What is Bitcoin Good for? > Digital Property Rules can be exercised without using Violence
- In the physical world, property rights are enforced through violence.
- Gold must be guarded and, when stored centrally in banks, make fraud, mismanagement, or seizure relatively easy.
- By contrast, to defraud or sieze Bitcoin from individuals censors or thieves now must go from key holder to key holder and extort each individual key.
- In the digital world property rights do not have to be enforced with violence.
- Bitcoin’s property registry (ledger) is mirrored on tens of thousands of computers around the world which makes it virtually impossible to steal.
- Bitcoin can be configured to require multiple keys which may be distributed around the world.
Gold can’t do this.
- You can give backup signing rights to people you trust, rather than your bank and government.
- In the event that you get locked out of your house, you may keep a key with family or a neighbor.
- Give people you trust backup keys to your digital money vault.
- Digital property rights apply across national borders.
- People can send money to family that live in other countries.
- People can flee bad governments with Bitcoin more easily than they can with gold or paper money.