Bitcoins are one of the most discussed financial issues in recent years. Everyone is an expert and mostly has a predefined opinion. Today we deal with the advantages, disadvantages and possible effects of bitcoins. Many have gotten rich, many more want to get rich, but is that the goal of bitcoins?
In addition to these points of view, we want to address the most common questions and rumors in individual sub-points. Read more detail at https://weedprofitsystemapp.com/.
BUYING BITCOINS – ADVANTAGES AND OPPORTUNITIES
- Trust! Every currency lives only from trust in the currency. Here are three examples:
- If everyone tried to withdraw their money from their bank accounts tomorrow, many would be faced with empty machines.
- If your house bank goes bankrupt, your hard-earned bank balance belongs to the bank and not to you.
- Your money can be regulated, taxed, and frozen by government agencies.
In all of the scenarios, you only have confidence in a third party (state, Bundesbank, central bank, …). The deposit guarantee fund, which covers a sum of up to EUR 100,000, will take effect in these cases. However, if your trust does not pay off, you will quickly become destitute. Bitcoin owners are not dependent on any other party. The bitcoins belong to the owner at all times and no other.
Expert opinion: There are some studies on different crisis scenarios and almost all experts agree that the state could intercept the failure of one or two banks. However, should a banking crisis occur, no state or government agency can intercept it. The Bafin describes it like this: To the article .
- Limited availability protected against inflation! A number of authorities decide on the money supply, which simply means that more money is brought into the system or withdrawn from the system. Bitcoins, on the other hand, are calculated using a very complex formula from computers. This is called “mining” or “mining”. This process is comparable to mining gold – lengthy, time-consuming and very expensive.
Example: When Germany could no longer pay its war debts, the state printed more and more money. It even got so far that a loaf of bread had the equivalent of a wheelbarrow full of money.
- Speed! The transactions with Bitcoins are significantly faster than with the previous systems
- Bitcoin = cash! For thousands of years we first exchanged goods for goods and then money for goods. We have only been paying interest, taxes, transaction fees, and much more for our money for a few centuries. Bitcoins have the advantage that no other parties can cut off the cake.
- Decentralized! If my bank’s systems fail, I won’t be able to get my money – at least not for the moment. Bitcoins or cryptocurrencies in general are completely decentralized and run on different servers all over the world.
A suitable comparison: In an interview, bitcoins were compared to the Internet once. Even if entire countries are taken off the internet, the Internet will still exist and so will the digital currency Bitcoin. It is possible that parts are temporarily unavailable, but nothing more.
- Can bitcoins be turned off? No, they can’t! Just as the internet is not controlled by any individual, so nobody controls all bitcoins. Therefore no one can switch off bitcoins completely!
Example: Even if bitcoins are switched off or banned in China, Chinese people can still access their bitcoins in various ways.
- Can bitcoins be banned? No, bitcoins cannot be banned. Every citizen (no matter from which country) can freely choose his means of payment. If I have chickens, I can exchange the eggs for other goods. A car mechanic could also repair your car in exchange for weekend shopping.
We only choose the euro as a means of payment because it is scalable and represents a uniform value. It is easy to transfer to the mechanic, farmer or any other bitcoins.
- Bitcoins are a currency that many speculators are currently jumping on. This can lead to sharp price increases, but also to a quick sale. This shouldn’t be the reason to get started, but it could be a nice bonus.