notices - See details
Notices
RR
Ron Rimkus, CFA (not verified)
14th January 2015 | 4:42pm

Jason, perhaps I wasn't as clear as I should have been. Technically, you are right about the miners and blockchain. The miners serve the role of verification. My point is that the success of the blockchain means that trust between two parties does not have to be indemnified by a third party. So, a person in Chicago can sell a used iphone to a person in Zimbabwe, say on Ebay, and trust that the money has been transferred. This circumvents the credit card companies, wire transfer companies, etc. Bitcoin removes financial intermediaries from transactions. Also, the blockchain and miners are decentralized, it prohibits the accumulation of [significant] market power. Thanks for your comments!