If you know Bitcoin, you know the story of an IT professional buying two pizzas with this 10K of Bitcoins a decade before. Imagine the money the person could have owned with the sum of 10K of Bitcoins. However, he regrets losing that money for buying two pizzas from the local store based in Florida. Today we see Bitcoin rising to 65K USD, and the kind of money the person could have owned made him procure two pizzas. Nevertheless, the story should go on, and we now see the world getting crazy on digital currency. Many feel that it can be a saviour of this world and the market, which is often affected by the financial crisis. The massive recession witnessed in 2008 led to the discovery of digital currency that came in Bitcoin. How about checking it in the following paragraphs about the same as under:
You can even explore sites like Bitcoin Equaliser to learn more about it; anyway, we will proceed with this post here. So, what is digital currency all about and what adds value to the same? Let’s answer this question; digital currency has no physical existence and works like a dollar or any other currency, unlike traditional money. So, it would be fair to say that many people who feel that Bitcoin or other Cryptocurrencies remain unreal money as they have no physical existence are correct in their justification. However, if you think that fiat money like USD does not have value as they can add the pinch over your finger, think again. Thus, the value we assign for the traditional money is like an illusion, and it can get rid of so far and may not work so quickly. The value of any currency remains a function of its scarcity and the belief that it remains very much scarce in the coming times.
Now let us understand the role of central banks. The banks back the value of fiat currencies, and they control the supply of the same. The value depends upon the capacity of every institution that falls under the control of the currency supply. It never tends to remain too big. Printing too much money will start losing value, creating inflation, and adding up the economic outcome that comes like a devalued currency. Like traditional money, digital currency also has value as they have a shortage of it. Unlike any traditional currency like Yen or Euro, the human-managed groups manage the supply of Bitcoin or any other digital currency. You can obtain Bitcoin with the process of mining. These involve robust programs and computers that further help in mining BTC. So far, they have the limit for Bitcoin supply that goes to around 21 million. Therefore, Bitcoin remains a much safer and assured stored value when we compare it with fiat currencies.
Now, the big question is, how can digital currency come to our rescue? We see economic actors responding to incentives coming as desired results, including the piling up of the profits and the happiness or income factor. As the industrialization of any modern economy has started way back in the 18th century, we can find profits coming in the form of using the least cost method options of the production that further help make things work. With natural resources like gas, oil and coal, one can find carbon-emitting high, while mining solely bears the blame. We have seen a good growth of the transportation sector in a big way that has also resulted in considerable carbon emission. It has further helped in raising global warming and causing extreme weather events all around the globe.
In the coming decades, we need a radical revamping and planning of our industrial economy to escape the climate calamities we can easily track. Carbon Coin comes as a principle that works behind Bitcoin and other digital currencies. These virtual currencies have a big question to survive in the market and thus give an idea of elegance and a simple feature that will flip away from the incentive system in the previous two centuries coming over the rest of the 21st century. The fact of the matter is, digital currencies have the tendencies of clearing up things and helping the world to survive the best.