Why is Bitcoin in the highest level of trust?

[RainbowKun]

Many of us learn knowledge related to Bitcoin on bitcointalk to achieve cognitive growth. In my opinion, ideas behind Bitcoin are more important than the technical architecture of it because it is thought that guides actions. Trust is a respectable characteristic of Bitcoin, which has reached the highest level of trust. Why?


First we need to understand why we need trust in our daily lives, then why Bitcoin has the highest state in trust---trust-free.


In real life, as a member of human society, we are engaged in various economic activities every day. We get paid through work, and then use income to purchase various materials for basic needs. The reason why diversified economic activities of mankind can be executed normally is because there is a set of basic order followed by us. But this order is often controlled centrally, leaving a space for power rent-seeking, which has courted injustice to a large extent.


In the current world built by centralized system, the authenticity and validity of wealth transferring is protected by a third party as an intermediary. Who is a completely credible middleman? That role is mostly played by banks and all sorts of payment agencies, credit card companies, etc. We trust them and their services ensure the normal conduct of economic behavior. However, once one of the banks goes bankrupt, all of our assets there may disappear.

• In banks' ledger server, our money is just a string of number. Banks render these number effective. We trust banks then we carry out normal economic activities. But thought banks will not directly tamper with the number in our account, the government can depreciate the value of our wealth by issuing paper money in a large amount to deprive our money.
• When it comes to Bitcoin, no intermediary is needed in money transferring. A distributed system built trust with the help of decentralization. Bitcoin protocol allows two separate individuals to conduct transactions in a peer-to-peer manner via the Internet. When you transfer Bitcoin from one account to another, you can trust not only its underlying system for support, but also the authenticity of the sender and the validity of Bitcoin.

In the distributed network of Bitcoin, intermediaries are replaced by public key cryptosystem and consensus mechanisms to ensure the authenticity and validity of transfers. This is why we say that Bitcoin solved the trust problem in transactions and accomplished intermediary-free and the highest level of trust---trust-free.


How do you understand Bitcoin's solution to trust? I'd like to know your ideas.

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[BOAEDAN]

because bitcoin is safe and reliable, when bitcoin first appeared until now, it can be said that bitcoin has been operating for more than 11 years, no one feels cheated and harmed by bitcoin, the price of bitcoin every year there is always an increase, if we invest bitcoin in the long term most people will benefit, bitcoin is also a very valuable asset, so bitcoin is still the main choice for businessmen, which is definitely no element of fraud in bitcoin, so bitcoin is still at a high level of trust. .

[NeverSop]

I think Bitcoin has safety, the highest level of security. Censorship resistant and unbreakable. Another way, bitcoin cannot be influenced by anyone, completely decentralized. All proven from history, features over time
Everything else may disappear completely one day. But bitcoin is not.

[mk4]

With Bitcoin itself, it's mostly the fact that you actually don't need to trust anyone. You only need to have trust that the code would work fine. In contrast to banks and finance platforms that can go bankrupt like you said, or can just straight off fuck you up if they wanted to.

With Bitcoin in contrast to other cryptocurrencies, it's simply the fact that Bitcoin has been operating for 10+ years without downtime(besides that one time very very early on). Whereas other cryptocurrencies are yet to prove their sort of "solidness".

[Kong Hey Pakboy]

I think Bitcoin has safety, the highest level of security. Censorship resistant and unbreakable. Another way, bitcoin cannot be influenced by anyone, completely decentralized. All proven from history, features over time
Everything else may disappear completely one day. But bitcoin is not.

Dude, if everything else disappears that means that everything is, no exceptions. I do agree with what you've listed though, and I think the only reason those things listed gets compromised is because of the people, if they get negligent and careless, all the things that makes bitcoin strong becomes useless.

[Mikayla Buckley]

Since entering the industrial age, economic crises and financial crises have erupted intermittently. The double-entry bookkeeping method used in the contemporary financial system, invented centuries ago, hides the truth. The bank manipulated behind the scenes, making the assets and liabilities the same as the prescriptions written by the doctors.

The "decentralized digital currency" based on the blockchain provides people in the world with a new trust model "decentralized trust". Bitcoin is a complete, trusted, verified, secure, financial and accounting Digital value system.

