Our guest today is Rod, he joins us to talk about crypto-currency.
Crypto-currency is growing exponentially. Some can see it as an opportunity. This episode should be viewed as for information purposes only.
We discuss the value of money, legal tender, and what money means. Fiat currency is currency that a government has declared to be legal tender.
Rod talks about using something else as currency (i.e. cel phone minutes). In this example, you know that the item has value, it isn’t tangible, you can’t hold it, but you know it exists. Supply and demand; when there is a high demand for something, and low supply, price goes up. This is affecting the price of bitcoin. Blocktrain is the track that bitcoin travels on. We have always relied on a centralized authority, blocktrain offers a decentralized method/system. There are obstacles to business (that are intended to protect you), bitcoin goes around these obstacles.
There are factors for “good money” over “bad money” – scarcity, portability, divisible, consistent, acceptability.
A decentralized currency can also decentralize travel.
We touch on what bitcoin mining is and the level of computer required to do this.
However, to have a contingency, bitcoin could go to zero. No one has a crystal ball. Know that $2,000 could go to zero or it could increase. You have to know what you are doing, and be sure you are doing something you can afford to do. People tend to jump in at the wrong time. You only get involved to the risk or amount you are willing to lose.
Be wise, wisdom itself is worth more than gold.