LEO Coin

LEO Coin..

Ø A Little Background:

       Human Activity and trade requires a vechicle of exchange . We need to transfer value for goods and services . Bartering, where I give you furs and you give me woods, is the basic model. Quickly, commodities such as pearls, presious stones, silver, gold started to be used as vechicles of exchange. The first Gold coin was minted in 600BC in Asia Minor (modern day Turkey ).

Looking at, say, gold , it derives and preserves its value from its rarity , durability , fungibility (one ounce of gold ) and ease of identification – essentially factors of security and convenience.

The next evolutionary steps was the creation of currencies, minted coins actually containing copper, silver and gold. The value of the coin was derived from the amount of physical commodity it was made of. But you had to carry it around with you.

Papper money was created by Governments so that it could be redeemed for a set amount of commodity. THE Governments and builts and store Gold Reserve because they backed their currency saying that they could be exchanged  for a defined amount of Gold.

Finally fiat currencies emerged , as a result of costly wars during the 20^th Century,

Backed by Government credibility  - but not a promise to redeem or exchange them. Country after country abandoned the Gold Standard.

Fiat currency values  are essentially created by people’s faith in them.Critics point out many flaws of the system , such as devaluation , fractional, reserve banking , hyperinflation, corruption  and lack of accountability and difficulty and expenses of international transfer.

But here’s the thing, depending a little where you live in the world ,your money is already digital. You use credit or debit cards, online transfer, standing orders for regular payments, Paypal ….. You hardly carry cash around at all. This means is your “money” is just digital entries on banks computer system!

And the Keepers of these digital system charge you for using their system and at the same time use your money to create more business for themselves!

The problem is this: the old system can create money out of thin air, can take deposits (your savings!) and invest in toxic financial products, lends to borrowers who will have little to no- chance of re-paying … and then when they are on the verge of crashing be bailed out by public funds (again, your money!). Or what do you think happens to the value of your money when the Government decides to print more of it?

Centralised and regulated system are largely created to deal with issues of trust and providing worth and ownership. The problem is that corrupts and centralised absolute power corrupts absolutely!

Enter the Block chain.