I think in terms of technology Bitcoin is revolutionary but I don't see how it could revolutionize our current economic system.
Bitcoin will revolutionize our current economic system because it gives individuals the ability to opt-out of fiat currencies and transact or save in a currency that bankers have no control over.
The key problem is that it does not address the distribution and accumulation of wealth.
Sure it does. New bitcoins are distributed to the miners that process the transactions, validate the blockchain, and secure the network. This is a brilliant way to distribute bitcoins because it rewards those that are providing value and offers an incentive to join the network and become a miner. With fiat currencies, newly created money is distributed to bankers, politicians, those with political connections, and people that are taking on debt and living beyond their means at the expense of savers. With Bitcoin, wealth is accumulated by those who choose to save, those who invest wisely, or those who provide goods and services that others are willing and freely choose to pay for. With fiat, it's the bankers, politicians, and people with political connections that accumulate the wealth.
In fact the current mining system promotes this. People mine, collect coins, re-invest. Those with more coins can invest more and make more and over time the distribution of coins is unequal with a small percentage of people holding a majority of the coins.
New bitcoins are distributed to miners according to the amount of hashing power they contribute to the network. If you're like me and don't mine, then you can purchase bitcoins that someone else mined at market value. It doesn't get any more fair than that.
The second problem is it's link with FIAT money which it needs for it to have any current real world use. This link makes it a commodity, like gold, and wealthier people always end up with more.
We have to have exchanges because it takes time to transition to a new currency. This sort of thing doesn't just happen overnight, especially when you're talking about the world's reserve currency. We are still in the early stages of transitioning to honest, sound money. It's going to take a while, you'll just have to be patient. As more and more people come to understand the benefits of Bitcoin, more of their transactions will be in Bitcoin and there will be less need to exchange back and forth between fiat.
Gold isn't a commodity. That's what bankers want us to think. Gold is money. There is also an exchange rate between euros and dollars. Does this mean that the euro is a commodity?
If the world were to implement a complete Bitcoin system wouldn't we just end up in the same place we are now? Minority of people holding the majority of Bitcoins? Instead of everything being done with various FIAT it would be done with Bitcoin - sure everything would be much simpler, digital, some things cheaper and less worry about inflation but for all intents and purposes the exact same underlying economic system.
Yes, a minority of people have the majority of bitcoins right now, but over time they will be sold or spent and that wealth will be spread out to others. Clearly, the Bitcoin monetary system is the best alternative out there right now because it in no way resembles the current fiat monetary system that bankers and politicians are so fond of.
It's also important to remember that one of Bitcoin's greatest features is that it is completely voluntary. As of right now, there is no banker or politician forcing anyone to use bitcoins. If there is some aspect of it that someone considers unfair, they don't have to use it. In fact, anyone is free to copy the code, modify it to their liking, introduce a new currency and then let the free market determine it's value.
The mechanisms for creation and transfer are defn unique and do not resemble FIAT at all, agreed. And yes we can call Bitcoin money because as you mentioned eruo usd exchange doesn't mean euro is a commodity.
But what you say here:
New bitcoins are distributed to miners according to the amount of hashing power they contribute to the network. If you're like me and don't mine, then you can purchase bitcoins that someone else mined at market value. It doesn't get any more fair than that.
Yes it's completely fair but it still comes down to capital investment - i.e. investment in hashing power. Even though bankers, politicians and others you mentioned might not be interested in Bitcoin now, mining is going to last another 15-20 years, there is nothing preventing them simply transferring their FIAT into Bitcoin and then using that wealth to enforce or create systems which benefit them.
and here
Yes, a minority of people have the majority of bitcoins right now, but over time they will be sold or spent and that wealth will be spread out to others. Clearly, the Bitcoin monetary system is the best alternative out there right now because it in no way resembles the current fiat monetary system that bankers and politicians are so fond of.
How is it that wealth will be spread to others? What mechanisms? Simply spending BItcoin won't redistribute wealth. Sure the wealthy spend money but because of the large numbers of people who are not 'wealthy' the distribution when spending tends to go the wrong way.
You last sentence is why I put up this post. Is the the best alternative? I agree that from a ease of use, transferability i.e. technical points that it is but i don't think it addresses (and nor does it seem it was designed to as one poster mentioned) the social divide and inequality that the current economic system creates.
