![]() “ Bitcoin’s solution is to use a peer-to-peer network to check for double-spending. Commercial banks with gold while they lend out waves of credit with little to no reservesīitcoin, solves this issue of trusting third parties with your financial autonomy.Central Banks with bonds or treasuries while they flood the market with money.”ĭo you see the similarities? Trusting people with your money has always led to disaster, whether that was: Their massive overhead cost makes micropayments impossible. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. “ The root problem with conventional currency is all the trust that’s required to make it work. Making the liability of outsourcing financial security redundant. ![]() This statement is essentially implying that technology helps humanity become more efficient with their time and energy which dramatically diminishes security costs over time. Digital security when designed well diminishes dramatically in cost over time.” “ Traditional security is costly and risky. In the article “Trusted Third Parties Are Security Holes”, Nick Szabo exemplifies this point here: If you need help setting up wallets or nodes, feel free to join the AmberApp tribe on Telegram and we will be happy to assist you. It’s important to remember that entrusting a bearer asset to a custodian exposes both parties in a situation of significant risk as it is a liability for both parties. This can be a stepping stone for new bitcoiners as they take the time to learn the technicalities of cold wallets or for people who are too lazy to write down 24 words. ![]() “The whole point of owning a digital bearer asset is to be the bearer and own it without exposing yourself to any counterparty risk.”Ĭounterparty risk is simply trusting someone else to custody your asset for you. So when people say “Not your keys, not your coins”(often abbreviated to just “NYKNYC”) what they are really saying is: Bitcoin is the first bearer asset that can be sent instantly, from any continent with the internet to another, all for a fraction of a penny and with no middlemen. ![]() This is similar to gold as a bearer asset, the primary difference is that Bitcoin is digital. It is not a promissory note or IOU of any sort, its value is self-evident, you either possess it or you don’t. “Not your keys, not your coins” is a common expression for bitcoiners, but, what does it mean?īitcoin is a bearer asset, which means the person who owns the asset, has it. ![]()
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