Good Morning, yesterday was a bit of a crazy busy day so I did not get around to updating a blog. I was thinking of this topic, the educating about Bitcoin but wasnt sure on how to go about it, and with everything else that was happening I couldnt get the words out.
When we are young children, and starting to learn about the world, we are or were, if we were lucky, given pocket money. We got it either once week or if you were really lucky, or unlucky, depending on your view, you got a lump sum allowance once a month. this had to last the whole month, this had to include entertainment, your precious sweets, and sometimes your clothing allowance was included. We took it for granted that, 50c would get us into a movie on a saturday morning kids club, another 50c would buy as a big bag of sweets, and this we did every saturday and never saw a price increase. Then suddenly we did and our R1 or $1 did not go quite as far as it did last month. No one really sat us down and explained to us what this piece of paper or silver was and how it worked. All we knew is that we could get nice stuff for it.
Race ahead to 2008, when most of us who grew up during the 60s, 70, 80s, now have families and various expenses and most of us if we are lucky to be employed, get a "monthly allowance" from our bosses, which has to support us and our families and buy us our "sweets and other nice things" but we also have to pay for not such nice things, bills! We soon learnt that when we started earning a salary that our money didnt go so far, and in fact month after month we could actually get a little bit less until our allowance was increased in line with INFLATION!! (https://en.wikipedia.org/wiki/Inflation) Now that is a horrible adult word. We got a real awakening when we had a financial crash, the allowance increase was not there, our homes were not worth what we thought they were, there just wasnt money and then governments started creating money from thin air.
Along comes Bitcoins white paper and everyone that is interested starts learning the truths about money and how it is manipulated in value and actually there is nothing to back currency. FIAT currency only has value because some bloke in charge of the countries finances says it is worth such and such. It is actually very frightening that tomorrow our currency could be worth nothing. In Zimbabwe they had out of control inflation where a loaf of bread cost 5Billion Zim $. They didnt have reserves so the government did what any government can do to prop themselves up, the fired up the printing presses in the national mint and printed money, as much as they wanted, no control, no auditing and no responsibilty, and inflation just spiralled out of control. And there was no stopping it. This can happen with any country, any time. There are countries in this predicament right now. So dont say it cant happen to me.
To understand and leverage Bitcoin and other crypto currencies, you need to understand the underlying technology. Understand how it works, how big players can manipulate it, even though it is decentralised and not controlled by a government, big enough players can control its price, but as there are limited bitcoin in circulation, the value will eventually increase, as demand start to grow again, the value will increase.
So educate, educate educate yourself in the sphere, if you want to chat drop me a line from the contact page.
have a great sunday
Cirram
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