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Lionschain Capital - Why Invest In Crypto?

May 2019

posted by Lionschain Capital
1mo ago 286

Lionschain Capital - Why Invest In Crypto?


Created in 2009 by the pseudonymous Satoshi Nakamoto, Bitcoin is an open source, non-state-backed finance network. The launch of Bitcoin debuted the use of blockchain technology. Blockchain technology enabled the creation of digital scarcity. The native currency of the Bitcoin network is the crypto commodity BTC. The Bitcoin network is operated by a public mesh of node operators, which process transactions and monitor the state of the limited supply of 21 million BTC on a global decentralized ledger. The network operators automatically prevent double spending of BTC and reneging transactions; creating a dependable, secure method of digital value transfer.


Historically, money has primarily existed as a unit of account and means of exchange backed by commodities. Over the past 100 years, money has moved away from being commodity-backed (for example by gold) to being state-backed (fiat). This presents a challenge on a global financial scale, where nation-states are able to increase the money supply, essentially taxing the holders of the currency through inflation, and provides little incentives to minimize national debt (as they can always just print more!). Since the movement away from commodity-backed currency, the USD, for example, has lost roughly 95% of it’s purchasing power over the last 80 years.


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