The headline of a newspaper article called “Chancellor on brink of second bailout for banks” has been included in the first block of the bitcoin blockchain.
It remains to speculate as to who it has to be added and why. It could just as well serve as a time stamp to prove the date on which bitcoin has begun. However, it is tempting to speculate because it’s a political statement, it’s hard to miss it, it Banks for the second time will be saved after the global financial crisis.
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Focus will be on the wood
This message is, of course, some bitcoin users have a new way for you to protect yourself against the status quo of the central banks. Bitcoin is a way to get away from the traditional approach, where a small group of people in the control of the monetary stock.
It is important to keep the trees in the forest to see. Yes, the price of a single bitcoin has been on a short-term, extremely active, and, yes, the experience is much too difficult for most people. However, the principles of the system in the course of ten years, been shown to be effective.
The future of bitcoin as a store of value and is the basis for a new financial system and criticize it on the basis of the current volatility, it is as if you have a baby who is just a sounds through the creation, rightly, points to the fact that it would be a very boring monologue, it is.
The short – term and long-term
A distinction must be made between the short-term, the price of bitcoin and the long-term characteristics of the network.
In the short term, it seems virtually every fiat currency (like the euro and the dollar to be more stable than bitcoin. However, in the longer term, you may encounter one the system is based on fiat currency are at the same risk that every other tree in history it has been the management of monetary policy by the central party.
Small decisions have big consequences
If a person or group of people is responsible for the administration of the issuance of currency, they are making constant small decisions to promote stability in the short term in order to maintain it. It may be a currency issue, interest rate manipulation, or any other capital controls are implemented.
The free market of bitcoin is, on the other hand, the short-term, volatile, but it may be in the market to find out what the real price should be. Bitcoin has proven that, without the controls, it is not only possible, but it will even be effective. Without a centralized party, which is constantly updated with the rules, to keep an eye on, and adjustments, has the bitcoin:
At 600,000 blocks gemined
480.000.000 transactions
18.000.000 bitcoins is paid out as a reward for the miners
117 billion euros
For 10,000 full nodes have joined
99.98% of the time it works in bitcoin since launch
10 years in a row of higher lows on the price
The existence of a robust network such as bitcoin, without central control, in order to show that there is another way in which the global economy can be built.
Decisions of the government and the banks to the volatility in the short term in order to reduce the periods of economic expansion, to renewal, to be bought off with more debt. And that’s the debt is a problem, namely that governments and the banks, but all the time. A common way of doing this, schuldprobleem to solve it is by more money printing, or inflation.
And this is going to be at the expense of the purchasing power parity.
The time for bitcoin
The time is ripe for an independent currency, such as bitcoin. Just as gold is as a store of value that is not a public authority, may be validated. Bitcoin is a sort of gold that nothing comes first, no space, and is resistant to forgery or interception.
A user can, with the greatest precision, the total number of bitcoins in the entire universe to verify it, and calculate how much of the stock he or she owns. And you’ve got an internet connection, and hardware to the value of € 100 is required. It may sound like science fiction, but this is what bitcoin has to offer.
With the advent of the internet, and the introduction of the bitcoin, are beginning to governments and central banks, to explore the possibilities that exist for their own digital currency, known as CBCD’s. This will give the authorities more control over individuals and businesses. This is not a permissionless (without permission), and then open monetary network like bitcoin has been. In the closed systems, that is the only innovation is to allow, by authorization of the authority’s systems and controls.
Battle was previously won by open networking
Perhaps the best example of which is a permissionless network is the worst of delft on a free network, internet vs. intranet. When the internet is started to be built by the banks and corporations with their own intranets, or networks to which you have no permission to go. All the business segments used in the intranet for their daily work. In the long term, proved to be intranet, not the competition has to offer. Everyone knows it, trusts it and uses the open protocols of the internet.
The choice is up to you.
This is an edited version of an article, Bitcoins the Rhythm.