Cryptocaravans: Because cryptocurrencies are necessary!!!

Since the creation of the first coins minted, humanity has used symbols for electronic transfer. The degree of reliability of the State that coined it, with the minted metal and the commercial network involved were always the premises that gave more or less value to the coins.

That is, since coins circulate in commerce, the State somehow guarantees their value. In antiquity, the weight of the coin and the metal it was made of was a guarantor of value, with the State as guarantor of the acceptance of this coin in its territory.

In modernity, given the scarcity of metals, the real value, carried by the currency, was exchanged for a title guaranteed by the State.

In this way, paper money and even digital values ??kept in a bank are direct titles to the bearer, conferring to those who have them, the monetary value printed on the paper, or its monetary value in the form of unalienable fuduciary bank credit.

Again, without the presence of the country, the State, which recognizes these values, paper is worthless and will not be used satisfactorily in trade.

The relationship of fiduciary financial peers is based on this: the degree of reliability that paper money is exchanged in international areas.

These are the virtues of paper money: no need to carry gold - or any other ballast - to close a deal; determine the international valuation of products aggregated internally by the country and the bargaining power between countries' imports and exports.

The virtues of bank credit, in the form of deposits in checking accounts, is the guarantee that these deposits allow the release of more credit through, in case of non-payment, sequestration of what is deposited; It also allows a way to earn some income while the money is ready.

Of course, money saved, out of direct reach, forces the owner to spend less, or at least think before consuming.

Everything very beautiful and beautiful were not a word: reliability!

Thus, the values ??of a given currency also suffer from the management of the economy by the state, the financial health of that country and, especially, if the financial reserves between private and public financial institutions remain solvent, above the debts of the country or, at least, that the debts can be paid by adding the wealth produced plus what is in reserve.

In fact, it happens to normal people: if the debt you have can be covered, somehow, there is no risk - or the risk is low. If a person's debt versus receipt plus reserves are not enough, the person becomes insolvent as much as a company as much as a country.

In other words, the greatest strength of a currency can also be its greatest weakness: having the country as a guarantor of value.

Inflation and domestic interest rates, in addition to fees paid to a country's external debt are signs of how strong or weak the country in question is, impacting the real value of the currency versus face value.

The weaker the currency, or the more erratic the economy of that country, the more prone to speculative attacks that country will be and, therefore, the paper currency will be devalued.

In addition, the country's political instability, which contaminates its economy, also produces negative effects: after all, those outside that country will want to invest in a country that has no legal balance, that changes laws and regulations at the whim of the wind and, mainly, does it threaten industrial activities with surcharges?

The most recent example is the dollar against the Euro, with the Trumph government: For better or worse, with no value judgment being made about the government, internationally the dollar lost value due to the almost weekly instability that the words of the former president caused in the world.

Stability and diplomacy have always been part of these mechanisms that affect the economy.

Adam Smith has always defended that the State, by interfering in the economy, would cause problems for the country itself, its citizens and its wealth. When the state, instead of maintaining and empowering regulatory bodies, allows itself to interfere directly in the financial market, it becomes an investor and no longer guarantor of its currency.

Another example, not just in the United States, is Brazil. Tenth economy in the world, even with the increase in commodities - the country's main export - cannot stabilize its economy due to the political instability that its president insists on maintaining. Translation, in addition to affecting the domestic economy, also causes international imbalance.

We can mention others, such as Great-Britain and Brexit. Japan and its stability mechanisms by re-issuing paper money, and so on.

In this sense, cryptocurrencies are necessary: ??they reestablish the initial relationship between the value of the currency, its commercial symbol, with the state only as guarantor of acceptance and regulator of infringements.

Cryptocurrencies don't depend on crazy presidents, runaway economies, susceptible financial markets for speculators.

They suffer from the same attacks but are not dependent on economic policy.

This gives cryptocurrencies a libertarian form of commerce to be closer than Smith proposes!

And the internet becomes the new silk road, crossing the seas and crossing the dunes, between countries, to take goods between countries and bring dividends to those who have the right to capital: the people.

The blockchain is the security that prevents "caravans" from being robbed on this route, it is the binary defense and guarantee that what leaves one point reaches the other, maintaining the integrity of commercial valuation.

Smart contracts guarantee the "word" between those who trade, the commercial transaction is carried out between two points, in fair agreement, guaranteeing that the caravan's goods return with the "gold" chests.

And, all this, without state interference. It just looks and checks if "tolls" in the form of fees are being paid. that simple!

The example that the state itself can deceive occurred in the Roman Empire itself, when lead to silver began to be placed so that the smallest amount of silver, in the balance, would be paid in full. Detail: it was an emperor who determined this!

In fact, in the modern world, there are many countries putting lead in silver!

The blockchain doesn't let that happen.

But, of course, it doesn't stop an "Emperor" from opening a damn token that is only meant to deceive or a DefI that aims to accumulate money just for himself!

As you can see, the whole problem is with men, not machines!

Good deals!