Understand Bitcoin With This Analogy…

Have you ever been to a foreign country?

Did you notice that your buying power could fluctuate up or down, depending on the value of your nation’s money vs local currency?

Using my American bank account in Mexico, I would often withdraw 2,000 pesos from the local CitiBank. Depending on the day and political climate, these 2,000 peso transactions would equate to somewhere between $93 or $100 US Dollars.

If I held all my money in local pesos, a 2,000 peso purchase would have simply cost me 2,000 pesos.

But, when converting money I could sometimes score a 7% discount on that same 2,000 peso withdrawal (paying $93 for 2,000 pesos instead of $100). Currency fluctuations are nothing new. Wall Street traders have been making millions in the foreign exchange market for decades.

However, the idea of an average person capitalizing on an easy-access alternative currency is new.

One of Bitcoin’s major benefits is that it allows you to store your money in an easily accessible alternative currency. Bitcoin’s finite supply and decentralized nature also protect you from government incompetence. Random officials can’t print more Bitcoin, and your coins are (theoretically) safe from most economical issues at a local or national level.