Bitcoin is programmable because it is so easy to write programs to automatically send money back and forth. It is easy to write a computer program to accept an incoming transfer and then break it up and send a piece of it to several different addresses. The bitcoins that get sent around won’t have the fees attached to them like what happens in the market now. It is programmable because it is easy to write a program that automatically distributes funds based on actions the users take while using a computer application.
Visualize this scenario:
A third party wants to accept donations and divide it between several charities. This would be too expensive to do with credit cards and bank transfers. This can’t be completed or verified immediately either. Now someone will be able to donate $0.25 to their favorite 50 charities that they choose with a click of a button. Each of those charities will be able to receive a half penny. This will only count as one transaction on the blockchain since there can be multiple receiving addresses in a single transaction. It is immediately verified that the charitable addresses received the donation. This can all be done programmatically.
That is just one demonstration of how it is programmable. There are many other justifications as to why Bitcoin is more programmable than the USD. The USD takes days for transactions to clear and Credit Cards can take up to months before the transaction is cleared and the funds are available to the parties. Most banks and financial institutions have barriers to allowing money to be so easily distributed and utilized via a computer program.
It is difficult for the international community of businesses and individuals to cooperate financially with the current financial instruments available to them. With Bitcoin, essentially any individual or group of individuals can create and maintain their own bank. They can write the programs to do whatever they can imagine with their bitcoins. The program can send and receive funds with the only limit being its’ creators imagination. That is difficult to do with cash. When you send old-fashioned money, you are really just sending a note for your bank to transfer the funds to them. There is a physical presence of that money that needs to be maintained. There is no guarantee of payment with USD until you get the money physically. The Bitcoin you receive is guaranteed to be yours as soon as the financial transaction is verified by the network and recorded on the blockchain. This allows the money to be easily controlled by computer programs. Bitcoin essentially delegates financing to a powerful computer network where the integrity of transactions can’t be broken.