Bitcoin is Backed by Proof of WORK while USD has No Silver or Gold Backing with Unlimited Supply
A Case for Bitcoin: USD has Unlimited Supply and Isn’t Backed by Silver or Gold
Many people in the cryptocurrency sphere know more about Bitcoin and other digital assets than they do about their local fiat currencies. They found their local currencies being used when they were born and just went along with the story, embracing the US dollar as one of the most stable currency and fit for being standard globally.
The founder and partner at Morgan Creek Digital, Anthony Pompliano, gave a brief history lesson on USD and how the Gold standard was suspended in 1971. In his tweet, he said that:
In 1971 Richard Nixon suspended the ability to convert US dollars for gold.
He publicly said he intended to go back to the gold-standard.
We never did.
Why trust people and governments when you can trust math and code?
— Pomp 🌪 (@APompliano) September 15, 2018
Information on the Federal Reserve website, confirms Pompliano’s claims, noting that:
“Federal Reserve notes are not redeemable in gold, silver, or any other commodity. Federal Reserve notes have not been redeemable in gold since January 30, 1934, when the Congress amended Section 16 of the Federal Reserve Act to read: “The said [Federal Reserve] notes shall be obligations of the United States….They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.” Federal Reserve notes have not been redeemable in silver since the 1960s.”
The Case for Bitcoin
As Pampliano stated, we should trust the math and code evident in the blockchains for individual digital assets, instead of governments and banks that keep quiet as to where local currencies come from. The CEO of ShapeShift, Erik Voorhees, summarized this fact, tweeting that:
“Bitcoin: a digital currency with limited and known supply, no borders, and no central group controlling it. US Dollar: a digital currency with unlimited and unknown supply, border restrictions, and controlled by a banking cabal. What’s in your wallet?”
If you look at Bitcoin and its underlying technology, one can clearly join the dots and realize that it’s a more secure and transparent store of value compared to the local currencies such as USD, Euro, and GBP. With blockchain and cryptocurrencies, we can rely on the code and match where anyone can see the public ledger along with its transaction history. On the case of fiat currency, it’s not possible for a regular citizen to be granted the ledger to a local currency. It is, therefore, safe to conclude that Bitcoin is definitely a better option.
Bitcoin: a digital currency with limited and known supply, no borders, and no central group controlling it. US Dollar: a digital currency with unlimited and unknown supply, border restrictions, and controlled by a banking cabal. What's in your wallet?
— Erik Voorhees (@ErikVoorhees) September 15, 2018