Money $ is something we use every day. From buying our groceries clothing to traveling and car repairs. Everything we do is dependent on the dollar.
Money has no real value. The only value behind the US dollar is based on the fact that there are only a certain amount of dollars. and it’s backed by our government. And that is why the dollar is accepted everywhere in the USA.
Everything changes when Bitcoin and other cryptocurrencies made their own coins. Without the government. And without physical cash.
Now you might ask if my bank account can get hacked. How can I feel secured with Bitcoin? which has no bank backing it? The answer is complicated but let’s go through the basics. Bitcoin and other currencies use a system called a blockchain.
(Blockchain is a system where every transaction gets tracked by a number code, let’s say 10 for example 10 can be added up in a thousand ways. Like 5+5 4+6 3+4+3 etc etc. so basically there is millions of way to get to that number. And that’s only 10 now a 10 digit number would be billions and billions of possibilities. Now if hypothetically a hacker would try to get in it would take for a fast computer about 10 minutes while your computer already knows the number and puts it in right away. And if both computers enter it at the same time. the computer produced a new longer number with the same code. Till it sees which one is the right owner.
These numbers are only on the computer.)
We see it as a very simple code called the 2 key system.
Now with this system in place we don’t really need a bank to handle our transactions. Or even our government to print money.
And on top of all that. Last month the news broke that China developed a new digital currency. Called the digital yaun. And it’s already being used in parts of China.
Yesterday in a 60-minute interview fed chairman James Powell said that the US and other countries are looking into a digital currency.
Powell also claims that. The reason is not necessarily because of China or Bitcoin, but because we have these advanced technology’s and we should use it.
Powell says that while they are working on the design logo system etc. it will only happen if it’s in the best interest of the American people.
Saying that’s what we are mainly focusing on right now.
Would banks go out of business if the digital dollar becomes a reality?
Well, actually this will be very interesting to watch how it plays out. Since banks are the ones who we rely on for all our transactions. Some banks might develop their own currency. Which can be in competition with the US dollar. Which will change the way we see money as one currency per country.
So bottom line the future is here and we are watching it play out in front of our eyes.
Written By: AE