When it comes to complementary or electronic currencies, the minds of many immediately run to bitcoin. In its official self-definition, Bitcoin presents itself as “the first decentralized peer-to-peer payment network.” A tool that works without direct intermediaries and without the control of any central authority, managed by a series of agreements between participants, structured through a code, developed openly by a distributed community.
Wikipedia defines bitcoin as a cryptographic currency and a global payment system created in 2009 by an anonymous inventor, known by the pseudonym Satoshi Nakamoto, who developed an idea that he presented on the Internet at the end of 2008. […] Bitcoin is not classified as a currency but a highly volatile exchange medium by financial experts.
Unlike most traditional currencies, bitcoin does not use a central body nor sophisticated financial mechanisms; the value is determined solely by the leverage of supply and demand: it uses a database distributed among the nodes of the network that tracks transactions but exploits cryptography to manage functional aspects, such as the generation of new money and the attribution of ownership of bitcoins.
Let’s look at the first significant difference with the BAX.
Bitcoin does not have an equivalence relation with the dollar or with another official currency, but it is a tool whose value is variable and therefore very suitable for financial speculation. For example, I can buy bitcoins in dollars and perhaps sell them in euros, taking 5% of the arbitrage between entry and exit. Or I can use bitcoin to buy in debt, make bets against stocks or other cryptos (so I make a profit if someone loses). Some even “lend” bitcoins with interest. All of which, fortunately, can’t be done with BAX.
Also, from Wikipedia, we discover that The Bitcoin network allows for the anonymous holding and transfer of bitcoins. […] The peer-to-peer structure of the Bitcoin network and the lack of a central body make it impossible for any authority, governmental or otherwise, to block transfers, seize bitcoins without possession of the corresponding keys or devalue them due to the introduction of new money.
And here comes a second fundamental difference.
While if I use BAX, each of my transactions is tracked, using bitcoins, I can buy weapons, drugs, or any other illegal product anonymously. Moreover, if, on the one hand, the former is easily tracked by the tax authorities, the latter can allow an attacker to evade them.
The BAX founders point out that Bitcoin is based on a conception of currency as an object, with an issue programmed in time and established a priori and with a fixed monetary mass:
It is a cash system, without a nation behind it, without credit risk, but with all the limits that derive from the choices that have been made! Bitcoin is an object currency, BAX is an information currency. The former is without a main central administration; instead, we operate in the real world and therefore answer to a legal entity, which allows for accountability and trust. In the cryptocurrency sector, “Don’t trust, verify” is often repeated, but how many of them actually know how to verify?
CONCLUSION: They are different things. We are born with a different spirit, a different approach to reality. Our goal in itself is very ambitious: bitcoin wants to replace the dollar. But if their enemy is the dollar, why have they created an instrument convertible into that same currency?