Imagine, selling your business for a cool million dollars, retiring, and then waking up one morning to find out the million dollars you have in the bank is worth less than $1 when it comes to purchasing power.
And yet that is exactly what happened to a Zimbabwe farmer who sold his land in 2009.
You see, fiat currency creates the illusion of value by being "backed" by real and tangible assets (like gold). The problem is that the U.S. dollar has not been backed by a tangible asset for a long time.
Every U.S. dollar in circulation is backed only by "the full faith and credit of the United States", and has no inherent or intrinsic value whatsoever.
Furthermore, the real controlling interest of all of this "new money" is the good old Federal Reserve, a PRIVATE institution.
The FED is regulated by no one and is controlled by only a handful
Bitcoin, on the other hand has a fixed supply of 21 million coins.
No more coins can ever be issued beyond that point.
This gives all bitcoins in circulation some form of value at all times (just like a commodity), with the potential to increase in value over time.
It will actually take until 2040 before all bitcoins are mined.
There are no institutions "printing" additional bitcoins and unlike fiat currency, where one institution is responsible for controlling the money supply, Bitcoin is consumer and user driven.
Lastly, spent bitcoins are injected directly into Bitcoin's growing economy once again. Spent fiat currency is kept out of the ecosystem until it is brougt back to the bank, which can take hours, days, or even years.
Bitcoins economy is self-sustainable, open to anyone, and simply better.
Ben Bernanke, ex Fed chairman, stated in an open letter to congress that Bitcoin "may hold long-term promise".
Of course once the heads of the Big Banks slapped him down, he took