Wednesday, June 7, 2017

Technical Review FundYourselfNow

 



How the technology has changed. I remember the day and age when our own dollar was on the gold standard. Under the Nixon administration in 1971, the gold standard was replaced by the elimination of having to revaluate and redeem our dollars to an equivalent amount of gold. The only backing we have now is the "full faith and credit of the United States of America". In short, with the advent of the internet and real time trades on the major markets, using the dollar or other such similar currency seems a bit foolish and cumbersome. Hence, bitcoins and using white papers to contract and conduct business, globally. There are several advantages. Firstly, there is no "currency" changing hands, the transaction is happening in cyberspace using bitcoins and via white papers. White papers, in many ways, remind me of governments and large corporations using Baer Bonds and the like for extremely large transactions, typically those by large banks and other corporations.

One of the features of using bitcoins in conjunction with FundYourselfNow

FundYourselfNow Is the lack of regulation because there is no exchange rate to worry about since bitcoins are virtual reality instruments not paper money nor are they actual coinage. Because there is no exchange rate, every transaction is treated at a par value. A one cent bitcoin here in the US is worth the same in the UK. The only problem is that because of the lack of regulation on white paper currency and companies like Fund Yourself , what, if any fail safes are in place to protect the consumer? Another issue of using this relevantly naissant technology is that of cyber terrorism. In this global economy, failing to mention this potential quagmire would be fool hardy and unwise. There are two reasons I mention this Anytime one is on the internet exchanging money, there is the inherent risk for laundering, fraud and theft of not just money, but intellectual property as well. Secondly, because many systems are not as secure as they should be, it entirely possible that our computer systems and other infrastructures could be made even more vulnerable to an attack. Finally, actual terrorists could be receiving the money without one's knowledge. It appears that once the technology has been secured (and Fund Yourself is a step in the right direction) and the bugs and kinks are taken out, using white papers and bitcoin will be as common place as is taking a dollar bill out of one's wallet. In terms of business, I can certainly view the possibilities in both the negative and positive.

In terms of positive attributes, because of the lack of a hard metal or other collateralized type of currency, the relative costs of exchange will be a lot lower than real currency. However, that brings up a real issue of regulation. Who is overseeing these transactions, what is in place to prevent fraud and what of security, integration and the universality of recognizing bitcoin and white papers as legitimate forms of payment? Until, these gray areas have been worked out in this ever increasing global market, there will always be these issues.

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