Cryptocurrency offers Alternatives to Traditional Investments and Banking
With Bitcoin’s Popularity Increasing, What’s the Hustle About?
Bitcoin is new form of “currency” exploding onto the scene in recent years. Many would hardly consider bitcoin mainstream, and it isn’t, but more people are becoming familiar with the world. It’s easy to be misconstrued as there are many opinions about it out there. It will probably never be used as a payment system like apple pay, paypal, or any other popular payment systems. Bitcoin and cryptocurrencys as a whole stand for more than the media describes them as. Bitcoin are worth keeping an eye on for a variety of reasons, here are ours:
Central Banking Reserve Entities can’t fully control it
Remember what happened with Cyprus in March 2013? or FDR’s Gold Seizure of 1933? Governments faced with dire circumstances during times of crises will bend the laws they created to serve their own purposes.
Cyprus’ central bank seized depositors assets in the banks larger to recapitalize it’s coffers. Bank runs are common during times of economic strife, but can be avoided if money/assets are not held in a bank, or by a bank (with a mortgage).
Executive Order 6102 is a United States presidential executive order signed on April 5, 1933, by President Franklin D. Roosevelt forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States. The order criminalized the possession of monetary gold by any individual, partnership, association or corporation. At the time everyone submitted their gold via a federally mandated gold forfeiture for a fixed dollar amount when the act took place.
The likelihood of this happening with bit coins should be lower than usual. The currency is decentralized, you own it. There is no central governing body which has control over it. It’s held in your own account so a bank or another institution can’t seize it from you. For people who need diversification bit coin is another investment vehicle to store value in.
Quick Transactions and Low Fees
When you use a check from another bank to your bank for payment the money will often be on hold for several days this is the time period you wait for a check to clear, the bank has to verify the funds are actually available. International wire transfers can take an even longer period of time for funds to clear. Bitcoin transactions are much faster and far faster than a traditional financial institution’s check clearing time frame. The minimum transaction fee is worth less than a dollar in today’s dollars.
You Can Now be the “Bank”
Your bitcoin are held and safeguarded in the wallet you choose to use. There is no bank or brokerage firm your funds stored in. You can use cold storage, backing up your bit coins onto a computer of yours or a block chain app. Moreover your personal bit coin wallets are exclusively the safe guarding institution. No one else has access if your bitcoin safeguarding mechanism works correctly, you have sole access to your bit coin funds. It is not stored at a 3rd party institution. You’re not subject to the boundaries of the rules of regulations set by the banks and government which store and regulate the fiat your funds are backed by.
Bitcoin is not subject to the policies of a federal reserve banking authority dictating the value of your haul depending on their policies be it quantitative easing programs, interest rate setting and so on so forth.. It’s value is derived off other factors not controlled by a central bank or a similar sole governing authority. Factors such as supply of bit coins which is limited, difficulty of obtaining more bit coins, perceived value by others, among other measures determine the value of a BTC on a given day.