Bitcoin to invalidate the monetary system. Virtual Gold

The basic principle - asymmetric encryption - the same as allowing any information in your computer or mobile phone. Ones and zeros, pluses and minuses. That's all. The technique involves two keys - a public key for others to encrypt with, and a private key to decrypt itself with - creating a link. No inequality, but a "Byzantine consensus" as it is called in the bitcoin realm.

The principle was described in 1998 by Wei Dai in his essay “B-money”. Ten years later, Satoshi emailed out a kind of manifesto, “Electronic cash Without a Trusted Third Party”.

Virtual gold

The main point of bitcoin is to be free from both nation states as the central banks' own definition and market valuation of currencies. Altruistic and anarchic. Selfish and capitalistic. Philosophy, economics, technology and politics. All in one. Away from fiat money: no intermediaries, no side fees, no stooges, no reserves in Washington, no misleading derivatives.

When someone today gives fiat money to charity – part of it is lost because of necessity to pay for transaction. As much is lost if someone sends fiat money to a friend via money transfer companies.

The vast majority of states based their budgets on the financing, thus a deficit, not a surplus cash. More and more states are running a substantial deficit in the public finances after the 2008 financial turmoil, "The Great Recession".

Huge Ponzi scheme

Some instances call bitcoin a "bandit currency". Some say it is "scam" and "bubble" as soon as the price fluctuates. Skeptics say it may be the biggest Ponzi scheme - a kind of financial pyramid. In order to generate real return of capital it used for payments and in this way the whole system is kept alive.

When Satoshi disappeared from public in 2011, around one million Bitcoins has gone from the active market, this amount currently currently has a value of around half a billion dollars. Within the banking industry this situation is called the FRB, Fractional Reserve Banking. Nothing new under the sun.

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