mckontext on Nostr: How a "trustless" monetary system like #Bitcoin actually increases the importance and ...
How a "trustless" monetary system like #Bitcoin actually increases the importance and thus, the magnitude ("where attention goes energy flows") of the element of trust in society is very simple:
Since there is no third party, there is no mediator, and the monetary transaction is final - the two parties transacting with each other must trust each other to a greater degree, because in the case of a dispute there is no one else to turn to.
Hence, the responsibility to verify that your counterpart is trustworthy increases, which also means that the incentive to become trustworthy increases.
Less guardrails > More personal responsibility > Greater need for trust > More trust
Since there is no third party, there is no mediator, and the monetary transaction is final - the two parties transacting with each other must trust each other to a greater degree, because in the case of a dispute there is no one else to turn to.
Hence, the responsibility to verify that your counterpart is trustworthy increases, which also means that the incentive to become trustworthy increases.
Less guardrails > More personal responsibility > Greater need for trust > More trust
quoting nevent1q…ua7hBitcoin Whitepaper by Satoshi Nakamoto
"What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party."
The Bitcoin whitepaper as published in 2008 by the pseudonymous Satoshi Nakamoto.
Download the .PDF at Satoshee (npub1p6y…wx3t):
https://satosh.ee/product/bitcoin-whitepaper-by-satoshi-nakamoto/
#opensourceculture #Bitcoin