Introduction:

Bitcoin is a payment system which is truly revolutionary, compared to our current monetary system. Bitcoin fundamentally changes the way we perform financial transactions, and to understand it, we need to compare it to the current monetary system.

Bitcoin is a the revolution of money

Current Monetary System Fragmentation

When you pay for parking, you use metal discs, called coins. When you go to a bar, or restaurant, you sometimes pay in paper bills, especially tips. When you pay your bills or rent, you write checks. When you buy gasoline, you use a gas station credit card. When you go shopping, you use a Store specific credit card, like a Sears Card or a Home DepotCard, both of which can only be used at that specific store. When you travel you pay your bills with a travel card. When you buy a car, you apply for a car loan, or you provide a Bank Cashiers Check or perform a Wire Transfer.

If you want to send money to a friend or relative across the country, you use a Money Transfer Service like Western Union, but first you go to the bank to get cash, you then go to Western Union and give them cash, which they deposit in there account, and then transmit it electronically via an equivalent yo email.

Currency Credit Card System Vulnerabilities

The current credit card system, which designed to solve some of the problems of the monetary system fragmentation design I point out above. However, the credit card system is fundamentally flawed in that you have to provide every person you buy goods or services from, both your credit card number and your authorization code. This gives them the ability to withdrawal funds from your credit card line of credit. These people are then required by the credit card company to keep a copy of your card and your authorization number in a computer database. Anyone who accesses that database can then use your credit card number and withdrawal authorization code to make purchases, illegally. This is very insecure.

Additionally, many purchases that you make with your credit card require a firm of personal identification, name, address and sometimes birthdate or social security number. And this information is also stored in a computer database kept by that company. Overtime you give your credit card information to hundreds or possibly thousands of stores and vendors, and each of them has a copy of your card number, authorization code and your personal identifying data, like name, address, birth date and social security number. This is very insecure.

Bitcoin solves the issue of financial system fragmentation.

Bitcoin by design can be used in all transaction scenarios which currently require cash, coins, checks, store specific credit cards, travel credit cards and general credit cards. Bitcoin can be used for transactions as small as 1/10 of a US penny, and as large as billions of US Dollars.

Bitcoin is a the revolution of money

Bitcoin by design solves the security issues associated with credit cards.

Bitcoin is design do that you account number is public and is displayed to the person your buying goods or services from, and their account number is displayed to you. This number is called your public key or public wallet address. Bitcoin is designed so you enter your withdrawal transaction code into your wallet only and this authorizes payment. No one else ever gets to see that code, and they don’t need to see that code, all they need to see is that you paid them. This authorization code is called your private password or private key.
Additionally, you don’t need to provide personally identifying information like your name and birthdate. Lastly, there is no need to build and maintain a database of account numbers, authorization numbers and personally identifying information.

Bitcoin is a the revolution of money

Bitcoin provide consumer protection

Because by design Bitcoin allows the consumer complete control over their funds, and reduces the risk of theft of authorization numbers, and personally identifying information.

Bitcoin is a the revolution of money

Bitcoin is transparent and traceable

The Bitcoin Blockchain ledger is a record of every Bitcoin transactions from the very beginning of the first transaction. So it’s not a good way to hide money obtained illegally. Money in the form of cash is a much better way to hide transactions.