5 Things Every Woman Should Know About Bitcoin
Life is more expensive than ever and frugalness and thrifty living only go so far when our dollar is worth substantially less by the day. Many are realizing that our current, centralized monetary system is wholly to blame, and we need a way out of it. What could be our “Financial Knight in Shining Armor”?
Different suggestions have been made, but one that seems to be gathering waves of support from people all over the world is Bitcoin. Bitcoin continues to increase in value, shows stability that is revolutionary, and is available for anyone to use. The main problem is that we are confused by this relatively new monetary system. However, the answers are simpler than you might think.
Here are five simple points that every woman should know about Bitcoin (often known as BTC). Whether you’re looking to escape the monster of the money printer or merely impress your next date, this knowledge is power. The concept of Bitcoin was introduced in 2008 by a brilliant but anonymous individual(s) under the pseudonym Satoshi Nakamoto. At the time, the world was in financial chaos due to the Housing Crisis/2008 Recession, and recovery seemed impossible. However, as many Bitcoiners say, “Fix the money, fix the world.” With your newfound knowledge, you could help do just that.
Understand Money: Currency and Fiat
First, we need to understand what “money” and its forms are. To understand money, let’s define “currency” and “fiat.” Currency means that something (whether it be gold, Bitcoin, or even cocaine) is generally accepted as a means of payment in a particular area. The reserve currency of most of the world is the US Dollar. Therefore, whatever happens with US currency affects the world, for better or for worse.
Fiat is currency that is backed by an authority, namely a government. As we shall see, when currency is backed by a government, it merely means it’s backed by some entity with a military. The legitimacy of fiat is the military capacity behind it. In the past, assets such as gold were used to back the fiat standard. However, President Nixon famously took the US off the gold standard to fund the Vietnam War. When the treasury’s gold ran out, instead of backing out of a forever war, Nixon appealed to the Federal Reserve (the Fed, which is neither federal nor reserved). The Fed then began to use fiat to operate the monetary system. The Fed printed more money for circulation, which devalued the dollar. Money is simply a means of exchange, but who controls it and what backs it has the power of life and death.