Money, what it really is and why BTC could (or not) replace it)

Hello beautifull people, this is a direct translation from spanish of one of My early posts

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The reason why it is so difficult for some people to understand what Bitcoin means is that people do not really understand money, money is not wealth, it is an accounting system used to facilitate the exchange of wealth (The paradox of money is that while everyone wants it they really want what they can buy with it.) Many people reject the fact that Bitcoin is 'data only', but all forms of money are that: information, more precisely, money is a means to transfer information about credible information about the value delivered, but not yet received (or at least not received in the way that a person's needs or wants are met).

To explain it in another way, money is an accounting record. With fiduciary currencies like the Dollar, that accounting record is centralized. And that gives the central authority responsible for maintaining that record an enormous power, a power that history has proven will inevitably be abusive. With Bitcoin that registry is decentralized. And that means that no individual or entity has the power to arbitrarily create new units (causing inflation), freeze (or impound) your account or block a particular payment so that it is not processed. We have already decentralized money earlier in history. After all, nobody can simply print gold. And the "accounting record" of the gold is distributed because the physical gold itself is distributed (in the metaphor they would be "the entries" of the accounting record). But with gold decentralization carries a high price. The physical nature of gold makes it incredibly inefficient for global transactions.
And for this reason Bitcoin is important! It is the first form of money in the world that is both decentralized and digital. It is more reliably scarce than gold and more private and efficient at the transactional level than "modern" digital banking. That's why people are excited about Bitcoin and have the potential to become completely revolutionary money.

In fact it is just an accounting record. It has no other use than recording accounting. It is a database to the bearer: who has the ticket is part of the registry and nobody knows who has the tickets a priori, it is not written anywhere. Its value lies in the inability to be falsified, just as the value of any centralized registry lies in its ability to be unaltered and / or in the trust of those who have written permission on it. Falsifying a ticket is equivalent to having a write-off in an accounting record, for example, "loading" money into your bank account by altering the bank's record.

Bitcoin is special: it is compared to paper money for its apparent need for a third party validating the exchange between parties (ie writing the accounting record), when in reality it is a single record (blockchain, replicated in thousands of computers) in which all we have writing permission and we validate their seats and still retains its immutability, which removes the need for trust and makes it decentralized. That is the magic.

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