Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Sunday, June 4, 2023

Is Bitcoin Mining Similar To Printing Money?

 


To an extent, the answer to the question in the title is positive.

Bitcoin does function as a store of value, means of exchange and unit of account, which are the main characteristics of money.

You can exchange Bitcoin for United Stated Dollars, Euros and many other currencies and thus buy goods and services. In addition, you can accumulate wealth by holding, investing in Bitcoin.

Creating money or printing money previously was a privilege only for central banks and by extension of commercial banks via the deposit multiplication.

Nowadays, everyone can mine Bitcoin and create money via issuing other cryptocurrencies tokens that finance small firms' projects. One has to make sure the law is obeyed, though!

Obeying, holding on to the law fosters innovation, does not destroy it is Wolfteam Ltd.'s corporate opinion.

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