Also, if cash takes a physical Form that appears to the digital world to be incompatible, it has a massive advantage that is often forgotten. Cash can be exchanged without financial Intermediaries. This property can also be used to digitize?
We are in the 21st century. Century arrived and the digitalisation continues to spread. This means that it handles more and more transactions online. Music we buy is no longer in the record store, but rent via Streaming services. Even for physical goods, we are more likely to buy in Online shops and pay – of course – digital.
The physical Form of money, the cash, advances further and further into the Background. Sweden is one of the pioneers, with Well over half of all transactions take place with cash in a digital Form. This is especially useful. Finally, one does not need heavy wallet around with them to shore, but only a piece of plastic – a card. In addition, it takes in the case of transactions no exchange of money. Some of the Online Banking application files the purchase in addition, yet automatically according to category.
A cashless world is not easier? Why do we need those annoying paper bills and heavy coins?
Anonymity in payments
At first glance, digital payments are straightforward. However, missing on this first glance, the complex infrastructure that is hidden out of sight behind a digital payment. This quiet machinery, it is noticeable only at a closer Look, or if she goes in the knee.
The fundamental difference between a cash and a digital payment is, in fact, that there is a need for a payment by cash to any other financial Institution. Digital payments, however, require a middle-man. This intermediary has access in the transactions of the customers.
The privacy allowed by the cash, by credit card and Online payments will be lost. There is always at least one observer.
Money as a control system
The original function of money, Medium of exchange, has been in the 2o. Century solid “advanced”. Money is now also to a control system. This is mainly due to the financial institutions, such as (Central)banks and payment service providers such as Visa and MasterCard.
On the one hand, banks to centrally control the money supply and the purchasing power of money. On the other hand, means men are watching the cash flows of the customer. In addition, financial institutions are able to censor payments, accounts freeze and grumblers from the economy, to exclude.
In contrast, the use of cash does not require a Declaration of consent of an invisible observer. With cash each pay.
The essential question of the control of money is now: “Who has the Power to decide what is allowed and forbidden?”
Crypto-currencies: The anarchist answer
The White Paper of Satoshi Nakamoto begins with the words:
A pure Peer-to-Peer Version of electronic cash would allow Online to send payments directly from one party to another, without the need for a financial institution as an Intermediary.
The thought of Satoshi embodies the spirit of the anarchist Cypher-punk movement: No one should have the Power to decide what is allowed and prohibited. Because this Power will inevitably be abused.
Satoshi Nakamoto described in his White Paper a technical solution to the Problem of middle men in the digital payment world. The result is Bitcoin, the first crypto-currency.
Crypto-Currencies: Cash 2.0
Bitcoin & co. are offensive to the established financial accounting. Crypto-currencies escape the institutions which have been fought for control of the quantity of money and Monitoring the cash flows. In this respect, are crypto-currencies such as cash: The users can deal with one another directly, without a Mediator to need.
In addition, crypto-currencies are digital and bring the convenience, which allows already today, electronic money. This means that you can drag there are no physical coins or bills of exchange must have ready money. They combine the advantages of the world of coins and notes, with the advantages of digital payments.
Fight for Your financial freedom!
The desire of the governments to eliminate the cash and to digitize the payments completely, has nothing to do with altruistic motives. The plans for a fully digital, state-controlled monetary unit comes from the power-hungry Desire that all activities in the economy to control.
System, enemies can be turned on and off by the push of a button. New money can also be by pressing a button created. Who system opponent is and how many units of money the economy needs, is within the discretion of the people at the buttons.
Money for over 100 years, more and more to the control system. Those in power will not be the night of your created Evil deliberately and on their chosen path to change.
As Lord Acton noted:
“Power corrupts, absolute Power corrupts absolutely!”
Satoshi has given us, however, is an Alternative. His invention of the Proof-of-Work based cryptocurrency that has revolutionized the digital payments by making it possible for the direct, electronic Transmission of values. Who uses crypto-currencies, is beyond the government’s control and returns to the positive properties of cash.