[BLOG] Cryptocurrency — Value and Usability
Tags: Cryptocurrency, Blockchain, Commercialization, Bitcoin

[BLOG] Cryptocurrency — Value and Usability

TEMCO, commercializing cryptocurrency payments

The real value of the fiat currency

What is money? Money may be looked at as “trust”, “security”, and/or “reliability”. Money or fiat currency, in general, has its value because we “believe” its worth. In an island called “Yap” the currency there is a heavy piece of stone. So how did money come around to have its value? Perhaps it is because people believe in such cases as people of Yap believing a stone has a financial value.

However, if we bring this stone from Yap to a developed country, could this “stone” be treated as currency? On the other hand, if we bring our currency to Yap, people of Yap may consider that as only a piece of paper. In the light, we must believe that something has to have a value, in order for us to believe it as currency.

The value of the cryptocurrency

Why is Bitcoin Pizza Day so important in cryptocurrency history? It is because of the fact that it was the first time ever that Bitcoin was used in a transaction for payment, and as this event spread out through social media, Bitcoin’s value as cryptocurrency became more prominent.

Because of Bitcoin’s liquidity, people are skeptical about the cryptocurrency at times. However, could the fiat currency that each country prints out have all the same value? Well, that is not always the case. There are cases that value of the fiat currencies drops, the value of it not even worth more than a piece of paper.

In Venezuela, there were times the market prices increased extremely due to the failure in the country’s economy, a price of coffee increased about 3000 times within a year in the past. So, Venezuela is more often found to be using Bitcoin as more of a realistic currency. In Argentina, Bitcoin has a much low liquidation rate than the Argentinian currency itself, and easier to convert them into dollars, also, it is not so much regulated by the government.

To go further, Tokyo, as the country is planning on Olympics, is going to increase the use of cryptocurrency for international visitors, as they are working on maintenance of their cryptocurrency system. Accordingly, the Japanese government is planning on making guidelines for the use of cryptocurrency.

As Tokyo plans to adopt the cryptocurrency payment system for the Tokyo Olympics next year, it seems that such action will fast forward the commercialization of cryptocurrency and the use of blockchain technology throughout the world.

The advantages of the Bitcoin

So, what are the reasons that the governments and companies around the world looking at cryptocurrency just as good as fiat currency? We all know that there is no need for a bank account to use Bitcoin. The advantage of the cryptocurrencies is that billions of people around the world can use cryptocurrency conveniently without having to create a bank account and use it as one of the major financial systems.

Also, when Bitcoin is used for payments, there are no other fees besides the transfer fee for the Bitcoin. In addition, Bitcoin is produced based on a specific algorism and the amount can be predicted as well. Bitcoin has specific set production amount through programming and the amount reduces as the time passes. So, as the times passes by the Bitcoin’s value increases and the smaller and smaller amount is circulated since less and less amount is produced based on the algorism of the production. Bitcoin’s algorism sets a positive impact on the financial ecosystem.

Commercialization of TEMCO tokens

TEMCO is planning on launching GUHADA platform by the 2nd half of this year. Through the platform, TEMCO considers and presides the use of tokens in a realistic and practical way. Also, in the case of the SI business, tokens will be used to upload data to the blockchain.

Through such implications, hopefully, the GUHADA users of the can understand the real value of TEMCO tokens. The practicality of the TEMCO token economy has been approved and verified by the institutional investors, and as the consumers and vendors utilize the tokens, they may trust and value the tokens as the realistic asset, in which leads to the creation of the healthy ecosystem.