Minting Bitcoin, The End of Trustless Currency

When most people think of money, they imagine green paper with faces on it. To be blunt, this is a woefully outdated way of perceiving currency. Most financing these days takes place over digital transactions. Digital currency is not a new concept. Credit card providers and banks have been using this concept for many years. More recently, people are using and mining Bitcoins and other digital currency for free trade. The big difference between a credit card and other digital currency is that someone is keeping track of who holds on to the money behind a credit card. Bitcoin and other digital currency are trustless. The only way to track who owns the coins is by looking in their wallet.

The concept or printing or minting Bitcoin has been played around with for several years. Some financial institutions see this as a fantastic investing opportunity, but this could prove to be the end of most digital currency. By forming a trust, or ledger of who owns the money, digital currency becomes the same as any other physical currency. Anyone who invests in various trade options understands how volatile physical currency can be. The trouble with Minting Bitcoin is that somewhere along the line of transfers and transactions, it’s going to lose value. This issue has plagued physical currency since its inception and will continue to do so as long as the struggle to increase the strength of the economy continues.

Creating physical currency from digital currency is an unsound practice that could spell disaster to the freedom that Bitcoin users are so fond of. What makes Bitcoin and other digital currency more valuable than physical money is the privacy it affords. The only part of a transaction recorded is the receipt of the money, not the origin or any information about the user. There’s no risk of financial data being stolen with digital currency. By printing physical copies of the currency, that freedom is lost. Overall, the idea of minting digital currency is at best a fallacy. Even if the practice is put in place, it won’t last for very long.

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