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Bitcoin 2.0: Setting the stage for the future of financial and capitalist innovation

On Ideas in the Making

Capitalism 2.0 video

I remember how I first found out about bitcoins. I don't remember exactly when it was, but I remember reading popular science magazine, I think somewhere in late 2010 early 2011, and they had a massive article on bitcoin. at the time I had very little idea about anything financial or what it all really meant. The article was very basic and didn't talk too much about what it meant to have a distributed decentralized ledger and the like and focused mostly on the whole mining aspect.

Fast forward to 2013, I start working online and start hearing about all sorts of bitcoin services popping up, come April, the giant spike comes, and I am glued to watching bitcoin prices. I read everything out there about bitcoin and decide that this has the potential to truly change the world. I started by taking a small position, shortly after the crash from the massive run-up, and kept doubling down ever 10-15 dollars it kept going down until it bottomed at around 70 dollars.

The reason why was I thought the implications were insane. The ability to just send money is huge. Having heard horror stories about paypal and skrill while making money online (and luckly not being affected by them) and also having had problems with some payments overseas, and paying insane fees for other things I realized how powerful bitcoin could be, Then when I saw the NSA scandal unleash I knew bitcoin would gain acceptance sooner or later: The ability to trully own your money and have it backed by a ledger and cryptography just seemed so insanely amazing to me. The market sets the value, just like gold, and transaction are instaneous, free, no charge backs, and publicly verfiable.

Bitcoin: What people aren't understanding

On Ideas in the Making

Bitcoin has arguably one of the innovations that has led to the highest amount of skepticism in a while. The systems, technology, and rules the bitcoin system has have never been unified in such a way ever before, and possibly have never been possible, or at least as feasible, as ever before in history due to limitations in memory, computation, cryptological effectiveness and internet speed. It is important to remember there are two parts to bitcoin the underlying protocol and what is applicable to said protocol. The underlying protocol, which can be understood to be a decentralized consensus network that uses cryptology to authroize transactions, make it unfeasible to compromise the system and allow one with the cryptologic code to have de facto ownship/authority over what is allocated to that key. To summarize what people aren't understanding is that: The bitcoin protocol makes it possible for people to exchange ownership and also have de facto ownership without conceding anything in between. Furthermore, bitcoin is objective or neutral, in that the bitcoin protocol can't cherry pick which transactions to let through and which ones not to, Everything gets processed the same. No one can sieze your funds, counterfiet you funds, forge ownership, or control your funds. This all assuming you are using bitcoins how they are meant to be used and protecting your private keys accordingly, which is another debate, but the fact that such an arrangement is even feasible is something that immediately makes bitcoin groundbreaking. other things to keep in mind

1. He who has the private keys, has the funds. No questions asked. You can't forge funds or delete funds, you can only lose access too funds. All the private keys thrown away aren't exactly deleted, its just noone has access to them. If you were to miraculously guess the private key to the wallets that have been discarded, you would have control over those funds. Unlike cash which can be counterfeited or destroyed.

2. Net neutrality as mentioned above. No single transaction is cherry picked or stopped, all transactions flow as normal whether they be thousands of bitcoins or a handful of satoshis.

3. You and conclusively verify an addresses fund without have access to the funds. this is groundbreaking. You don't have to trust in a third party to audit, or the trustworthiness of the person. It is literally impossible to game or scam the system, and if you manage to (i.e. break the cryptology) ether the funds become worthless, or the network agrees on a new cryptology to use.

essentially bitcoin makes it possible for people to exchange ownership of funds ( or anything once new things get built on top of the bitcoin network) in a conclusive manner without needing anyone else to clear the funds. A huge amount of society's efforts on the economic front have come from deciding who is credit worthy and who isn't, who is trustworthy, protecting assets and liabilties against fraud and cooking the books, and of course accounting for the risks, costs, and labor associated with moving, reconciling and clearing transactions. on top of all that, the consumer as of late has been the one to pay the price. as having gold or massive amounts of dollars is cumbersome, risky, and a cost in an of itself which can require massive amounts of correction, proviing ownership and such, bitcoins quite frankly just work. they cut the middle man and give power no to the people, as some revolutionaries say, but to no one and everybody at the same time. It is like a market-version of democracy, instead of a representative version. no one concedes their decision making, but rather in aggregate decide which paths to take, and since everyone benefits by having nobody have complete control, everyone decides that nobody should have control.

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