Arachis on Nostr: Three reasons: (1) Banks are companies whereas bitcoin is a whole financial system ...
Three reasons:
(1) Banks are companies whereas bitcoin is a whole financial system and a protocol. Companies do all eventually die, ideas and protocols do not: they evolve and adapt.
(2) A better comparison is between the fiat system, that banks merely apply, and the bitcoin system. The fiat one is centralized and relies on trust; the bitcoin one is centralized and trustless. Trust in a fiat system will always eventually be lost as it is at the mercy of a crisis, possibly self-generated due to its inherent contradictions and weaknesses; A decentralized system, like the internet, is more resilient.
(3) On top of the above, banks have decided to run on fractional reserves, what makes them immensely more vulnerable to any crisis. On the other hand, bitcoin is a hard currency: one bitcoin is one bitcoin.
(1) Banks are companies whereas bitcoin is a whole financial system and a protocol. Companies do all eventually die, ideas and protocols do not: they evolve and adapt.
(2) A better comparison is between the fiat system, that banks merely apply, and the bitcoin system. The fiat one is centralized and relies on trust; the bitcoin one is centralized and trustless. Trust in a fiat system will always eventually be lost as it is at the mercy of a crisis, possibly self-generated due to its inherent contradictions and weaknesses; A decentralized system, like the internet, is more resilient.
(3) On top of the above, banks have decided to run on fractional reserves, what makes them immensely more vulnerable to any crisis. On the other hand, bitcoin is a hard currency: one bitcoin is one bitcoin.