Finance

REAL MONEY vs BITCOINS

Bitcoin

BITCOIN has taken over from the known currency. Satoshi Nakamoto’s brilliant brainchild has been creating a financial storm since its launch in August 2008. The basic fact about Real Money, known as ‘Fiat Currency’ in Crypto-currency Parlance, is that it owes obeisance to the Central Financial Authority or the Government of a specific country. It therefore falls under the monetary rules and regulations created by that country, and its value is not just controlled by market forces, but also by diktat of the country it originates from. International trade in Real Currency is governed by the Bretton Woods Agreement and Convention, which governs that the basic parity value of different currencies will be tied to the value of a central currency, the US Dollar. Indigenous currencies can be regulated and controlled by the parent countries, but within the purview of overall regulation by the Federal Bank of America (under Bretton Woods). The situation arises therefore, that sometimes, the international Dollar value of some currencies are pegged at artificial levels, not with reference to international trade but to political interference.

But Crypto-currencies like BITCOIN are decentralized completely and do not report to any banking authority or the Sovereignty of any country. BITCOIN is truly free. Unlike Fiat Currencies, BITCOIN does not believe in Paper Money or any form of physical money. To acquire BITCOINS or convert from Fiat Currency, the best route maybe to acquire free bitcoin by offering services that the BITCOIN Owner requires or needs.

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James

James

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