As a cryptocurrency, Bitcoin differs from traditional money in several ways. This virtual currency doesn’t require a person to use their name. Instead, they use a digital wallet address, making it more private. Currently, Bitcoin technology doesn’t protect users when it comes to monetary transfers. What’s more, no government endorses the Bitcoin structure.
Understanding trust as a concept in Bitcoin technology is fundamental. This article discusses trust as a crucial concept in the digital currency and Bitcoin technology economy.
Bitcoin Decentralization
Most people know that Bitcoin is decentralized. That means no central authority or government controls or regulates this virtual currency. But trust is the most challenging concept that most people find difficult to understand. Due to decentralization, Bitcoin doesn’t have a central failure point to prevent the network from recovering. The Bitcoin network makes every user an integral aspect of the ecosystem. Thus, it’s almost impossible for people to collaborate and shut down everything at once.
The Bitcoin network compares to a search engine like Google. Millions of internet users globally access the search engine at once. However, the search engine doesn’t slow down because it runs on several servers. Thus, bringing down the search engine altogether would require tremendous efforts.
But decentralization brings another aspect into the Bitcoin network. Without a central authority, it means Bitcoin users are alone if something goes wrong. Essentially, nobody can reimburse you if something goes wrong. Whether you lose Bitcoin or forget digital wallet keys, you can’t claim anywhere, meaning you might never recover them.
Trusting the Crypto Technology
Economists and monetary sociologists believe that complex trust architecture is the basis of money. Some experts argue that Bitcoin represents the “Uberfication of money.” That’s because the technology behind this virtual currency allows peers to connect and transfer value without mediation.
Bitcoin compares to the internet when it was new. Many people were hesitant about accepting the internet. And Bitcoin is also the same, and the trend might continue before it becomes a mainstream technology. Although platforms like Immediate Edge App allow people to access this virtual currency easily, some individuals need time before they start using them. Essentially, you can purchase Bitcoin on such platforms or sell your holdings to get fiat money.
To accept and embrace Bitcoin, some people need the education to trust the technology behind this digital currency. Nevertheless, some individuals embrace this technology because it allows them to send and receive money faster and affordably than the traditional financial system.
Trusting the Cryptocurrency
In the truest sense, Bitcoin has not become an acceptable currency yet. However, it’s an alternative payment method that people use over the internet. People can use Bitcoin to purchase and sell goods and services. However, its monetary aspect doesn’t have some features of an actual currency.
Many merchants trust Bitcoin but accept it alongside the traditional payment methods. That’s because accepting Bitcoin doesn’t bring extra costs. What’s more, they don’t have to set up additional infrastructure.
Any merchant can integrate crypto payment in physical and online stores. That’s because they can convert Bitcoin to local currencies using online platforms. Thus, you can accept Bitcoin and convert your tokens to cash the next day.
Final Thoughts
Satoshi Nakamoto created Bitcoin to allow individuals to control how they send and receive funds without intermediaries. Essentially, this virtual currency is about managing funds. But trust is a fundamental concept that scares most people in the Bitcoin network. The absence of banks, governments, or other intermediaries implies that Bitcoin users have nobody to report to if they lose their funds. Many people see this as a burden and a reason to doubt the network. Nevertheless, the technology behind Bitcoin takes care of everything by allowing individuals to control their funds.