gAtO ThInKiNg - Why does Digital Currency and/or Bitcoin have trust and how does it get it’s value?
At the peak of tulip mania, in February 1637, some single tulip bulbs sold for more than 10 times the annual income of a skilled craftsman. It is generally considered the first recorded speculative bubble. So we have a flower as a source of VALUE then we got smart and went to GOLD.
Gold is a ROCK so now we based our currency based on GOLD (
a Rock-) and we all know gold is pretty and people want it. To show off how much wealth they have but as we saw when Rome was seized and it’s people could not eat Gold, so a potato or a carrot had way more value to staving people than Gold. A gold based economy is a little different but look at e-gold one of the first DC that failed and it was GOLD backed so how does Gold or a Tulip get it’s value..??
Today we don’t even have a Gold based economy USD- CAN -EUR -GBP -AUD -RUB – CAD – PLN – JPY – CHF – SEK – DKK – NOK – NZD – so why the big deal about BitCoins or any other Digital Currency (DC). Digital currencies like Bitcoin get’s it’s value today from people and merchants using it to trade for products and service. We have lot’s of people using PayPal today and this is a DC of sort but it has so many layers and funds have been frozen with merchants having no recourse to get their money back and we still trust PayPal. Why?
The Record Industry and the Publishing Industry have been declining since the digital revolution. Let’s look at the Record Industry fall there are no more record stores and Amazon has revolutionize the Publishing industry from eBooks to Print Amazon does it all _ I know I published with their help. The reason why these Industries have died is because all they did was try and make laws -DRM -(Digital Right Management) and all kinds of digital copyright laws but the distribution channels that they controlled the Disc Jockeys that payola went thru their nose candy habits. The Internet and the global connectivity killed these guy because they would not adapt the business model to include the digital world and it won….
We don’t need publishers telling us what to read anymore we trust what other people say about it, the unknown community gives it a digital entity that others trust.
Trust Thru A Consensus
Bitcoin and other Digital Currencies have taken the same formula the people have control not some centralize industry – taking a 3% here and 1 1/2% there. Think PayPal, Visa, MasterCard would loose out their 2-3% surcharge compare to the FREE transaction of a Bitcoin.
Yes to get a BitCoin to USD does cost an exchange rate – but we are talking about .02% or lower example 100 BITCOIN I can exchange it and get 99 back – But as the currency becomes popular the rates will come down and we th owners of Bitcoins control it. Merchants that except it control it but no one corporation or government owns BTC. We the people own it, control it.
Today we read “comments” and find that the community not the corporate marketing division control things people giving feedback change products today. – corporations are now looking for “comments” to gauge marketing campaign to change features because the power of the users cannot be controlled that easily “Trust Thru A Consensus “ is something we control just like the new// Bitcoins // -they will re-make the financial picture and we all know how “global bankers” love change// new ways of doing business that they have no clue about — things that they don’t understand like math and cryptology.
They know the old rules and they will fight you to keep them but in the end the consumer will win because we are all a consumer society (they built the machine) and we want to spend out money anywhere we want and we have learned that we are better at money then “THE EVIL GLOBAL BANKERS Bitcoins are not EVIL –
People that rob banks go to jail but banks that rob people get a raise- gAtO oUt