Questioning Bitcoin Trust

Bitcoin is a virtual currency, a protocol and a software based on cryptography-based decentralized architecture that interrogates this trust, disables intermittent third parties. Bitcoins are in lower case when referring to the currency, and Bitcoin when referring to the protocol and software.

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But the administrative control of the whole process is also necessary. In today's economies, this relationship is governed by banks in between. Trust is at the heart of this relationship. The parties to the relationship should rely on the central bank or other banks in between.

However, Nakamoto states that this trust is often exploited. We trust the central bank that money will not deteriorate, but history is full of instances. We need to trust banks to keep our money and transfer it electronically, but they use it to create credit balloons.

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We also trust banks that they will not reveal our identities and respect our private life. Although we know that banks do not deserve this trust, unfortunately, monetary relations through communication channels have to rely on the banks and governments in spite of all the weaknesses involved.

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