Money is Now An Image

[Paleus]

Click Here to Read

When an individual makes a transaction on the bitcoin network, no actual currency is moved. That is, no file has moved. No commodity or asset has moved. No private or public key has moved. Rather, the only thing which changes is the percentage of the blockchain ledger which User A & B claim control over.

In the realm of bitcoin nothing ever changes but the composition of the blockchain record. Money is now an image, rather than something which can be separated from the system itself. This image of money is being constructed, altered, and verified by the thousands of machines acting as miners across the globe, and it’s a composition on public display for all to see.

“Tangible money, old-fashioned money … is a phantom from the past, an anachronism. In its place is an entirely new form of money based not on metal or paper, but on technology, mathematics, and science. This new ‘megabyte’ money is creating a new and different world wherever it proceeds. Money now is an image.”

– Joel Kurtzman, The Death of Money

The companies and individuals who approach bitcoin technology with a 20th century mindset will find no success. They will seek to harness the innovation of Satoshi’s invention, and in doing, will slowly realize that the killer application of this technology is to render them obsolete. Bitcoin is an evolution in our concept of the corporation, and a blueprint for decentralized, trustless, openly accessible commerce in the 21st century.

The blockchain is an image of the bitcoin economy at any given point in time.

[1713913467]

1713913467

[1713913467]

1713913467

[1713913467]

1713913467

[1713913467]

1713913467

[Snorek]

Yes, I can agree with this description I feel that is pretty accurate depiction of what is bitcoin. The problem lies not in the way bitcoin is percepted by people but the way we want to compare bitcoin to FIAT.
Average Joe will be shaken by the concept of Bitcoin money (they may be shaken more when they realize truth behind FIAT scheme, tho).

[Paleus]

Yes, I can agree with this description I feel that is pretty accurate depiction of what is bitcoin. The problem lies not in the way bitcoin is percepted by people but the way we want to compare bitcoin to FIAT.
Average Joe will be shaken by the concept of Bitcoin money (they may be shaken more when they realize truth behind FIAT scheme, tho).

Indeed, it is not possible to understand bitcoin when we are coming at it from FIAT perspective.

It is an image which is being communicated to and altered by the thousands of mining devices across the world!

[Kazimir]

When an individual makes a transaction on the bitcoin network, no actual currency is moved. That is, no file has moved. No commodity or asset has moved. No private or public key has moved. Rather, the only thing which changes is the percentage of the blockchain ledger which User A & B claim control over.

Note that this is also true for >99% of all fiat money transactions.

Contrary to what many people may still believe, most Euros and Dollars do not exist. The vast majority of all financial activity is purely digital, and when transferring euros from one bank account to another, nothing is actually being moved. And there are certainly no coins or paper notes involved.

People still associate metal coins and banknotes with the concept of "money", but this physical form of money as an utterly insignificant minority. Credit cards, paypal, wire transfers, mortgages, savings on your bank account, you name it - it's all pure virtual.

[Lauda]

Contrary to what many people may still believe, most Euros and Dollars do not exist. The vast majority of all financial activity is purely digital, and when transferring euros from one bank account to another, nothing is actually being moved. And there are certainly no coins or paper notes involved.
-snip-

Correct, I was recently talking about this as well. I've also mentioned in a recent thread that even when you transact between banks nothing really moves besides a few numbers (unless you withdraw cash). Local (small) banks do not even have that much money. I was recently going to request a exchange of ~1000 euros and they did not have enough of the currency that I've desired.

The companies and individuals who approach bitcoin technology with a 20th century mindset will find no success. They will seek to harness the innovation of Satoshi’s invention, and in doing, will slowly realize that the killer application of this technology is to render them obsolete. Bitcoin is an evolution in our concept of the corporation, and a blueprint for decentralized, trustless, openly accessible commerce in the 21st century.

I especially like this part. Cash needs to partially die as it is old technology. It's good to see that some article doesn't spread wrong information and actually reflects positively on Bitcoin.
One shouldn't wonder why some are trying to separate the blockchain technology from Bitcoin. Bitcoin will essentially destroy their corrupt businesses (such as banks).

[oblivi]

I think "trustless" is not a valid term to use. The word trustless implies no trust at all, when we are trusting the network itself, we are are trusting the network will not screw us over like centralization does. Sure it's a bit picky of an observation but i think there's something that isn't 100% accurate about what the word trustless really tries to convey in this context.

[BIT-Sharon]

What makes Bitcoin similar to a fiat currency is that it has not intrinsic value and its not redeemable for anything will intrinsic value.It has value only because people use it. True commodity money, or commodity-backed money, has some amount of non-monetary demand to stabilize its price -in the days of the gold standard, new gold supply shifted between non-monetary and monetary uses depending on demand. there is no non-monetary demand for bitcoin to provide similar stabilization.

[Paleus]

I think "trustless" is not a valid term to use. The word trustless implies no trust at all, when we are trusting the network itself, we are are trusting the network will not screw us over like centralization does. Sure it's a bit picky of an observation but i think there's something that isn't 100% accurate about what the word trustless really tries to convey in this context.

This is true. We are in fact trusting the network 100% not to go belly up. (or 51% attack)

[Bitcoinpro]

for some reason this has reminded me of my usb miner prediction and damn that came true so fast

[maokoto]

I think "trustless" is not a valid term to use. The word trustless implies no trust at all, when we are trusting the network itself, we are are trusting the network will not screw us over like centralization does. Sure it's a bit picky of an observation but i think there's something that isn't 100% accurate about what the word trustless really tries to convey in this context.

This is true. We are in fact trusting the network 100% not to go belly up. (or 51% attack)

Well, I do not trust the network that much, mayb a 60%. I do think that Bitcoin is trustless as there will be none coming to the rescue if people lose tons of money with it.

This is risky, and it is owning to this risk that there is so much opportunity, high interests, high trading opportunities, getting money virtually from nowhere (mining) etc.

[Paleus]

for some reason this has reminded me of my usb miner prediction and damn that came true so fast

Not sure what you're talking about but would be interested if you could elaborate.

[bitcollins85]

In current society, most have trouble conceptualizing a concept such as bitcoin that is not material, but has material implications. and the process of generating bitcoins is strange. The idea that they are brought into reality via computer hardware calculating a specific mathematical algorithm makes absolutely no sense to the average joe