Think about this for a second. Our trust in businesses, our government, NGOs, and the media continues to decline. When a man dies in one of the most secure American prisons, a material percentage of the country believes that foul play was involved. They don’t believe what the government and media is telling them.
We aren’t talking about a random developing country where corruption is the default state, but rather the lighthouse of democracy and freedom. Absolutely incredible.
So what exactly does this have to do with bitcoin, blockchain technology, or cryptocurrencies?
In my opinion, it is all highly related. We are moving from a world where people are required to trust institutions, to a world where people have the ability to verify everything. This evolution won’t happen overnight, but Bitcoin is the first piece of technology related to this trend that is starting to gain mainstream adoption.
Bitcoin can’t help with the levels of trust surrounding non-financial aspects of governments, the media, non-profits, or majority of organizations in the world. The digital currency can however help address the distrust in a small subsection of the world — financial organizations and finance-related aspects of government.
The alternative system is being built so that individuals aren’t reliant on believing what the government tells them about money, while also reducing the need for placing their faith in profit-driven financial institutions. Instead, the Bitcoin ecosystem is built on a single idea — “Don’t trust, verify.”
This is really, really important. A financial world built on TRANSPARENCY instead of TRUST will usher in new institutions, new assets, and ultimately change the way that money works. But this movement from TRUST to TRANSPARENCY won’t just occur in finance though.
I anticipate that almost every aspect of government, media, and business will eventually experience this transition. Take police body cameras for example — we have reached a point in America where a police officer’s word is no longer taken as fact. We now require many of them to wear literal cameras on their chest so they can record what they’re doing and then we can VERIFY the events later, rather than TRUST the law enforcement officer.
Think of this as policing built on TRANSPARENCY rather than TRUST.
This paradigm shift is just starting. There are not hundreds of examples of it being implemented yet. This will change over time though. In fact, I think we are at the inflection point now.
Bitcoin has created the expectation of TRANSPARENCY rather than TRUST for a small portion of the world population. Over time, more and more people will learn about the benefits of this system and come to expect the same.
The reason for the paradigm shift is simple — a system built on transparency is better than one built on trust. The Jeffrey Epstein debacle this weekend exposed how pervasive the distrust in institutions really is. Thankfully, Bitcoin (and police body cameras) are proving that there are practical solutions to these issues.
The trend of distrust is not going to reverse. It is only going to accelerate. The faster we move to a world built on TRANSPARENCY, the better off we will all be!