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Why do people still not understand digital currencies?

As a fan of digital currencies, you’ve probably encountered people who still ask questions about the institution or even the government that supports bitcoin or claim that digital currencies have no particular backing. They interpret the current price of digital currencies as a speculative bubble and believe that money. That does not have government support is ultimately condemned to failure. If, after a while of tedious discussions. You still have not explained some basic principles of digital currencies to these people; know that you are not alone!

Daniel Jeffries, in the article fascinating you read below. Referring to the mechanism of human thinking explains why, after a decade of astonishing growth. Many people still lack the confidence and desire to buy digital currencies. Concerning the narrative of money, Jeffries, a veteran futures researcher, paints a picture of the near future. Children will have no contact with today’s common metal or paper money anywhere except history classes. You can read more about this in the language of Jeffries.

Over the last ten years, Bitcoin has had the best arrangement among other assets with tremendous profits. However, most people, from the mass media to most governments to many principal traders, are trying to predict the fortune of bitcoin. The image below shows the implementation report of the most profitable assets in the last ten years. As you can see, Bitcoin is leading by an astronomical margin and has functioned 12,000 times better than the Nasdaq stock index. The second-largest asset.


Why do people still not understand digital currencies?Top asset performance over the last ten years

India has threatened to ban digital currencies, which, if executed, would be destructive foolishness. Gold fanatic Peter Schiff, the famous gold digger. It is so caught up in the rising and falling of gold that bitcoin quickly passes him by and adds to his son’s wealth. Spencer Schiff, the son of Peter Schiff, has invested heavily in the bitcoin market and does not accept his father’s preconception against gold.

Over the past ten years, many reporters and TV presenters have reported the death of Bitcoin more than 400 times. But each time, the reality is different. According to them, Bitcoin is “a Ponzi scheme,” “basically flawed,” “it is a scam,” “it is not considered real money,” and “it is valueless.” Meanwhile, the price of each bitcoin unit has risen from a few pennies to $ 60,000.
Even recently, when artists using tokens Ghyrmsly (NFT) have their artwork with prices macro- sell, considered by many the process was considered just a fad that will soon end. Big names like NBA basketball, on the other hand, have accepted unprecedented tokens.

If you are a fan of digital currencies, you may efficiently fall into the trap of thinking that these people are idiots who can not see anything so clearly. But I must say that you might be wrong. Many of these people are exceptionally smart and successful. But why can’t they see the value of bitcoins and digital currencies? How do they lose something that has made the impossible potential for more than a decade?
To understand why we need to take a brief look at the history of money and how humans form different beliefs.

History of money

First, it is better to clarify that tomorrow’s generation will not even remember paper and metal money. The generation that comes after the Zomer generation will grow up with electronic and programmable money from birth. They only deal with paper, and metal money will be history classes.

The reason is simple. Money today is analog (non-digital) and stupid. This money is made of dead metals and trees and is lifeless. Even the electronic version of this money in platforms such as PayPal is used for electronic funds transfer, nothing but an electronic version of a database. This version is not genuinely electronic and programmable. If you put a dollar bill on the table, you can not use it in a smart contract. All you can do is save it or exchange it for other goods and services.

Why do people still not understand digital currencies?

Don’t get me wrong, paper and metal money are remarkable technologies in their own right. In your opinion, it is probably not technology money, but paper and metal money are in the world of technology. Metal money required minting a coin so that people could not copy and reproduce it. Ironically, money duplication is precisely the advanced form of banknote printing today in central banks worldwide with super-specialized machines. Paper and metal money are a kind of analog technology.

Metal and paper money centralized value into a single universal form that the whole world agreed with. This type of money quickly replaced the commodity exchange, which was very inefficient. The money helped people get rid of calculating the number of cows they had to pay to buy grain!

The method of exchanging goods was complex and inaccurate because the person who was going to take some cows from you in exchange for grain needed a place to keep the cows. Besides, now that he had several cows, what if someone did not need a cow? For example, if he was going to buy a stone to build his house and the stonecutter did not need cows, how should he provide stone?

Metal and paper money solved the problem of commodity exchange. The cow owner could now sell his cows in coins and trade those coins directly with whatever he wanted. The grain seller could also trade his produce for money. And use his own money to build his new stone house without the need for bilateral negotiations with the stonemason and the bullfighter.

Analog money was indeed a unique and universal technology for storing value. Just look at the coin type to see how much it’s worth because everyone accepts that coin. This money changed the world and the way human civilization is governed.

But the life of analog money is fast passing. Digital technology is infinitely more flexible and allows us to use cash in thousands of ways that we never thought possible. Tomorrow’s money is smart.

Just as digital cameras have replaced their analog counterparts, Digital and programmable money will replace plain, old paper money. Kodak has owned 90 percent of the film market for 100 years, but Kodak did not know when and how digital cameras were introduced. According to the company, digital cameras were short-lived boilers that were to be turned off soon; Of course, Kodak was right for a while.

Why do people still not understand digital currencies?

Digital cameras were initially slow and noisy. The shutter speed of digital cameras was quiet, and the result was not as strong as in classic movies. But soon, the engineers solved all these problems, and the sheet came back.

Within five years, Kodak went bankrupt after 100 years of market dominance. Innovation can quickly drive out those who have their eyes on the future.

Of course, if you blame Kodak for ignoring something so obvious, it’s best to take a look at your predictions; I bet most of you, too, missed many of today’s innovations in the beginning. When I started working with the Internet in the late ’90s, everyone was telling me that you’re crazy and wasting your time, and the Internet is only for the use of idiots and computer idiots.

The Internet was slow, noisy, and ugly at the time. When I started working for a Linux company, I heard the same thing again. Now, the Internet is everywhere, like air, and the Linux operating system is the basis of many devices worldwide.