Quote from: Satoshi
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. Their massive overhead costs make micropayments impossible.
A generation ago, multi-user time-sharing computer systems had a similar problem. Before strong encryption, users had to rely on password protection to secure their files, placing trust in the system administrator to keep their information private. Privacy could always be overridden by the admin based on his judgment call weighing the principle of privacy against other concerns, or at the behest of his superiors. Then strong encryption became available to the masses, and trust was no longer required. Data could be secured in a way that was physically impossible for others to access, no matter for what reason, no matter how good the excuse, no matter what.
It’s time we had the same thing for money. With e-currency based on cryptographic proof, without the need to trust a third party middleman, money can be secure and transactions effortless.
A generation ago, multi-user time-sharing computer systems had a similar problem. Before strong encryption, users had to rely on password protection to secure their files, placing trust in the system administrator to keep their information private. Privacy could always be overridden by the admin based on his judgment call weighing the principle of privacy against other concerns, or at the behest of his superiors. Then strong encryption became available to the masses, and trust was no longer required. Data could be secured in a way that was physically impossible for others to access, no matter for what reason, no matter how good the excuse, no matter what.
It’s time we had the same thing for money. With e-currency based on cryptographic proof, without the need to trust a third party middleman, money can be secure and transactions effortless.
The Most important part about Bitcoin is that it is a system with no central authority. This leads to the following advantages:
-No Trust in 3rd Partys required - Full control of your own money.
-Payment freedom. --> Nobody can just stop you from sending or receiving payments. Also no one can refuse you to "open an account" like banks do with people with bad credit ratings.
-Transparent and neutral --> The Rules are clear. Visible for everyone and could only be changed if the community agrees. There are no special rules for special people. Everyone operates by the same rule, no matter his financial status or importance.
Of course, there are also disadvantages:
-Low acceptance --> It's new and has to develop. There are not many acceptance places yet.
-Volatility --> The exchange rate is heavily fluctuating.
-It's still an experiment --> It's not finished and the future of it is unknown.
