This is part of the reason why Bitcoin is many thousands of times more valuable than other coins.Īnd like fiat currency, crypto is only valuable because people treat it as valuable. Like fiat currency, cryptocurrency is valued based on what it can buy. How do these principles apply to cryptocurrency? Well, they carry over more directly than you would think. Electronics, land, stocks, clothes, food, anything. It is valuable because of how much of anything it can buy. So, the Australian dollar is not valuable because of how much gold it can buy. This is because, at that point, the currency’s value is tied to what it can get you. Once everyone understands what a specific currency is and once that currency is everywhere, you do not need to tie its value to a specific material. Well, that is what is so interesting about currency. But why? What was the new standard for currency? Australia followed suit, as did many other countries all over the world. Many countries had the gold standard, but in 1971 the United States abandoned it. This meant that you could find how much the Australian dollar was worth by how many dollars it took to buy a set amount of gold. Up until 1971, the Australian dollar was based on the gold standard. Paper money (called “fiat currency”) is a curious thing with a curious history.
They represent people’s trust in the country of Australia. It is what they represent that is truly valuable. Let’s be honest, the pieces of paper we call “dollars” are just that: Paper with no function. This has to do with the fundamental truth about money: It is essentially based on belief. They can use the money however they want, but most times it exists as ones and zeros. Most people in Australia do not handle any of the money that they earn. So, let’s dig into them so that we know how to judge the good mining software from the bad. Everyone knows what Bitcoin is… But how does it work? And while we’re at it, how does Bitcoin mining work? As popular as Bitcoin is, there is a lot of confusion surrounding these topics. There is a perception that Bitcoin mining is restricted to super-powerful computers, but this is untrue.
This has lots of people looking for fast and easy ways to cheat a new and vulnerable system.īut there is another way to get Bitcoin besides scamming people, and this way is totally legitimate: It is called Bitcoin mining, and all you need to get started with it is a device with an internet connection.
A single Bitcoin will sell for at least $38,000 and sometimes as high as $45,000. It has gone from an obscure joke to a modern curiosity to a dominating force in the economy.
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