Andreas Antonopoulos: Bitcoin is the real electronic cash, and the life of traditional cash is entering the countdown

Andreas Antonopoulos recently spoke about cash and Bitcoin at the Merkle Conference 2016 in France. He explained that cash is now on its last legs and will soon be gone. Cash has been one of the most successful peer-to-peer payment methods for thousands of years. The same cannot be said for electronic fiat payments, which are more of a ‘person to business, to business, then to person’ transaction. These businesses can be banks, payment processors, etc.

Antonopoulos explained some of the problems that small businesses face when accepting electronic payments from consumers. Unlike peer-to-peer cash transactions, electronic payments can be completed in a controlled time frame, within a day, a week, or a month. In the event of fraud or other default, the business owner may never see the money. Not to mention the transaction fees they have to pay, which range from 0.5% to 2% (depending on the transaction model).

As the use of cash declines, people are now at the mercy of banks and payment processors. Permission systems and intervention by companies, governments, and other entities make it difficult for people to be producers, turning everyone into consumers, and destroying communities by subverting transactions between groups.

Cash and Bitcoin are push transactions, where people voluntarily make payments. In contrast, in pull transactions such as bank cards and electronic payments, individuals do not fully control their funds, but rather banks, businesses and governments do. Cash and Bitcoin are also bearer instruments, where value is assigned to the instrument itself. Cash does not represent the issuance of debt, but the transfer of value, and it is instantaneous.

Antonopoulos also hit back at the current backlash against cash, which is considered a favorite mode of exchange for criminals. Citing Satoshi Nakamoto's Bitcoin white paper, Antonopoulos pointed out that Bitcoin is an 'electronic cash', not an electronic bank account, digital debit card or digital payment network. Bitcoin, a digital currency, has all the qualities of cash and is an ideal way to conduct peer-to-peer transactions without interference from third-party institutions.

He reiterated that Bitcoin can do everything that cash can currently do. In addition, Bitcoin can be sent to places that cash cannot currently reach, making everyone a global citizen.

This technology has revived the concept of using money as a form of payment between people rather than between businesses. With Bitcoin, people don't have to worry about their accounts being shut down or their stored funds being used to commit war crimes or to fund people who bomb other countries.

Andreas Antonopoulos ended his speech by linking the core principles of Bitcoin to the French national motto (Liberty, Equality, Fraternity).