Bitcoin is not erasing or reversing monetary evolution. On the contrary, it is the evolution of money. Normal evolution takes ages to complete. Think of evolution of plants or animals, but bitcoin is changing the monetary system in seconds. The definition of money is a medium of exchange. One that is portable, fungible, divisible, unforgeable and widely accepted. The medium of exchange slowly changed over several millennia, from various kinds of metal to obsidian to gold all the way to fiat currency.

The first currencies were backed by their scarcity, their uniqueness. They had intrinsic value. Gold cannot serve as a widely used currency these days. It is portable and scare, but hardly divisible or suited for instant transfers. Checking the purity of gold is going to take some time. There are risks involved in the transport of gold and it is impossible to track.

So, fiat. Fiat currencies have been backed by various different things – most notably gold. They all are attempts to establish confidence and trust in the currency. The problem with fait is: there is one type of trust that makes the whole system work, namely trust in the government. This however, seems to be misplaced. Fractional banking and the monetary policy of the last few decades have created a house of cards. One that is bound to come crashing down sooner or later.

The evolution? A crowd-sourced, unhackable, un-inflatable, unforgable and immutable currency came into existence. It creates a division between government and money supply, which is good for business and consumers. It is provably scarce, capped in supply and completely fair. It is in the hands of the people – of all people and built on a massive network of bookkeepers and auditors. It is built on math and indisputable trust.

Satoshi did not change the system as radically as you might think: the value of the bitcoin is based on a different kind of trust. Not the one in one entity as the government or a bank. The trust in the collective, in a formula that is ubiquitous, redundant and constantly monitored and vetted. It takes out the trust in the intermediary and places it in peers in the network. Trust in one or trust in the collective – I know where I would put my money on.