Cryptocurrency

You might ask yourself 'What's so special about Bitcoin if it is just a new form of digital money? I already used digital money for a long time on my bank account...' but here comes the clue. Bitcoin allows the exchange of money between two parties, without the necessity of a bank. Think about it. Digital money can be exchanged between two parties, without a bank, keeping track of the exchange.

 

Maybe you are thinking right now 'Wow, that's what the whole topic is all about... Exchanging money without a middleman? I do this all the time when I pay someone in cash. No bank ever knows about it...' that's right. With cash you can do so... with digital money, you cannot. You cannot transfer digital money from one bank account to another bank account, without having a middleman (the bank or maybe the government) keeping an eye on every transaction. Is this a problem for most people? Probably not. That's why we don't hear so many people complaining about the third eye watching our transactions. Is it necessary from our point of view that a third eye is keeping track of our transactions? Well... before the invention of Bitcoin, it was, for technical reasons. Otherwise, a transfer from one bank account to another bank account couldn't happen. If you tell someone that every transaction that is made, is watched by a third party, it may sound uncomfortable, even if we have nothing to hide. It is a matter of privacy, like when a love couple has intimate moments together. Even though they have nothing to 'hide' they wouldn't like to be observed.

 

To be fair: I don't blame banks or governments for watching what we're spending our money on. There are laws and governance regulations that forbid observations like that and to be honest, why should anybody care about our spending most of the time? Even though we have laws that prevent observations, technically it would be possible. Only the law would have to be changed or someone smart enough would need to hack into the system.

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So why aren't we more concerned about our privacy? Well... It is just a matter of comfort. The benefits of the digital transfer of money exceed the disadvantage of a lack of privacy. It is not nice that with every transaction, possibly a third eye could track each of our transactions. But anyway, we have nothing to hide so why not just accept it? And we trust the law of course we also trust the security regulations of big institutions so they prevent intruders from stealing our data. And as we all know, this works perf... Well... Other topic. Ok, even if we wouldn't trust the law and the security arrangements, why would I as an individual say something about it? Nobody does and moreover it would make me suspicious. People would ask if I have something to hide or why I am complaining.

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Now we found out that our current state of money transactions is not perfect, but it works, so we live with it. The reason why Bitcoin and other coins are established in our system is because it gives a solution for the described problem. Even though it is not perfect, over time it gained more and more in popularity and increased more and more in value as we all know.