1. Super Cash: Permissionless, Peer-to-Peer (P2P) Electronic Cash

What:

  • Bitcoin is a Digital Bearer asset, meaning you can exchanged it person to person, just like cash (physical dollar bill/coin), only digital. It’s truly yours and no one else’s
  • As a digital bearer instrument, Bitcoin is permission-less. Anyone can use Bitcoin whenever, wherever, and however they want. You don’t need an ID, passport, or bank account to earn, spend or receive bitcoin. It’s your money. Use it when you need it!
  • Bitcoin is digital cash, so every transaction is pretty much “off the books and under the table” to an extent
  • It’s exclusive to you and only you, because you have the secret password to use that digital gold as you wish

How:

  • Bitcoin works like emailing a photo, but the sender doesn’t keep a copy.  When you send someone Bitcoin from your digital wallet, it goes directly to their digital wallet
  • Bitcoin can only be used by the owner (YOU!) of the cryptographic private key (or your secret password) which controls the funds. Basically, cryptography keeps your money safe so only you can spend it
  • Bitcoin doesn’t reveal anything about you when you use it. Someone could see the public key address (or destination) behind the payment, but nobody knows it’s you.
  • This pseudonymous nature (again, thanks to cryptography) gives people privacy, autonomy, and certainty in their transactions. Just think of it like tipping your bartender with a $20 bill, *but in super-secret-ninja mode*

Why:

  • Today’s financial system is controlled by large institutions and governments, acting as middle-men, who make it really hard to digitally send money anywhere, for anything.
  • Bitcoin enables you to truly protect your identity. With Bitcoin, there’s no credit card number that malicious actors can collect in order to steal from you. In fact, it’s even possible in some cases to send a payment without revealing your identity, almost like with physical money. 
  • It exists independently, and doesn’t rely on a middleman/third parties, making it easy for us to directly exchange goods and services in a free, global economy
  • Bitcoin gives you total financial autonomy. Nobody can tell you what you can/can’t do with your money.
  • You can opt-out of the broken financial system (which btw tracks all your financial activity) whenever you want
  • You have the power and freedom to simply memorize your private key (password), and store you life savings in your brain to take with you and use literally anywhere in the world… You’re 100% in control and unstoppable 

Decentralized 

What:

  • Bitcoin is a distributed network where nobody controls it, making it the first and only, truly decentralized, digital currency.
  • Bitcoin totally bucks the current financial system by running on a P2P, distributed, and decentralized network, powered by the users’ activity and cooperation 
  • There is NO single point of failure in Bitcoin. (Remember Bit-Torent? Well it’s like that, except instead of sending music files, you’re sending money)

How:

  • Just like the internet, instead of being in one specific place, Bitcoin spreads across a network of nodes (or computers running Bitcoin’s software) that talk to each other all around the world. You even have the option to run your own node. Think of it like setting up your home router, but it’s also your bank that lets you automatically route payments and audit the economy’s money supply 24/7
  • Payments are processed by miners (special computers in a global competition of finding new bitcoins) and broadcasted openly and publicly on the blockchain, a distributed public ledger/database: AKA Time Chain. Think of it as a hybrid of a public bank statement, and a calendar. 
  • The Time Chain keeps track of who holds what Bitcoin and records the transfer of funds from one address to another (shoutout Peer-to-Peer). This ledger records every bitcoin transaction ever made. Each “block” in the blockchain is built up of a data structure based on encrypted Merkle Trees. This is particularly useful for detecting fraud or corrupted files. If a single file in a chain is corrupt or fraudulent, the blockchain prevents it from damaging the rest of the ledger.
  • Btw, you get to keep your own copy of the ledger, so if bitcoin ever did crash, you got  your own backup to fire up and pick up where you left off. You can literally reboot and kick-start the entire world economy from your bedroom…
  • Bitcoin’s fully distributed, peer-to-peer network also means that if someone tries to stop your transaction, they fail unless every one else reaches consensus and says it’s ok (which would never happen. Basically impossible)

Why:

This quote pretty much sums it up perfectly…

“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts.”

-Satoshi Nakamoto, creator of Bitcoin

  • Today, we’re forced to trust institutions with our money; that they’ll keep it safe and sound. We rely on these clunky, expensive, inefficient middle men behind the scenes just to make our money work (most of the time, if we’re lucky…)
  • Our dependence on centralized third parties like payment processors and central banks puts us at risk of hacks, fraud, theft, and censorship
  • Bitcoin’s decentralized technology was the way out of this broken financial system where in an economic crisis, governments rescue banks and failing corporations at the expense of the people by taxing them via inflation of the money supply
  • in order to have/keep a good money, it must be censorship resistant with no mi. In Bitcoin, no one/thing can stop you from using it, nor steal it from you. It’s Un-confiscate-able
  • Bitcoin is the safe-haven alternative to central banks. In Bitcoin, YOU are your own bank.