Why crypto is better

If you've played a few video games in your life, you've most likely encountered digital gold & gems. It's a technique developers utilize to remove the player from the reality of money. Spend real money to receive some in game gold. Users are more likely to spend additional money when the real currency amounts are distorted. What's funny is that the concept of gold should feel more like money, than money itself. Not too long ago our government issued bills used to be pegged to gold, meaning that for every dollar in existence, there was gold in the banks to back it up.

The Gold Standard

See, the biggest flaw with the precious metal system was the transportability of them. Lugging around your wealth became impractical and large payments were cumbersome. Luckily (or unluckily) the invention of banks solved this issue by centralizing people's wealth in one place and issuing notes in return. Instead of physically transferring gold, citizens could just transfer the bank note which could later be redeemed for gold, it was a beautiful system. However, what's unfortunate is that by gaining this convenience for payments and security, we absolved ourselves of all the power that comes with wealth. This is our reality, or rather it was our reality until something called the blockchain was born.

The Blockchain

Blockchain is the technology behind bitcoin and all the other cryptocurrencies. Essentially it allows for the list of "who owns what" to be distributed between all the people involved in the maintenance of the network. Anyone can boot up a computer and participate in validating other transactions that the entire network contributes to. The code is fully transparent meaning that any programmer can read the software and determine whether or not it's safe to use. The system works because we believe in the mathematics behind it, and mathematics just work. To put it simply, doubting the validity of cryptocurrencies would be doubting the essence of math.