The Revolution of Crypto Currency – The Zen of Monetization #2

witkin represents a way to transfer money anonymously and at almost no cost and since it's an arbitrary currency with no nationality attached to it you're free to exchange it with anyone in the world what is money resources are limited and they hold explicit value to people most resources are physical and such needed to be traded in a physical form diamonds gold coins chickens or bikes at some point it becomes too difficult to physically transact those objects and it's easier to agree collectively on the value of cash instead of gold as we know today this has many advantages credit cards in the modern banking basically gave us another abstraction layer on top of cash there is a centralized system which defines who owned what resources all of these trades are made virtually this is the backbone of why bitcoin is a valid idea what is Bitcoin bitcoin is decentralized anonymous digital only currency that recently received public attention bitcoin was originally developed in 2008 like in any good mystery someone using the alias Satoshi Nakamoto published a paper describing how Bitcoin could work there's a very interesting story about this guy – he must be very smart but he never came forward to claim ownership or any part of the revenue just one minute later in 2009 beakers started being traded where do they come from think about gold you can buy it online it and it's the same concept of Bitcoin you do this by using your computer to hunt for 64 digit numbers but having your computer repeatedly solve complex mathematical puzzles you're competing with other miners to generate the number that the Bitcoin network is looking for if your computer generates its first URIs of bitcoins the Bitcoin system is programmed to generate a fixed number of bitcoins per unit of computing time it is also self-sustaining coded to prevent inflation and encrypted to prevent anyone from disrupting its code in the u 2114 the total number of bitcoins in circulation will be capped at 21 million so how much is a Bitcoin worth today you'll need to google it just type Bitcoin in US dollar for example you could also check it out at brief comment they anonymous Bitcoin apps are anonymous because they are built upon this centralized system the Bitcoin themselves are anonymous the wallets are not here is why the big algorithm create anonymity but there's a recent court cases show if your Bitcoin wallet is indented by and attached to a person then someone can go through and track every transaction you've made bitcoins exist entirely on their own because there is no central infrastructure to shut down you are indented but nothing more then your Bitcoin wallet address a string of randomized letters and numbers there are absolutely no identifying characteristic beyond it for the paranoid dude you can simply create a new wallet for each transaction here are some interesting startups that push the technology forward we are still in the initial phase of bitcoins and there are many challenges and opportunities ahead exchanges wallets merchant services security and more but this is something for another episode until next time eat your vegetables and listen to your partner

You May Also Like