, we travel the stars, we find a planet of gold…
On the other hand. Bitcoin is a way out for the banks and the governments. To exit the debt system. To stop the train that will crash, soon or later of the paper currency. Just because it is a total lie in terms of value. There is 10 times, up to 30 times more paper money in circulation as the value in gold.
Government can free themselves from the dictatorship of the central banks that are run by more forces then public ideology. Right now, many banks do dictate the government what is allowed, what is not, because governments do have a lot of debt to the banks.
For most governments it is impossible to back their currency by gold. Especially in the western world. There is simply too much debt and not enough gold.
So why not switch to the solution, bitcoin ?
Well I do expect this will happen in future.
But right now, You see many people who do trade and gamble on bitcoin. Just like it is stock. They do measure bitcoin in fiat currency such as gold.
But the same time, governments and banks do purify their financial system, using the bitcoin, to clear their mess.
Same time, people do buy some gold with their bitcoins, This is a good thing.
But same time, bitcoin is still a perfect system to replace gold. And it will.
I don’t see people sending gold with Fedex to an e-commerce store…. As they will lose trust in paper money….
I am sure, one day, they will not talk in terms of, bitcoin was worth that amount in dollars. NO. It will be the other way around. The dollar will be worth that amount in bitcoin.
Why ? Because it will be a metric. A metric that can not be altered. As no government can trust another government, they can not make their digital version. As nobody will trust it, because of centralization.
What did happen in China and the eastern world, is logical. There are abuses of many exchanges that make huge profit on trading. To convert fiat to crypto-currency or some do money laundry.
In my perception, governments are needed in society and it is a social duty to pay taxes when You make profits.
When China wants to regulate some aspects of the trading services in terms of bitcoin, I see this as a good thing.
Render therefore unto Caesar the things which are Caesar's; and unto God the things that are God's, mark 12:17
If there is no government there is complete anarchism. Anarchism is possible, but only if all of us do have very high moral standards and respect for each other. I don think we are ready for that model, so governments are needed to protect human rights, to give prosperity to their citizens, to enforce law. For that reason, they need to have the means. So I do understand, they want their share and duties. I see no problem at all to that.
So what happens is based on fear by traders and a lot of traders do not know what is behind bitcoin, the motivation, the ideals, how en why it is designed. They just trade and do the same as any other stock on the market….
I think this will continue for several years, until the system will flip in favor of bitcoin. But I am pretty sure, nobody, including banks and governments will destroy bitcoin. First, they can not, Second, it is the best exit for them in the long run. So You will see it will go up, in an exponential way, but of course, there will be moments, people, traders, banks, miners and governments do take their share and profit to invest in society or hm, clean their sheets. Same time paper money is printed. So we will see fluctuations….
All the Best,
Satoshi Nakamoto
twitter: realsatoshin