[Lucius]

However, once one of the banks goes bankrupt, all of our assets there may disappear.

I don't know how it is in other parts of the world, but in the EU every resident has an insured amount of up to EUR 100 000 in case the bank goes bankrupt or becomes illiquid. On the other hand, we can only remember Mt.Gox and all those hundreds of thousands of BTC that have disappeared and the fact that customers have not yet been compensated.

It is wrong to state that Bitcoin has absolute security over money in the bank, because you ignore the fact that millions of that same BTC are in the custody wallets of large crypto exchanges - Coinbase alone has about 1 million BTC.

If we look statistically, people have lost billions of worth of BTC over the years because they believed the wrong people or didn’t know what they were doing - maybe it would have been better if they kept the money in the banks.

[Ucy]

I tend to see it as a system that handles the trust issue better, so you would need to worry too much about trusting your peer. And I think you could also see it as a system that requires little to no trust rather than not requiring trust at all. In reality you need no trust to participate or use it, but I wonder how sustainable that will be long-term.

[Wexnident]

Well its the highest level of trust since in the first place, you don't need to trust it. It just works that way. The system was automated to do so in the first place, and after a decade of it working, I'd be pretty confident to say that it works just like how it says its going to work. Other shenanigans that you'd need to manage is done and guarded by you yourself, so really, if you still actually lose money, 99% chance is that it's your own fault, maybe for opening sites that get you phished or something. The 1% being that rare chance of something wrong happening.

[mrongoz_imut]

why bitcoin is at such a high level of trust,?? it can be said that bitcoin is safe and reliable, everyone feels comfortable investing in bitcoin, until now there have been no cases of fraud committed by bitcoin, bitcoin is a global currency, now there are countries that have legalized bitcoin, that's why until now bitcoin can still high trust..

[Nunoluck]

In my opinion, we are now trapped in an economic system which is force us to suffer financial loss in every year. Today, we use fiat as the main currency which always experience inflation. I think people start to think that it is not right and they have to escape this scheme. I personally choose and trust bitcoin as an investment because I want to safe my wealth from inflation. Although bitcoin don't have an intrinsic value unlike gold but as a normal person who can think logically, I think bitcoin is much better than fiat and I will have big probability to earn profit by holding bitcoin. And it is proven, I earned a lot of profit from bitcoin.

[Tim-BTC]

Most of the trust in Bitcoin comes from the fact that it does not require any trust at all.

Bitcoin is completely open source and decentralized, which means that anyone can view the entire source code at any time. So any developer in the world can accurately verify the working principle of Bitcoin. Anyone can check all existing bitcoin transactions and issued bitcoins at a glance in real time.

All payments do not rely on third parties, and the entire system is protected by cryptographic algorithms reviewed by a large number of experts, such as those used in online banking. No organization or individual can control Bitcoin, and even if not all users are trustworthy, the Bitcoin network is still safe.

[Darker45]

However, once one of the banks goes bankrupt, all of our assets there may disappear.

I don't know how it is in other parts of the world, but in the EU every resident has an insured amount of up to EUR 100 000 in case the bank goes bankrupt or becomes illiquid. On the other hand, we can only remember Mt.Gox and all those hundreds of thousands of BTC that have disappeared and the fact that customers have not yet been compensated.

It is wrong to state that Bitcoin has absolute security over money in the bank, because you ignore the fact that millions of that same BTC are in the custody wallets of large crypto exchanges - Coinbase alone has about 1 million BTC.

If we look statistically, people have lost billions of worth of BTC over the years because they believed the wrong people or didn’t know what they were doing - maybe it would have been better if they kept the money in the banks.

I have to agree. One of the reasons why the banks will remain relevant even in the age when each person is given the opportunity to be his/her own bank is that people are poor keepers. Some may develop an expertise on it but many will terribly fail. Doubtless, many would rather entrust their wealth to a bank than keep it all by themselves. Should the bank fail, insurance is a basic requirement, and one gets his/her money back. Keep your wealth in Bitcoin and it takes only one false move on your part and everything will be gone.

