The following article is based on an issue you and I and the entire world of commerce faces on a regular basis. It isn’t about any one of us, but it’s about all of us. The problem of trust is imperative to life and our dealings with each other, and in this we will discuss the various types of trust involved with money management and the blockchain.
Having gotten this rhetoric done with, we can finally tackle the question of how trust is formed. The typical trite saying is: “Fool me once, shame on you. Fool me twice, shame on me.” This basically sums up the concept of trust in the real world, but it doesn’t serve to explain just how the principle of trust comes into play in the world of business and economics.
Trust, like all abstract concepts, is best described by what it is not. Trust is not the feeling of anxiety when relying on someone or depending wholly and solely on another to do something important for you. And while trust may be difficult to put into words, it is an essential cornerstone for commerce. In fact, it is a given asset or pre-requisite for every transaction.
We rely on each other greatly in our lives. It is this reliance on people, or groups of people, to fulfill their allotted responsibilities that surmises the concept of trust in the business world. Trust is required by people to perform their responsibilities; a paradox is formed.
Should any person or group of people fail to do their jobs satisfactorily or at all, the trust is broken. The reputation of said persons and/or their firm is diminished. And in business, reputation is worth more than money. Another trite saying: “A good name is worth more than bags of gold.”
Just How Important Is Trust to a Company?
The purpose of the above was to introduce the importance of the principle of trust to a company. Now, we shall look at data that shows the importance of trust to a company.
A Forbes article published on June 20, 2013 identified trust as one of the most essential and important commodities to a business. Further in the article, the importance of trust is emphasised when it is said to be non-negotiable in business.
This goes to show that trust is what helps potential consumers choose your brand over others and shows that trust is a key tool in the fight against competition. Logically, it makes sense; people are arguably more likely to return to a company for services if they were pleased with the service they received the first time around.
Moreover, you can read more about the importance of trust in the business.
A general trend in data seen over the years is that the level of trust and the consumer population for a company show a positive correlation. Perhaps it’s in our psychology, to depend on something that has proven reliable to survive easier, but the fact remains that deep inside, we use our confidence to help make decisions, consciously and subconsciously.
Similar to the Forbes article, another article by Fortune calls trust the strongest currency to a company. Read that interesting piece.
How is the Level of Trust in The Blockchain?
That is a very broad question. For starters, there is a fork in the audience. Because the blockchain is a new innovation, there is a lot of doubt in its efficacy, and this has split the audience into two; those into favour of the blockchain and those against it.
To the experienced investor, one who has used cryptocurrency at a time when it was at peak esotericism and inaccessibility, there is little doubt in his or her mind that the blockchain is a reliable handler of their business affairs. These individuals have used tried and tested the blockchain in its ‘beta’ stage; and while they are not always completely satisfied with the system, they accept it as an exceptionally reliable system. Of course, the majority of these users are still investing, and aren’t all that different from the rest of us; they definitely don’t suit the old veteran archetype we may envision when thinking of them. The point is that those who have interacted with the blockchain not only came away happy with the service they received, a large proportion of them sought further involvement within it, creating their own crypto coins, platforms and services within the blockchain.
But there is another shade to the discussion. As in every major change since time immemorial, the naysayers have the most numbers and hence, or perhaps unrelatedly, make the most noise. Ask any ten people on their views about Bitcoin, or the blockchain if they even know about it, and chances are you will hear the same old things again and again. Complaints about its instability and statements like “Oh yeah, I heard that it lost all its value last year” “I would never invest in it, better to just burn my money and be saved all the worrying.”
Does this mean that trust in the blockchain is low? Well, yes. Overall, people are still skeptical about it. However, this metric is one of the most misleading of all; what really matters is the trust of the users. You see, only the users and investors can give you the inside scoop of the system.
Why Does the Blockchain Need Trust?
Like any other industry, the blockchain is a system of requests and deliverances. And for the number of requests to be high enough to justify the existence of the company and to keep it running, the trust of its users must be high.
No other business depends on trust so much as those involved in the dealing of money. In fact, the blockchain and banks need the user trust level to be extremely high for a proper reputation to be built in order to attract more users.
And the blockchain has proven itself outstanding in maintaining that trust. So, don’t fret before buying Bitcoin with a visa card, and rest assured that your money isn’t going anywhere.