How to Trade Bitcoins and CryptoCurrencies on Plus500 In this article, we’re going to demonstrate you how to trade the cryptocurrency of your choice on Plus500. You can presently trade a broad selection of coins including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), or Dash (DASH). But before we begin displaying you how to trade, you […]
Two. Durable – Its quality/value does not deteriorate over time, which is why we do not tend to use food products as money.
Three. Divisible – If you divide the money in half, each half should be worth 50% of the entire. This is why we tend not to use diamonds or artwork as money.
Four. Stable/Consistent – The value does not fluctuate substantially with time.
Five. Transportable – It is effortless to budge from one place to another.
6. Scarce – It is difficult to acquire.
7. Lightly recognizable – It needs to be evident what it is, mostly for the purposes of #1.
8. Difficult to Counterfeit – This mostly has to do with #6.
Ten. Economical – The cost to produce it must be less than its value.
11. Inherently Valuable – The money should have a use besides its use as money that gives it intrinsic value.
12. Long history of acceptance – A long history of acceptance benefits #1 and #7.
13. Supervised – The currency is tracked by a central authority to avoid economic catastrophes.
Two. Durable – Barring a massive EMP hitting the planet and wiping out most computer technology, bitcoins are satisfactorily durable.
Trio. Divisble – Bitcoins are lightly divided.
Four. Stable/Consistent – Bitcoin prices have been erratic since their conception. They are not ideal as a currency in this way.
Five. Transportable – Bitcoins are very effortless to transport and literally weigh nothing. As long as you have a mobile device, you have them available.
6. Scarce – Bitcoins are scarce by design. They are superior even to precious metals in this respect.
7. Lightly recognizable – Yes, assuming you know what bitcoins are, it is effortless to verify the validity of a bitcoin.
8. Difficult to Counterfeit – Bitcoins show up to be unlikely to counterfeit. Perhaps some day someone will figure out a way, but so far, it would be far lighter to counterfeit any fiat currency.
Ten. Economical – At the moment, it is cheaper to produce bitcoins than they are worth, so for now, yes.
11. Inherently Valuable – No, bitcoins have no use outside of their use as a medium of exchange.
12. Long History of Acceptance – No, bitcoins are fresh and lack a long history of acceptance.
13. Supervised – Bitcoins are unsupervised by design.
- Scarecity- (So it's not lightly counterfieted) Nothing usable as money is as scarce as bitcoin's twenty one million unchangeable limit. It truly is unlikely to edit that number.
- Liquidity- (So no matter where you go, someone will always accept it, and lots of it can be traded) The USD is clearly the most liquid currency for the time being, but as bitcoin's adoption increases, it's volatility goes down at a predictable rate, and more and more places and people accept it. Considering that only 30% of the planet has access to the USD, but soon 100% will have access to bitcoin on their cellphones, it is effortless to predict that bitcoin will become the planet's most liquid currency, in a way no currency has ever been before.
- Fungibility- (So every unit is worth exactly as much as every other unit) Fiat currencies were better at this than gold because gold came in many grades of pureness and stamped by different mints/nations. Bitcoin wins again tho’, just scarcely, because digital 1's and 0's that represent units of bitcoin on the blockchain truly are no different from each other while fiat bills & coins can be worn down to the point where it is questionable if they are indeed what they say they are.
- Portability- (So you can get a bunch from point A to point B) As strenuous as gold was, it was lightly the most portable currency before bitcoin, since you could carry the value of $1 Million within less weight by transporting gold than you could fiat bills. Bitcoin, however, is totally weightless, and basically comes with it's own global teleportation system, so it is absolute perfection in terms of portability.
- Durability- (So they don't disintegrate over time) Bills like the USD are so fragile that hopping into a swimming pool with them could wipe out your savings! Gold was considered the ultimate in durability until now, because hey, it's made of metal. But it could still be melted and it wasn't bulletproof. Naturally bitcoin edges gold out once again, because there's nothing you can shoot or burn to ruin your coins. All that can happen to them is if you lose your private key, which is a problem technology will make more and more unlikely to occur each year.
