The lack of knowledge about bitcoin makes one feel that bitcoin is a hallucination. Many feel they are just some numbers in the cyberspace. The whole idea of Bitcoin Up is a mirage and a bubble of the soap. Often many think that bitcoins are bought by fools and people who buy bitcoins from these fools are even more foolish.
But you may have missed out on the fact that the US dollar is also illusion and hallucination. They are also mainly numbers in the cyberspace largely. Sometimes the US dollar is stored in coins or in the form of paper which shows that it is material but the least you may know is the dollar is not materialistic in nature.
You will be surprised to know that 90% of the US dollar is abstract in nature. Those US dollars do not exist in any tangible form.
Facts Check for the US Dollar
There have been many controversies and debates against the idea of cryptocurrency, where mostly the US dollar has been considered to be the tangible one. But Surowiecki has claimed that about just 10% of the total money that happens to be the US dollar is in the form of material. This means that 1 trillion dollars of the 10 trillion dollars happen to exist in the form of material. This is the ultimate form of cash and coins which circulates in the finance, not all of it is in paper and coin.
He also jovially commented that there is nothing that exists that can affect our banking system. The statement was supported by the fact that the dollars are printed on a wish or on mood so there are no hard and fast rules for its printing.
Well, most people have known that the US Currency is also known as “fiat” currency. Now, are you aware of what does fiat means?
In Latin fiat means, “let there be” which means it is an assumption, hence it means that let there be the dollar, hence the intangibility of the coin is proved here. This has always created or raised a temptation among the leaders of the nation who have always found it difficult to resist the power of the manufacturing money.
Hence this led to the birth of the bitcoin blockchains which was mainly produced to hold on the power and the strength of producing US dollars depending on mood. The historical weakness of the money makers was prevented by the birth of the bitcoins.
Differences Between the US Dollar and Cryptocurrencies
There are transactions in both the cases, but the transaction of the bitcoin is safely registered in a ledger while in case of the US dollar the money the bank has the count of it. The difference between the US dollar and cryptocurrencies is radicle, in the case of cryptocurrencies, no authorities of bank or the government can matter to the US dollar while the public can enter the chain whenever they want to. From a very large perspective, the supply of bitcoin is mostly fixed, it depends on the use of the bitcoins and adding of them in the blockchain. While it might be hard to believe that the anonymity of cryptocurrency is much lesser than that of the US dollars.
The entire world and concept of money are very diluted and have any illusion about it all over the world. So, everyone is working on how to make more and more money in any form, while the easiest solution to it is the cryptocurrency. This is a real thing which brings in a lot of power to you and it is valuable to a certain angle.