ref: 10d9c85830bc3e3c214c2fd15bd4504a494f0834 f-a.nz/_gist/2017/.paper-cryptocurrency.md -rw-r--r-- 1.5 KiB
10d9c858Franz Geffke renamed client, updated time offset, updated frontpage link 2 years ago

title: "Thought of today: Paper Cryptocurrency" layout: post source: date: 2017-04-03 08:00:00 +0200 category:

  • crypto tags:
  • crypto
  • fiat
  • currency bg: ferdinand-stohr bg-author: Ferdinand Stohr author: Franz Geffke

We're all aware of the fact that cryptocurrency such as Bitcoin, Litecoin or Ethereum only carry value, if there's a demand for it. Much like a $100 USD bill buys you $100 USD worth of stuff, so does ,068119891 Bitcoin (1 BTC = $1468 USD). The huge difference between what we call fiat money (USD, EUR, JPY) and cryptocurrency (BTC, LTC, ETH), is that unlike the cryptocurrency, it's easy to spend that $100 USD bill.

For now, the biggest challenge that remains is to get cryptocurrency in the hands of ordinary people, in a format that they can work with. Anybody who ever moved to a different country, understands what it means to adapt to a new currency. Lucky you, if the rate is something easy to break down - like 1:10. A bread that may cost $3 USD at home, is suddenly 3,600 FC (foreign currency), and the cab ride around town doesn't cost $18 USD but 21,000 FC. Imagine what will happen, if your bakery starts charging for the bread in Bitcoin: Due to volatile markets, today it may cost ,002043597 BTC and tomorrow ,002443597 BTC - that's not something the average person could break down, in order to determine potential price changes, or even to compare different products.

Cost of $1 USD milk in Bitcoin 3rd May 2017 - 0.000681198910082 1 month ago - 0.000878734622144 2 months ago - 0.00078431372549