Understanding cryptocurrency requires understanding what is money and how current monetary system works. Many people will criticize cryptocurrencies saying they contain no fundamental value and they are purely speculative. Furthermore, some people even compare it with tulip mania. The reason why it's so hard for most people to understand cryptocurrency is because most people don't really understand what is money. Money isn't wealth. It's an accounting system used to facilitate the exchange of wealth. The paradox of money is that no one actually wants money. They want the stuff they can buy with that money. Many people are put off by the fact that cryptocurrency is just data. But that's what money is, information. More precisely, money is a means for credibly conveying information about value given but not yet received. Or at least not yet received in a form in which it can directly satisfy a person's needs.
What is money?!
Money as a medium of exchange
Money helps to facilitate trade. Money is a medium of exchange because buyers and sellers agree to its common value. In modern economies, the medium of exchange is currency called fiat money. Fiat money is regulated by the government and can lose its value during periods of hyperinflation. Our money used to be backed by gold and silver. That changed back in 1971. Currently it's a house of cards, backed only by debt and ready to collapse. And this is why cryptocurrencies are important. They are the first currency in the world that are decentralized and digital. It is more reliably scarce than gold and more private and transactionally efficient than "modern" digital banking. This is why people are excited about bitcoin and cryptocurrency in general, it has the potential to completely revolutionize money.
Centralised money in a decentralised world
Money is a ledger. With fiat currencies, this ledger is centralized. And that gives the central authority responsible for maintaining that ledger tremendous power, power that history has proven will inevitably be abused. In cryptocurrency, the ledger is decentralized. And that means that no one individual or entity has the power to arbitrarily create new units (thereby causing inflation), freeze (or seize) your account, or block a particular payment from being processed. We've had decentralized money before. After all, no one can simply print new gold into existence. And the 'ledger' of gold is distributed because the physical gold itself (the 'accounting entries' in the metaphor) is distributed. But with gold, that decentralization comes at a heavy price (literally). The physical nature of gold makes it hugely inefficient for global transactions.
Bitcoin was the first cryptocurrency designed to be used as global digital currency. Like any currency, there are several disadvantages associated with Bitcoin. Because of high transaction fees, Bitcoin is not an ideal currency for transferring small amounts and it’s basically becoming useless for micropayments and instant transactions. Can we say Bitcoin is because of this doomed to failure? No, absolutely not. Bitcoin is considered as best Store of Value in history and it will probably remain world's most valuable cryptocurrency forever. However, new alternative cryptocurrencies, also called altcoins, are trying to resolve those small disadvantages like high transaction fees, privacy features and longer transaction times which makes Bitcoin unusable in numerous specific real life situations. Therefore, Bitcoin Adult was desiged to fix those disadvantages, particulary in adult entertainment industry. More about our vision and goals find on our website.