By @Anilsaidso

Part 3 of @AnilSaidSo's Bitcoin primer

A brief comparison of Bitcoin and the current global reserve currency- the US Dollar.

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Comparing the USD and Bitcoin across three dimensions:

Unit of Account: cent vs. satoshi

Settlement: Centralized/permissioned (i.e. SWIFT)  vs. decentralized/permissionless

Monetary Policy: 12 member board meeting (8x/yr)  vs. pre-determined, executed by code

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'To maintain its value, money must be in limited supply.   The Fed.. carefully calibrates the supply of dollars to promote stable prices and maximum employment.   No central bank controls the supply of bitcoin.'  -Federal Reserve Bank of St. Louis

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REACHING CONSENSUS

USD- The FOMC consists of 12 members, holding 8 meetings annually + additional as needed. Committee membership changes at the 1st meeting of the year. The minutes are released 3 weeks after policy decisions.  

BTC- Proof of Work

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PURCHASING POWER

"That it is logical, fair and reasonable to maintain the purchasing power of an hour's work in terms of goods and services the employee must purchase in his daily living."  -Charles E. Wilson  (former CEO of GM and US Secretary of Defense)

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TRANSACTION FEES

Int'l Wire Transfer vs. Bitcoin  'SWIFT is the way the world moves value. We do this every single instant of every single day, right across the world. No other organisation can address the scale, precision, pace and trust that this demands.'   -SWIFT website

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AUDIT

"The Fed's financial statements are also a matter of public record, and are audited annually by independent, outside auditors.. I am well aware of this because I chair the committees that have oversight responsibility for the audits."  -Jerome Powell (2015)

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About the author

Anil is an independent bitcoin educator based in Canada. He holds an MBA, CBP and was part of MIT's inaugural FinTech certificate cohort. He's guest-lectured at Business schools and launched the first Bitcoin-specific university scholarship in Canada. His focus is on simplifying concepts through visuals and storytelling to make bitcoin easier to comprehend.

You can follow him on Twitter @anilsaidso

You can pre-order his book below representing approximately 3,000 hours of research, teaching, writing and design in an effort to best communicate Bitcoin as a concept.

FEW UNDERSTAND THIS: A Visual Guide to Bitcoin Adoption
Bitcoin is hard to understand because we've never had anything quite like it before.A disruptive innovation that is set to fundamentally change how we perceive and communicate value.This book distills the key concepts, mental models, and use cases that help explain Bitcoin's rise to legitima…

Reference link to series recap

No 1 Bitcoin is.

New series explaining Bitcoin as a concept, resources for newcomers
By @AnilSaidSo This forthcoming series represents over 1,000 hours of research, writing anddesign in an attempt to better explain Bitcoin as a concept. These are thenon-technical resources that I want newcomers to have access to as they begintheir journey down the rabbit hole. Happy Reading.…

No 2 The evolution of money

@AnilSaidSo explaining Bitcoin as a concept, evolution of money
By @Anilsaidso This series represents over 1,000 hours of research, writing and design in anattempt to better explain Bitcoin as a concept. These are the non-technicalresources that I want newcomers to have access to as they begin their journeydown the rabbit hole. Happy Reading. No 2 The t…