Bitcoin Is a Fundamentally New Monetary System

 Bitcoin Is a Fundamentally New Monetary System

Any monetary system is based on three components: money supply, money transactions, and money ownership. In a traditional monetary system based on fiat money, it looks like this:

  • Money supply – the amount of registered money in distribution. Money is issued as a result of emission, it simply prints banknotes and mints coins.
  • Transactions are money transfers. Transactions are carried out by trusted financial institutions – banks on the orders of their clients. Accounting for transactions avoids the “double-spend problem”.
  • Money ownership. Banks keep records of the balances of their client’s accounts. Only the clients can manage the money in their bank accounts, banks only fulfill their orders for the transfer.

As you can see, this monetary system is completely monopolized by the state. The state controls the commercial banks where the clients’ money is kept. It can also practice control over all transactions of bank customers. There is a great number of bitcoin mixing services open on the web, and BitMix is a reliable service that you can use to defend your cryptocurrency.

It is important that the state, represented by its institutions, does not have the ability to interfere with the emission process. It does not prevent transactions of Bitcoin users or restrict their possession of money. Thus, a technology has been created that can end the state monopoly on money and its circulation. Of course, due to the inactivity and extreme conservatism of the financial sector, this process will not be fast. But it is running and hardly anything can stop it.

The world is changing and new rules come to replace old ones. Fiat money, as well as the state monopoly on the monetary system, is no exception. In fact, the state has monopolized the sphere of interpersonal relations. After all, the main function of money is nothing more than the establishment of exchange relations between people.

Danny White