Money is believing, trust. People less and less trust in States. Is it possible to find ways to correlate this mistrust with the raise in power of a new non-state linked money?
I think there is a correlation between the huge success of bitcoin and a mistrust of people in middlemen in general like states bank and payment systems.
Knowing that there is a technology that guaranties you and only you can have access to you money is game changing and disruptive to all middlemen.
I think this question raises an interesting issue, i.e. the relationship between information technology and people's trust. Bitcoin is one side of that issue, which might be related to people's mistrust in the states. The other side of issue is that some mobile payment system (such as Alipay, WeChat, Apple Pay) also tends to centralize all information related to people's deposits, investments, purchases and exchanges. Are people someday going to lose trust in those centralized payment systems? Are the states going to take advantage of that new technology in finance? So, it appears that the design and structure of new technology is vital to win poeple's trust.
Tanks to you: El Mehdi and Feng Frederic, for those very interesting remarks
Bitcoin technology is based on a combination of two new techniques embedded into it - a transaction data encryption, and a new trust mechanism based on independent electronic ledgers (and independent controllers) augmenting and preserving bitcoin multiple transactions information traces over electronic networks. Transaction data encryption is a classic asymmetric encryption scheme based on public and private keys, whereas a trust mechanism based on gaining in independent electronic ledgers augmented encrypted transaction information is a truly revolutionary technique.
Government power and economic activities are based on existing, tested , and legal trust models in every country. The shear fact that bitcoin-based transactions can be practically and reliably implemented outside of those circles of power is an astounding, never been assumed fact that has brought an extreme agitation of general public, professional legal and illegal players, and power circles up to the highest government layers in many countries.
There are several layers of interest in bitcoin technologies - financial circles would like to use this technology to trade derivative financial products, and to use it as a legal currency in the banking systems; governments are curious as to whether the new technology is reliable, secure, and what are the risk/benefit factors in using it in various industries and government agencies. The governments are concerned as to what amount of economic and may be individual power on citizens and enterprises they may lose and forced to yield with the new transaction realities. Many citizens and businesses are interested in financial transactions hidden from government agencies' prying eyes for eliminating income tax duties and concealing credibility information. Criminal world is exited with a new powerful technology allowing for clean money laundering, ransomware, and other currently illegal schemes.
At this point, as far as I understand, there are several major issues in this technology further proliferation:
- assuming the technology can be practically and reliably implemented - what would be use architecture/protocols for all parties to bitcoin transactions (say consumers, legal industrial entities, organizations, government agencies within a country and, with various respective international transaction counterparts across country borders;
- the whole scope of those changes would require a major revision of existing laws regulating financial markets, transaction practices, and evolving possible criminal and civil laws revisions and updates commensurate with potential bitcoin threats;
- the balance of interests is not decided yet because 'practically implementable' assumes the usage of electronic networks own by industries and governments - it is enough power to dictate changes in the bitcoin real schemes that deemed to be necessary. Cyber wars between countries and with the consolidated cybercriminal world actors is another possible issue leading to the bitcoin lagers' security concerns. Those are not clear pictures yet, but they are eventualities that could be intensively tested, when moving forward;
- 'reliably implementable' is a derivative of the bitcoin protocol itself and its actual design, networks, computers, databases, and their software applications integration, along with particular commercialization schemes of bitcoin technology technical implementations.
It is perhaps a problem of the rich people of the rich countries. It is not a problem of a non rich people of a non rich country. No excess money can be earned following the ethics and principles of life.
The excess money made by some unethical way may go to hell!
Personally I feel no interest in BITCOIN matters.
https://news.bitcoin.com/worlds-top-10-bitcoin-friendly-countries/
Money is tending to become electronic, with less and less control in the hands of the poor. In the anisotropic world of finance, It seems to be like a Titanic battle, the riche will ultimately settle their differences, the poor will suffer. So trust, honesty, seems, from the poors point of view, to belong to another world, thus, to bitcoin or not to bitcoin, that is not the question !
Electronic money is going to control the whole world economic system and the local currency is going to disappear unless each government starts to build its own electronic financial system. The time for the use of US currency in world will dcrease with time.
We should stand opposite to the use of international bitcoin and generate national bitcoin for each country otherwise everything will be controlled by others. In order to keep our influence on national economic we have to rebirth new national e-currency which can be used under the licence of each national country boundary.
Tank you for those who contribute to the answers of this question.
Shibabrata, If I may object your answer: I do agree that bitcoin is for the moment "problem of rich people" who may play with morality to the purpose of greed. But as we both know "problems of rich people" may quickly become the one of the poorest who pay the final bill by loosing their small business, their employment or the few that have when things goes wrong.
Len Leonid, I particularly appreciate the time you spend to give us new lights on the question.
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