Liberating Finance: Bitcoin vs. Intermediated Payments | by Dr. Mesut İnan | Coinmonks | Sep, 2023


Dr. Mesut İnan

Bitcoin’s emergence has significantly altered the financial landscape by challenging traditional intermediated payment systems. In previous articles, we’ve emphasized Bitcoin’s potential to eliminate intermediaries — a transformational shift that reclaims the true essence of money as a medium of exchange. This transformation hinges on the principles of liquidity and substitution, which have characterized money throughout its history.

Historically, money has upheld two fundamental principles: substitution and liquidity. Substitution signifies that every unit of a currency holds equal value, ensuring seamless exchangeability. Liquidity, on the other hand, represents the ability to promptly exchange money at prevailing market rates. A robust currency embodies both these principles, empowering holders with control and flexibility.

In our modern world, commerce transcends geographical boundaries, courtesy of advanced telecommunications. This shift has rendered physical cash transfers impractical, spurring the rise of digital payments. However, this convenience often comes at the cost of individuals relinquishing control over their wealth to trusted third parties. Additionally, the transition to fiat money, governed by central banks, further erodes financial sovereignty. As central banks expand money supplies, the erosion of personal wealth becomes an undeniable reality.

Enter Bitcoin — a groundbreaking solution to the discomfort caused by intermediated payments. Bitcoin’s adoption has surged due to its compelling advantages, including minimal transaction costs and rapid payment processing. This digital currency is setting the stage for a future where intermediated systems may evolve to integrate Bitcoin-centric solutions.

As Bitcoin continues to gain traction, it challenges the conventional wisdom of intermediated payments. Its rise signifies a departure from a reliance on third parties, granting individuals greater control over their financial destinies. The evolution of intermediated solutions in harmony with Bitcoin’s principles may well define the financial landscape of the future — an era marked by financial autonomy and security.

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