Create binavc.md

_drafts/binavc.md

@@ -0,0 +1,50 @@
+--- 
+layout: post 
+title: Bitcoin is not a Virtual Curreny 
+---
+
+# Bitcoin is not a Virtual Currency
+
+_October 2013_
+
+Bitcoin is not a virtual currency, calling it so would be an
+huge underestimation of the power of it and would mislead us
+about the changes it will cause. Bitcoin is a decentralized 
+and virtual proof of ownership. Currently the asset it virtualizes
+is the bitcoin currency (XBT). Let me clarify this sentence by 
+giving few definitions.
+
+## Virtual
+
+Virtual means that the proof of ownership of the underlying asset
+can be transferable using internet, without dealing with physical
+items. 
+
+## Decentralized vs Centralized
+
+If there as to be a third party other than the sender and the 
+receiver, It is called centralized. However if you can transfer 
+the ownership without the help of the third party, It is 
+decentralized.
+
+## Layers of Virtualization of our Financial System
+
+Next, let me very shortly explain how currently our financial 
+system deals with the buying power a.k.a money which is an asset.
+
+## Buying Power - Money
+
+Money is a measurement of buying power.
+
+## Currency
+
+Currency is a scale of buying power created by governments.
+
+## Cash
+
+Cash is a physical asset that helps us to prove and transfer the
+underlying currency. It is printed by the government. 
+
+## Banks
+
+Banks are another layer of virtualization on top of the currency.