Looking at Bitcoin as a value transfer system.

Bitcoin vs Cash has been one of the many hotly contested topics in the bitcoin space over recent months. You may believe or support the notion bitcoin should take over the world by collapsing financial institutions and or governments.

You may want bitcoin to remain underground and the sole domain of faceless basement dwelling iGansta’s receiving iDrug orders on their iPhones. Some may want bitcoin to just go away.

Whatever your position or perception of bitcoin, it remains an ingenious solution to an age old problem: Exchanging value between 2 parties, safely, securely and quickly

dollar billsBefore bitcoin the closest we have come to partially solving the problem is the dollar bill.

I grant you it has many flaws and it is controlled by the US government, but the fact remains a $100 bill is pretty much a guaranteed method of payment anywhere in the world, but lacks the sophistication needed from a 21st century value transfer system.

Enter bitcoin, a unit of account that has almost all the common positive properties of cash money, gold, precious stones and probably any other mechanism that has ever been used to transfer value.

Bitcoin vs Cash Money in the real world

Cash is King! Well, sort of….

Cash money is a very good solution and allows great personal freedom, it does however have enormous drawbacks:

  • Expensive to produce
  • Expensive to transport and secure
  • Expensive for Banks to process and administrate
  • Can be forged
  • Highly vulnerable to money laundering
  • Value decided by one Country

Bitcoin has all the positive properties of Cash money but with some added bonuses:

  • Impossible to forge
  • Incredibly cheap to produce vs Cash money
  • Inherently secure
  • Cheap to process
  • Complete personal freedom
  • Easy to acquire and transport
  • Transparent
  • Value decided by global community
  • Not controlled by any single entity

Thinking logically about bitcoin vs cash money

Adam rents a room from Gina for R115 per week.

Cash scenario 

Adam would have to go to the bank every week and withdraw the cash. This would mean that Adam would probably have to get a taxi, which has a net result of spending cash so that he can draw cash, to pay his rent. Not only does this way of doing things take up some of Adam’s time but he actually has to spend money to put him in a position where he can spend his own money…..this happens at the most basic level of existence.

Bitcoin scenario

Adam requests the equivalent of R115 in bitcoin from his bank to his bitcoin wallet,  using his mobile phone, and then within minutes sends the bitcoin to Gina.

Whilst this is not a very scientific comparison, it clearly illustrates the logic that bitcoin is simply superior in every sense to cash money.

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