Buy A Cryptocurrency

January 2019

A cryptocurrency is digital money that is embedded on a blockchain. Therefore it cannot be counterfeited, inflated, or controlled by any third party, including governments. Security of ownership is guaranteed. Welcome to the cryptocurrency revolution.

Progressive institutions, both governmental and private, are now in the process of shutting down credit lines, credit cards, and other banking services to those organizations and people who are, in their view, insufficiently progressive. One way to strike back against this assault on liberty is to use cryptocurrencies to completely bypass the current credit system.

Here we will not be analyzing the individual cryptocurrencies. Instead, we will briefly discuss the nature of a cryptocurrencies and their ability to circumvent governmental and private control of money. Something new has been created in human history: currencies that are independent of the state. It is time to understand and buy crypto.

 

Basic Information:

What is a cryptocurrency?

A cryptocurrency is digital money embedded as a cryptographic code on a blockchain.

What is a blockchain?

Briefly, a blockchain is a repository of cryptographic codes that cannot be altered. The reason why code placed on a blockchain cannot be altered is because thousands of computers around the world contain copies of that blockchain. A “consensus protocol” ensures that each copy is exactly the same. 

Thus a cryptocurrency blockchain guarantees that a cryptocurrency cannot be counterfeited.  It also guarantees that your ownership of a cryptocurrency cannot be transferred except by an unalterable procedure that is publicly established and cryptographically embedded on the blockchain.

Since it is on a blockchain, a cryptocurrency is under no one’s control. No individual or government can alter how a cryptocurrency works once it is on a blockchain. Thus a cryptocurrency cannot be inflated or counterfeited. Whenever cryptocurrency is used to pay for some transaction, the thousands of copies of that blockchain around the world are immediately updated and synchronized to show that a transfer of ownership has occurred. If any of the copies of the blockchain are illegally altered to show something, the protocol ensures that they are immediately identified and removed from the network.

The primary benefit of using a cryptocurrency, rather a government-issued currency, is that a cryptocurrency can be engineered so that there can never be inflation. If the total amount of a cryptocurrency to be issued is embedded on the blockchain, and publicly verifiable, no inflation will ever occur. Inflation is always the product of governments who deliberately increase their money supply so that their money becomes worth less and less over time.  Governments deliberately create inflation in order to pay off their debts in money that is worth less than the money that they borrowed. Inflation is a hidden tax that has often bankrupted whole societies. This is a major reason why cryptocurrencies are superior to government currencies, since they can be engineered so that there is no inflation.

Now the actual value of any cryptocurrency, for example Bitcoin, can fluctuate wildly from day to day. But this is not inflation. This is speculation. Currently, no one knows whether Bitcoin is destined to become the world’s primary cryptocurrency or whether some other cryptocurrency will take its place. Thus Bitcoin’s value fluctuates wildly as people buy and sell it, since they are speculating on how much it will be worth, not only in the distant future, but the next day. Indeed, all cryptocurrencies today are speculative enterprises, since the concept is still new and untested.

However, the major governments of the world are already preparing for the coming age of digital money. However, it should be understood that digital money is not the same thing as cryptocurrency. Proposals for government digital money are being purposely drawn to ensure that government digital money will not be embedded on a blockchain, since that would mean that governments could no longer manipulate their currencies.  Instead, most government proposals today aim at outlawing paper money completely so that everyone will have to use the government’s digital money.  Indeed, digital money will be even easier for the government to manipulate than paper money. Once government currencies are made completely digital, they can be used by the government to track every economic transaction that is made. There will no longer be any private transactions. In short, government digital money would ensure a permanent surveillance and control of every economic transaction.

Digital money, therefore, is the opposite of a cryptocurrency. Digital money ensures complete government oversight and control over every economic transaction. Blockchain cryptocurrencies, on the other hand, ensure that no government or person can know about, or control, any economic transaction, except for those people engaged in that economic transaction.

Thus we are in a race to the future. It is a future either of complete government control of the economy or the end of government control.

We will either have radically decentralized, blockchain cryptocurrencies as the basis of the economy, which no one controls, or all economic transactions will be tracked, recorded, and controlled by the state. 

Now it might seem, on the surface, that government digital money is the future, since governments rule by force and can ensure that a governmental-controlled system will become the norm. But this is by no means inevitable. With each passing year, as blockchain cryptocurrencies grow and multiply, and as more and more people use them, the harder it will become for governments to abolish those cryptocurrencies in favor of government digital money.

Although today’s cryptocurrencies are still minor players in relation to government currencies, the monetary value of cryptocurrencies is rapidly growing.  Here is a list of the world’s top five cryptocurrencies, and their value in American dollars, as of mid-December 2018:

Bitcoin                $72 billion
XRP                      $15 billion
Ethereum          $11 billion
Bitcoin Cash     $3 billion
EOS                       $2 billion

 

For Further Information:

An excellent overview of cryptocurrencies can be found in the book The Internet of Money by Andreas Antonopolis (2016).   His online videos on this subject are also of great interest.