"Mr. Lightspeed" aka Christopher “CJ” Johnson, PhD
"Mr. Lightspeed" aka Christopher “CJ” Johnson, PhD 4 minutes reading from Bitcoin

Cryptocurrencies: A 5 Ways to Explain Why They Solve Inflation

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Those of you that are involved in crypto / blockchain / web3 will be the pros of the next bull run.

Are you ready to describe how cryptocurrencies are structurally superior to fiat currency?

Here are 5 ways, in plain language, to help you understand.

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1 - Cryptocurrencies solve inflation.

A dollar today doesn’t buy what it used to.

A currency with a fixed supply that can’t be diluted is a breakthrough innovation that is simply not possible with fiat currencies.

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In fact, scarcity drives value.

Gold has retained its place as a store of value for 5,000 years, in part due to perceived scarcity.

Yet there is no greater assurance of scarcity than a mathematically capped supply, which has been made possible with cryptocurrencies.

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2 - There are no foreign exchange fees.

Central bank issued currencies are artificially constrained by geographical borders. I have so much spare change from different countries around the world. They have no utility until I pay an exchange to convert them.

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Cryptocurrencies, on the other hand, are borderless by nature.

The next time you are charged foreign exchange fees or find yourself with worthless foreign spare change, remember that there is a better alternative now available to us.

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3 - Moving cryptocurrency is far more efficient than moving fiat money.

Go try & wire transfer funds anywhere & you could be waiting 3 to 5 days.

You can send your desired crypto currency be it BNB, BTC, ETH or my favorite token PULI in seconds.

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Unlike fiat currency, which requires middle men to move around, digital currencies have a built in payment & settlement network.

You can send millions of dollars to someone across the world using Bitcoin in a matter of minutes, for the price of a coffee. I love coffee.

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4 - Cryptocurrencies can be divided up into very small amounts.

The token I support, PULI, has 9 decimal places.

A bitcoin can be divided into one hundred million units (0.00000001 BTC, also known as a Satoshi).

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This makes micropayments a reality. Without this, the project I support, PULI, would not be able to drive it’s P2E system with much precision.

BlockchainGaming is a great example of how micropayments are helpful.

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5 - Finally, my favorite topic: cryptocurrencies help financing include the globally unbanked.

Think of the problem this way:

1. There are over 25,000 banks with millions of branches.

2. Yet billions of people still cannot access banking.

Source: The World Bank

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What do you see as problems solved by cryptocurrencies?

This post is based on this twitter thread.

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