Why Bitcoin Is Poised To Change Society Much More Than The Internet Did

There is a bitcoin craze at the moment, with prices of bitcoin skyrocketing. Bitcoin is still far from ready for prime time, but as it matures, it will change society’s fundamental operations much more than the Internet did. The net, after all, only allowed people to talk and shop more efficiently. By comparison, bitcoin eradicates the government’s ability to operate.

Let’s begin by looking at what a bitcoin is. It is money. It is a new form of money that isn’t issued by a government. Governments don’t have a monopoly on coming up with things you can trade and barter with, and bitcoin is one such non-governmental barter instrument. The difference between bitcoin and all other such tokens of value that have been invented over the years is that nobody is in control of the money supply, and nobody is in control of the money flow. This means that nobody can start the printing presses to eradicate your savings, and nobody can seize or see your wealth or income. You can think of it as an open-source currency compared to proprietary, state-issued currencies.

There is no central bank. This is a revolutionary concept. People can trade cash at a distance without going through an intermediary. The first time you send the value of a cup of coffee to a friend in India on a Sunday, without any transaction fees, and they have the money instantly, without anybody but you knowing of the transaction, your jaw drops.

This would have been but a curiosity, if it weren’t for the ridiculously strong business case to cut banks and credit card processors out of the sales loop for corporations, which could roughly double the profits in retail sales. This means that there’s a very strong force for universal uptake of this new currency.

As nobody is in control of the money supply (it is set to grow predictably at a slowing rate until 2140), and demand increases with a limited supply, the price for each bitcoin increases. This is what we’re seeing now, as more and more people realize bitcoin’s business potential. Also, there is value in the concept that you don’t have to trust any single person to store or to transfer bitcoin – not your government, not your bank, not Western Union – is something completely new. - Read more here: http://falkvinge.net/2013/04/03/why-bitcoin-is-poised-to-change-society-much-more-than-the-internet-did/