The most important promise of bitcoin since its launch on the 3rd of January 2009 has not changed. Bitcoin is a peer-to-peer digital money. That is, it is and always has been, and if there are enough participants, it will continue to do so. At least, that’s the point at which doc and Marty Are trying to connect.
Individuals’ misunderstanding of the word cash has been the big problem.
— Marty, You [email protected]) On April 1, 2020
Altcoins will miss what it’s all about
A lot of altcoins hooks up to the promise of bitcoin. Many of them are more or less a copy of bitcoin, and claiming that they have a right to exist because the transaction costs of bitcoin are too high, and the fastener is too low. This can result in bitcoin is, in their opinion, is not viable because of present exchanges are immediately and at virtually no cost to it.
You say that these promises are based on ignorance, ” he said, when it comes down to the definition of the word ‘cash’.
He refers to cash, money is a tool that can be used as a final bill at the market. This means that in order to be included in the definition of cash to drop, a money-well-under the full control of the user, for this to work. Also, the receiver should be ready in the if statement to accept it in exchange for a product or service.
Some of the forms of cash, such as the euro, no charge, and could be immediately settled in as soon as you put the product in their hands, and the money is transferred to. This does not mean that other monetary goods, and the role of cash, and will not be able to play.
He also looks at the hidden costs.
Although, at the time of the sale, may not have fees for the cash payments, such as the euro, are there any hidden costs in the form of inflation. This may occur as a result of the depreciation of the currency. That’s the trade off you have to make. The euro provides a direct and “free” transactions at the point-of-sale, but at the expense of a loss of value in the long run.
The main difference is that with bitcoin, the fees are transparent and every transaction is immediately noticeable. That is, if the transaction is the first layer of the blockchain is progressing (not by the lightning network). Due to the distributed nature of bitcoin, the lack of blokruimte, and the shortage of the total supply of bitcoins, the user will have the transaction fee and the afwikkeltijd in your own hands.
The scarcity of space in blocks on the blockchain allows for competition, to process transactions in a timely manner, the blocks to take out. But the cost will never be higher than what individuals are willing to pay for it. Just how much they are willing to pay will depend on the degree of urgency. If a person is willing to wait, they will have to pay a reduced fee.
The nature of the Proof-of-Work makes, it is a good idea to wait until a certain number of blocks have been added, in addition to the block in which the transaction is to be recorded. So, you will have the assurance that your transaction will not be rolled back or overwritten, can be used.
Therefore, the final afwikkeltijd more than if you go with euros for a cup of coffee, buy it. And since there are only 21 million bitcoins will be in and the individuals all over the world are competing to get those bitcoins to gain the transaction, in euros or in dollars, to rise. Yes, if the price of bitcoin is on the rise and because of this, the number of users increases. You refer to this as the importance of digital gold.
These are the trade-offs, where bitcoin users have to live with it if they want to take care of the peer-to-peer, or distributed, in cash, money that can not be controlled, and it can’t be reduced by inflation. These trade-offs are, in my opinion, well worth the effort.
But there is no use of bitcoin as a method of payment?
However, many people use bitcoin mainly as a store of value and as a speculatiemiddel. Few people use bitcoin as a payment method.
It doesn’t matter. It’s a question of what bitcoin makes possible. Bitcoin enables people to be able to use it as a store of value, medium of exchange, unit of account, etc., etc. Just because you will find that most of the bitcoiners at this point, using it as a store of value, allows bitcoin to function as a medium of exchange. People are using bitcoin as a medium of exchange. You can’t dictate how people in bitcoin to use it. Bitcoin has certain properties, which are of different use cases, it is possible to make.
He concludes by stating that bitcoin is a digital cash instrument.
Sooner or later, more and more people realize that it is a digital gold for the digital money.