The Virconomy is a new and interesting frontier. What makes the e-banking system different from the virconomy can be best quoted from the paper found recently on Ltbcoin.com, best described centralization vs decentralization as a Spider and a Starfish. You see, Spiders have a head and a body that control all the legs that branch out. Think of the tips of legs as the individual assets in an economy. The Body and head are like the Federal Reserve and Central Bank. Now a starfish on the other hand, depicts traits of a decentralized organization. You can cut off portions of a starfish and not only does it survive, but in many cases, it can multiply into two starfish! Decentralized organizations have the ability to be started from small circles of members, educate these members who can then become the catalyst to start new circles of the same nature. This is how Alcoholics Anonymous started. Bitcoin is a starfish because it doesn’t require a bank or central authority to run. There isn’t some Bitcoin International Standards and Metrics Consortium out in the world that regulates the supply and value of BTC, WE ALL DO! Through mechanisms like, Bitcointalk.org, Cryptsy.com, CoinMkt.com, Kraken.com, Bitstamp.net, Cryptocointalk.org, #Bitcoin, #Bitcoin-OTC, Coinbase, and many many other avenues of exchange and communication.
What makes these networks great is the user base and profound amount of knowledge available. This knowledge allows us to turn the model upside down, and as a starfish organization, we have the ability to accept, or reject modifications in the code structure, like what would vs wouldn’t be accepted by the protocol.
One easy question that hasn’t come up but should soon is – “Why should I trust my earned value (hard earned cash) and trade it in for Bitcoin? Why wouldn’t the developer or some heavy holder do something to the code, like an update that steals everyone’s balance?” The answer to that falls back on the great network – that is, the user base who run the protocol software on their own servers and personal computers. They are the underlying clearing houses that our new Virconomy relies on. These servers and computers are updated by the activities of the virconomy miners, a 2ndary set of required users, with the assistance of hardware and software, will confirm transactions as they occur in real time so that the various account balances in the network can be updated in a timely fashion. When I refer to Virconomy, that is the sum of all virtual currency transactions occurring to exchange value capital between users. Participants include the protocol wallet software that holds a p2p ledger and updates balances whenever money is sent or received, and also the data processors which are colloquially called Miners confirm the accuracy and validity of these transactions and balances occurring on the p2p ledger.
By utilizing the p2p structure both the data processor (miner) and the wallet holder (virtual currency holding user) effectively act as a bank and clearing house on an individual level. That means, instead of having 7 large banking systems, and supporting clearinghouses, you can now have millions to potentially billions of participants utilize their own computer resources to participate within this Vircononmy. Outlawing any given cryptocurrency will only reduce the few residents who participate within the country that outlawed it, but that by no means prevents these users from still being able to utilize the system as there are countless other users who provide both services mentioned above to continue onward.
I believe in Bitcoin because it creates jobs through the newly created merchants and startups that work hard to create goods and services that utilize the protocol. I also believe in Bitcoin because it gives Non-profit organizations and crowdfunding opportunities another way to gain contributions with much lower barriers to entry. Most importantly, I believe in Bitcoin because it represents a system that is bound my mathematics to denominate scarcity and requires zero trust to function and operate. Alternatives to cryptocurrency require trusting a government which may or may not have corrupt participants. These are the reasons as to why I believe in Cryptocurrency.
