03 Feb [Discussion] We all know Bitcoin is highly decentralized. But how does it compare to other forms of money over time?
I’ve been researching money profoundly (for an article series I’m currently publishing for a Lightning startup I’m interning with), trying to understand how centralization of money evolved over time.
Historically, the overall trend of money has been towards centralization of power. Before money as a concept existed, anyone could barter anything, anytime, anyplace, without any interference. Ultimate decentralization.
Over time, institutions became a necessary complement for barley money and weighted metal, and then went from complementary to fundamentally nuclear with metal coins and fiat bills. This trend towards centralization has been almost a constant over the last 5,000 years or more. Then came Bitcoin…
Bitcoin is decentralized throughout the community of users. Creation and transactions are scattered through a worldwide network of servers to which anyone can join. All you need to participate in the system is to have access to the internet. Institutions aren’t fundamental anymore.
This decentralization might just be what we need in a time were people are tired of having to give up their power to those who they feel don’t represent them. This is an age were we reclaim a freedom that we had long forgotten was even possible. Last week comes to mind with Robinhood going against their users and blocking them from the free market. Bitcoin might just be a shield to protect ourselves from those in power.