Lots of people (including myself) have railed about how the USA currency is backed by nothing but the belief of the people. Today the latest “fad” in the financial world is Bitcoin. Let’s take a look at how it stacks up.
Bitcoin was originally claimed to be “A Peer-to-Peer Electronic Cash System” which gave the users complete anonymity.
- The coins are not connected to any government agency, so they are supposed to be stable and unaffected by government decisions. (Yet their “value” does fluctuate based on many decisions)
- New bitcoins can be created by “mining” them, through the process of solving a complex mathematical problem. (Why do I have to solve a complex math problem just to earn some money? I already have a full time job!)
- Subsequent coins are created out of the original coins. (Just like any other fiat currency)
- Like any currency, Bitcoins are vulnerable to being lost or stolen. Hackers can break in to bitcoin exchanges and steal them from their rightful owners. (What happened to them being “safe”?)
- Merchants can accept Bitcoins as payment for goods & services. Since the exchange is anonymous, Bitcoins can be used for purchases that may be “less than legal”, such as illegal drugs. (And how can the government get their cut if no one knows who, where, or how the money is used?)
- The actual value of Bitcoins does vary, which causes up & down surges. (Much like the stock market)
- Bitcoins only exist in the digital world, no actual physical coins exist. (They are imaginary!)
So in the end, is Bitcoin or any other “crypto-currency” better than the good old US dollar? Nope, they are all flawed and only work to keep the working class of people perpetually in debt (and thus, enslaved just to survive).