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Entry Submitted by Michael Murdock at 4:24 PM EST on January 23, 2022
…that is a question, and one that you should think about! Or is it one that you should think about? It’s a choice!
Happy Sunday IDC Family. I hope that all of you are well this day.
With the markets doing what they’re doing constantly, some people take refuge in different things from time to time. Crypto is becoming more and more popular since Bitcoin came out years ago. Like the stock market, the crypto market can jump up or fall down based on the words of anyone on the planet. Yes, things drop, but they also ascend into the upper reaches of the stratosphere or even out into space and to the moon.
While there is much terminology to learn about relative to crypto, but once you find out a few things then the reading gets fun. Some people consider investing in crypto like investing in monopoly money. Taking your dollars and cents and putting them into coins or tokens which are backed by nothing, where the dollars and cents are backed by the US GOLD RESERVES which as many know were sold off by the C***L into the hands of the ELITES long ago and that FORT KNOX is just a building guarded by many but filled with nothing but empty safes where gold reserves were long ago. (their words, not mine).
Since crypto is backed by nothing, where does it gets its value from? Here’s some helpful information to share on this. (I didn’t write this, I did look it up for you).
If a bitcoin isn’t backed by a government and doesn’t exist in the “real world”, how is it worth anything? And if it only exists behind a computer screen, how is its value determined? In this article, I’ll answer both of these questions and more. So, read on if you want the definitive answer on where cryptocurrencies get their value.
First, we need to quickly define exactly what a currency is…
What is a currency? For something to be considered a currency, it needs to fulfill these five criteria:
1. Fungibility
For a currency to be fungible, each of its units must be completely identical and interchangeable.
For example, if you swap one US dollar for another, they’re worth exactly the same amount of money. The same applies to Bitcoin, making it a fungible currency.
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2. Scarcity
For something to be considered a currency, there needs to be a limited supply of it. Otherwise it wouldn’t have value.
For example, there is a finite amount of gold in the world, which gives it a value as a currency. Similarly, only 21 million bitcoins will ever be released, which gives Bitcoin its value. If anything, fiat currencies like the US dollar have the weakest amount of scarcity, because central banks can simply print more money when they see fit. The reason the US dollar still has value is because the Federal Reserve controls its scarcity at all times.
3. Durability
Gold would make a terrible currency if it dissolved in the rain.
Because it can withstand harsh weather conditions and centuries of wear and tear, we can rely on it to outlive us, which gives it its value. If we couldn’t be sure whether our gold would still be around tomorrow, it wouldn’t have any value as a currency. Cryptocurrencies are arguably the most durable currency of all. As long as the network they exist on survives, they’ll retain 100% of their value.
Given that the networks cryptocurrencies are stored on are decentralized, it would be almost impossible to destroy them, meaning their durability is essentially guaranteed.
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4. Transferability
The purpose of a currency is to enable trade between people and the transfer of wealth from one entity to another.
For something to be considered a currency, you need to be able to easily transfer units of it to another person. Cryptocurrencies definitely tick this box, as they can be transferred from one individual to another regardless of geographic location (not to mention with relatively low transaction fees compared to fiat currencies).
5. Divisibility
Finally, a currency needs to be able to be broken down into smaller fractions or units.
One of the main reasons humanity moved away from trade and onto currencies is because it’s impossible to trade half a cow (especially if you want it to live!). However, if you only want half a dollar’s worth of something, you can just pay 50 cents for it. This is divisibility. Cryptocurrencies are divisible too. In fact, Bitcoin’s current lowest denomination is a satoshi, which is equivalent to 0.00000001 bitcoins.
Should you get into the crypto currency marketplace? It’s a choice that you have to make. I would encourage a lot of research before doing anything in that area. One day when we get our blessings, I will be investing in the crypto markets because that’s going to be a big part of our future, yes even people our ages.
Do your research, look into places like COINBASE or CRYPTOCOM because they will have training for you that you will want and that will help you understand the markets and exchanges and help you feel more at ease when you do invest in a certain coin or token.
Please share this information with anyone you think may benefit from reading it.
Best regards,
Michael Murdock, US NAVY VETERAN
IF any of you wish to help me with money for gas or food over this next week?
Please click this >> LINKTREE << or use ZELLE by using my email address murdockme@me.com with Zelle.
I use no other services other than these to receive donations/gifts/gratuities.
If you have other information for me, it is not valid.
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