[ad_1]
The maker of Litecoin [LTC], Charlie Lee aka Satoshi Lite, spoke to the crowd at the World Crypto Conference and expressed his views on what provides cryptocurrencies like Bitcoin [BTC] and Litecoin their value.
He started by saying that he or most people have never talked about what gives the cryptocurrencies their intrinsic value.
Lee explained how cows or chickens were used for trading during the day because of their usefulness, but we moved on to feasible monetary concepts such as paper money or gold. Explaining the reason why gold has value, he said it was because of its scarce nature and physical properties, and not just because it "looked beautiful".
The bitcoin, on the other hand, has no physical form and can not be really possessed as it is practically on the blockchain. All you really can do is get the private key to access it and maybe send it to a different address. Conferring to the above point, Charlie Lee continued that it was the same with all cryptocurrencies, be it Bitcoin or Litecoin. He said:
"In reality it is the property of sound money that gives Bitcoin its value and that is why Bitcoin is called digital gold."
Charlie Lee then went on to explain the four fundamental properties that give Bitcoin its value. He said that fiat money is centralized as the government has full control over it and can do whatever it wants with it. He went on to say that, with Bitcoin, it was possible to send money to anyone with the Bitcoin address anywhere in the world and the government can not stop or block it since Bitcoin is decentralized.
He then went on to explain that the transactions that occur on the Bitcoin blockchain are immutable, which is the second property of Bitcoin that gives it value, and that the transactions that happen can not be further modified or reversed. The government can terminate fiat money transactions if desired and proceed to explain it with "Black Friday Poker".
Charlie Lee went on to explain the third point by saying:
"Proof of work and competitive mining are the result of Bitcoin production, so the value of Bitcoin is not zero, as it costs money on mine, and if it does not cost money, you could do more and counterfeit it."
Lee explained that the value of the legal currency has decreased exponentially over time. He explained the fourth point by stating:
"Fiat's money has been tremendously devalued by the Federal Reserve and has put out extravagant names for devaluation as" quantitative easing, "but what it is actually doing is printing money and devaluing everyone's currency."
He went on to explain that this would not happen with Bitcoin because Bitcoin's inflation program is set in the code. He also added:
"It is known in advance that we will reach 21 million and the supply of Bitcoin will never be more than this and it can not be changed without consent, so everyone must agree to change it."
Subscribe to the AMBCrypto newsletter
[ad_2]Source link
