DAVID PERRY – May 12, 2013
“…OK, so you know how once upon a time there were gas station attendants who would pump your gas for you and then eventually we all realized it wasn’t a very difficult job and learned how to do it ourselves? And how a long time ago making fun video content or taking a good picture was something that required lots of skill and expensive equipment but now we can basically all do these sort of things? Well Bitcoin is what happens when a bunch of my fellow geeks realized that the stuff the banks are doing isn’t really difficult or complicated. All they’re basically doing is keeping a ledger of how much is in which accounts and allowing or denying transactions based on that ledger – maybe that was tough to pull off in the 70s but it’s pretty trivial today and that’s exactly the way Bitcoin works: it’s just a big distributed ledger that we all have a copy of and a mechanism for making sure everyone’s copies match. Just like modern people think little of filling their own gas tank, some of us think very little of being our own banks.
Of course we also went a step further and realized that the Federal Reserve and other entities in charge of printing money and managing the money supply aren’t doing anything particularly special either (and still they manage to fail at such a simple job) so we went ahead and boiled that in too: the ledger doesn’t keep track of dollars, but is denominated in bitcoins and follows a specific set of rules for creating money. Bitcoin is essentially the collective realization that supposed economic powerhouses are the equivalent to 1950s gas station attendants doing an easy and unnecessary job that we’re all capable of.”