True, that cryptocurrency is an asset. The question is if this asset can be build up with debt?
Do you split debt into two, as good and bad? Bad debt shall be the consumer credit or buying sports cars, fashion goods that depreciate in value and good debt is the debt that creates opportunities with building up business and assets.
And now the key to what I wrote above:
So while the average person can take $10,000 and spend it once, banks can effectively do it a great many more time. Therefore, they are able to take $10,000 and turn it into $25,000. Or $35,000. Or more. Since they are only required to keep 10% on hand, they can keep loaning out the money over and over.
As time passes, the more money that comes back to the bank means more available for them to loan. Again, they could realize a 10x in the later since they only have to keep 10% in reserve.
Here can cryptocurrency be one of the worlds fastest wealth accelerator as it can be only lend once and the ones who lends it, will be much more interested to have it back. Imagine what a BTC can do in Venezuela in terms of economical restart when the communist will vanish. Banks and governments of course will want to push for bad debt, same as China is doing everywhere, giving money to states to develop, countries getting in default and giving up key assets, like Sri Lanka did or Greece with the port or Pireu. With cryptocurrency this cases would be harder to happen. I would love to invest in Venezuela and Cuba in small business that can grow and a smart contract on a block-chain would be the perfect option for worldwide business.
The world is changing and in a good way :)
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The wealth that is going to be generated by cryptocurrency is going to be incredible.
It has the potential to end up in the hands of billions of people instead of the elite have it under their domain.
We will have to see how it all plays out.
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100% agree! There is one small thing and variable that has a big impact on all this, namely education. People need more education to understand that wealth does not come from owning the latest iphone bought with debt for one year income but a small piece of land that grows some crops or a forest.
Glad that there are people, especially in here that are educating and helping. Step by step the world is changed.
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They will have to learn or fall even further behind.
People are going to have few places to turn. Governments are going to let them down as are the big tech companies.
What people are putting faith in could be eradicated over the next decade or two.
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Again 100% agree.
Here I have the doubt that most will want to learn. :) Hope that I'm wrong.
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No it seems that most will not learn. They fail to put in the time or take the action required to learn something new.
It is only after it hits them in the face that they start to awaken. Look at all the hours spent on Facebook by people that, in the end, yields very little.
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