Bitcoin: Is it the freest financial asset?

 Robert Beamish  

Economic Freedom 

Blog 4 

Eubanks 

Outside of mining the cryptocurrencies, owning an understanding this asset is relatively simple. Bitcoin is a network that runs on blockchain system. The large appeal for Bitcoin is the decentralized aspect. The lack of banks, the lack of government, and low fees are a large appeal for Bitcoin. After Bitcoin debuted, many crypto currencies and block chained systems were made in a copycat fashion. Bitcoin remains king at a market cap with over 300 billion. Many investors now include cryptocurrencies in their portfolio because it is new and exciting, but it also breeds a high-risk and high reward environment. I believe there is a lot of potential in this asset, but it still has a long way to go.  

Some people hoped Bitcoin would replace the fiat currency system. Fiat currency has some advantages over Bitcoin. Fiat money has value because the government says it does, but it has more liquidity and works better with monetary and fiscal policy keeping the economy in equilibrium. The negatives of Fiat currency are the transfers fees and inflation. Bitcoins value is effective from its scarcity as an asset. It has low fees for huge transfers of wealth and is based on the trust of blockchain technology.  

I do not think Fiat currency is going away any time soon, but I do think we will find and see a use for more value based crypto currencies. Bitcoin is a very new technology, but people we are proponents of free society will choose Bitcoin because it is made for the people. It is a bank-free, government free way of transferring wealth without needing a third-party.