[dataispower]

The ability to move large sum of funds through blocks without being interrogated by any governmental agencies or by any means your identity will be leaked is the class Bitcoin has attained no Banking sector can achieve. The beautiful trust which exists between Bitcoin transactions makes it crystal clear that your transaction can be verified through the open ledger system whether or not the party is lying or not. The whole idea of Bitcoin is beautiful and can be trustworthy.

[worldofcoins]

Many of us learn knowledge related to Bitcoin on bitcointalk to achieve cognitive growth. In my opinion, ideas behind Bitcoin are more important than the technical architecture of it because it is thought that guides actions. Trust is a respectable characteristic of Bitcoin, which has reached the highest level of trust. Why?

Architecture is the most important part of any software and anything in general and Bitcoin tbh has a good architecture too good for 2009 and if I'm not wrong then the White paper for Bitcoin was released before 2009 and only a few people invested.

Satoshi must have had taken a lot of things into consideration and I would say he's an Extroverted Intuitive person.

[DooMAD]

While I'm pretty sure it's not necessarily considered a real word yet, people often refer to "trustlessness" in relation to Bitcoin.  In effect, you're only placing trust in the laws of mathematics and certain assumptions made about game theory and aligned incentives.  You have the option to place trust in others via the guise of third party services, but this isn't something forced upon you.

[noorman0]

I have to agree. One of the reasons why the banks will remain relevant even in the age when each person is given the opportunity to be his/her own bank is that people are poor keepers. Some may develop an expertise on it but many will terribly fail. Doubtless, many would rather entrust their wealth to a bank than keep it all by themselves. Should the bank fail, insurance is a basic requirement, and one gets his/her money back. Keep your wealth in Bitcoin and it takes only one false move on your part and everything will be gone.

The centralized system business model can be designed in such a way and can still be changed at any time, so that it attracts more attention than what the decentralized system itself offers. Say CEX where they offer the best level of security, guaranteed refunds, prizes, etc.

That's why people still like to pawn their trust to third parties. Bitcoin will not truly reach the highest level of trust until holders stop dealing with a centralized system.

[Smartvirus]

Having that pioneer trustee, to have stand the test of time and still doing well in the area comes with certain advantages you know. One of those is trust. Bitcoin has been able to hold ends together for a longtime now despite the fact that, it is the original, its been able to keep to some level of secrecy as to who Satoshi Nakamoto is and its supply stays constant. Bitcoin haven't violated on most of its principle guides and as such, it has earned the trust of the people. Coupled with the fact fact that, most coins that exists in the cryptosphere today are trying to emulate Bitcoin, living one to think or believe that bitcoin is the only perfect cryptocurrency that is!

[nelson4lov]

~Snipped

How do you understand Bitcoin's solution to trust? I'd like to know your ideas.

Satoshi's original plan was to create a trustless digital economy where anyone can participate in without necessarily trusting any other party but their own intuition. As someone who has used traditional financial services for a long time and ran into a couple of issues while using these services, Bitcoin does provide an innovative way to make use of the same services being provided by financial institutions and this time, without the intermediaries and you don't get to deal with trust issues with the conducting party. Its just seamless just as financial services should be. The fixed supply is a huge plus too because we just know what we're getting into (no inflation when all BTC is mined).

[Darker45]

I have to agree. One of the reasons why the banks will remain relevant even in the age when each person is given the opportunity to be his/her own bank is that people are poor keepers. Some may develop an expertise on it but many will terribly fail. Doubtless, many would rather entrust their wealth to a bank than keep it all by themselves. Should the bank fail, insurance is a basic requirement, and one gets his/her money back. Keep your wealth in Bitcoin and it takes only one false move on your part and everything will be gone.

The centralized system business model can be designed in such a way and can still be changed at any time, so that it attracts more attention than what the decentralized system itself offers. Say CEX where they offer the best level of security, guaranteed refunds, prizes, etc.

That's why people still like to pawn their trust to third parties. Bitcoin will not truly reach the highest level of trust until holders stop dealing with a centralized system.

But until individuals grow full financial independence and are capable enough to maintain a certain level of personal security in such autonomy, centralized institutions such as banks will remain to play a significant role in the financial life of a person. Probably to some, they could more easily sleep at night knowing that their wealth is kept in a safekeeping institution than if they are keeping it inside their personal wallet.