- Divisibility- (So you could give people smaller amounts of value than the total you have on you) Again, a bitcoin divides effortlessly down to 100,000,000 units, all ideally fungible with each other. Nothing else ever used as money before made it within five orders of magnitude of that level of divisibility!
- Malleability- (So you could re-combine all those smaller bits into a larger bit more practical for use elsewhere again) Fiat bills and coins are pretty horrible at this trait, but our banking system worked around that well enough by letting us trade our coins in for more bills. Gold was better in that you could personally melt a bunch of coin parts back into a lump/bar of gold, but it wasn't effortless to do. Meantime, bitcoin's one hundred million lumps effortless re-combine back into a bitcoin in your wallet just as solid as the day it was mined.
- Recognizablility- (So you could tell what it is worth as quickly as possible) Gold is horribly unrecognizable, requiring a scale to weigh it and reading hard-to read stamps in them, sometimes requiring 3rd-party certificates to ascertain its' pureness and/or worth. Fiat is far better with those big, easy-to-read numbers and words on their faces, but counterfeiting remains a big problem and then there is the nationality problem too. Would you recognize a currency from a country you've never been to? How about if the alphabet was in Cyrillic or Chinese? Nations work against themselves here. Bitcoin is always what it says it is, and says so in your language, everywhere.
- Transferability- (So sending them to anyone else isn't too risky nor expensive) All kinds of problems pop-up when currency switches palms, but the most common transfer complaint is that the legacy banking system has a very slow transfer times, usually restricted to bank branch office hours and nightly processing batches. Bitcoin can take a few 10-minute blocks to be confirmed universally, but it actually propogates anywhere in the world instantly! Coupled with its' ultra-low fees and capability to disregard national borders, it indeed shines in this category too.
- Security- (So you can defend it against theives) Bitcoin has all-new problems being secured, which any bitcoin faithful will tell you is no doubt a real challenge to overcome. We have thousands of years securing physical assets like bills and gold bars by sticking them in strenuous safes and posting armed guards out front. We instinctively know how to do that, but guess what? It doesn't work on the internet, where we now spend the majority of our time and money! Bitcoin is still prone to hackers at the moment, but some awesome improvements are coming soon to put an end to that. Two thousand fifteen will be the year that Multisig wallets are commonly paired with Hardware wallets and hackers will simply have to give up on all these effortless coins they've been getting. Further, no other money has ever had the advantage of true deniability, where you could believably tell a mugger/customs agent/terrorist/taxman/cop/hustler standing in front of you that you don't have any money on you. With a bitcoin brainwallet, you could literally hold the control to a Billion dollars in your memory but even a CAT scan couldn't tell anyone else that you have a bit to your name. So for today fiat arguably wins the security criterion; but by two thousand sixteen it will be visible to everyone that bitcoin is the most secure store of value.
- Incorruptibility- (So the value of it cannot be ruined or watered down by anyone) Gold was the most incorruptible store of value for thousands of years, but in these modern times "paper gold" is traded in place of gold in large numbers on wall street. Paper gold is lightly corrupted, and its' price suppressed or pumped at the will of the largest holders. Meantime, nothing in history has been as corrupted as Fiat money, which we had to invent the term "Hyperinflation" for to describe the end of its' life cycle as it is corrupted into no value whatsoever. In one hundred years of using the US Federal Reserve Note now, the buying power of a dollar has dropped down to a mere two cents. This is simply what you should expect when someone has the capability to print more money. Over time they simply do so. Again, bitcoin has an utterly hard limit at twenty one Million coins and no central point of control exists in the slightest. There will never be a corruption in bitcoin that we can imagine today.
So, let's tally that up, shall we? Winners of each criterion:
Fiat: Two -But both to be overtaken by bitcoin within five years.