Fiat sentiments ?

in #bitcoin7 years ago

bitcoin.jpg

Bitcoin is a currency a cryptocurrency, however is it more superior in structure?

Over time many people have been doubting bitcoin as a currency due to the fact that using Bitcoin to give loans is not such a good Idea as the interest might never be able to be fulfilled by borrowers due to the wild price rises.

One must understand life and why bitcoin makes it better. The mere fact that the loans issued by banks in fiat currencies needs to be paid with interest is a result of the constant devaluation of fiat currencies. It is a part of the fiat's design structure.

Fiat loan structure:

Verify Identity
Verify occupation
Request loan
Verify asset
Risk your asset as collateral
Recieve funds
Risk devaluation of funds
Pay back the lender with interest

Conclusion: They lend you money and you pay them back with interest while you tolerate the devaluation of the currency and risk losing your asset that was used for collateral.

Bitcoin however does not need to be paid in interest because it was designed to appreciate. Instead of giving bitcoin loans, bitcoin mining is the closest thing to a loan as you can get.

Bitcoin loan structure : "non existent" Bitcoin was not designed for loans. Fret not the deal is better.

No verification needed
Mine with your own devices or purchase a cloud mining contract
Gain your bitcoin
Gain profits from your investment in mining Bitcoin "interest"
Gain from the appreciation of Bitcoin

Conclusion you do not need funds to start earning bitcoin so that you can earn from bitcoin, however if you have funds you lend your money and receive daily payouts from cloud mining contract which will gain interest on your original investment as well as appreciate in value.

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This post has received gratitude of 1.00 % from @jout