



Bitcoin exists as a digital cryptocurrency designed to resolve the disharmony between the way money moves online and the truly global nature of the internet. The internet as an infrastructure has already partially eliminated key barriers to consumption, including both geography and time. However, the processes by which transactions are paid for online inevitably requires the presence of a trusted third party (MasterCard, Visa, and PayPal). This stems from the fact that traditional currencies do not exist online, only the promise of payment by the buyer to the seller. As a result, the need for a mutually trusted third party emerges, which frequently takes the form of banks which utilize credit and debit cards.









The Bitcoin system removes the need for a trusted third party, as it presents a virtual payment system that is based on proof as opposed to trust. However, Bitcoin, and other cryptocurrencies for that matter, as a concept tells us something very interesting about the nature of money, as it clearly reveals that money exists as a mutually shared illusion. An illusion that is traditionally perpetuated through a shared understanding of a currency’s worth, not only between consumers and merchants, but also frequently between centralized financial systems such as banks and international governments.









Trust in a currency’s worth has existed as a fundamental trait of almost all historic currencies and without it, transactions would rapidly grind to a halt. Yet rarely throughout history has there been a platform for transaction or market place that is less trusted than that of the internet. Feelings of distrust commonly dominate online transactions and consumption, with consumers and merchants both sharing this emotion. Yet, it is Bitcoin’s ability to evolve this relationship into something more trusted, that leads it to be contended as a financial system that’s truly revolutionary. This leads Bitcoin to hold the potential to be revolutionary in transforming society’s understanding of what money actually is. This trait also leads Bitcoin to become extremely relevant to our social routine as humans, as it not only requires an evolution of our understanding of what is money, but also demands a re-constructed understanding the meaning of money.

My short book (see link below) explains the complex workings of the Bitcoin system and indicates how Bitcoin holds the potential to radically redefine the geography and meaning of money.





James Hamilton - Bitcoin - the Rise of New Money





Available on Kindle for 0.99¢ - https://goo.gl/fMZSeB















