What is it about decentralization that makes for such an important
financial innovation, and
how does it make Bitcoin different from other currencies, such as the
The United States creates millions of dollars in new money in an effort
to keep up with projected demand each year.
U.S. Currency has not been tied to a tangible asset, such as gold, in
over 40 years. It is backed only by “the full faith and credit of the
After new money is created, the U.S. Treasury distributes it to one of
twelve privately-owned Federal Reserve Banks.
These banks operate without direct oversight from either the Judicial,
Legislative, or Executive branches of government.
The Federal Reserve injects new money into the economy by purchasing
Treasury Bonds, or loans meant to finance the debt of the United
Twenty-one million Bitcoin, set to be released at a predictable rate,
created in 2009. No more coins can ever be issued.
No single institution is relied upon to create or distribute Bitcoin.
Miners discover new coins, and are rewarded with the opportunity to
spend them first.
Unmined Bitcoin are accessible by anyone who commits the time and
energy required to discover them.
Its multiple, consumer driven, points of distribution keep Bitcoin
secure from any single point of failure.
When spent, mined coins will be injected directly into Bitcoins growing