Gone are the days of credit cards and cash online now that the shiny new currency bitcoin has arrived on the scene. This new form of currency that is ever changing is the money of the future. With its own ecosystem and users all over the world, no matter how much banks may hate it, people are catching on and it doesn’t seem to be going anyway anytime soon.
Blogger, Tony Diepenbrok gives a short summary of what exactly bitcoins are. Basically it’s an open source currency where people can take part in peer-to-peer (P2P) transactions and it seems to have started about 5 years ago online.
PCMag.com stated in one of their blogs that the way to “mine” or get new bitcoins is that the network will increase the money supply as a geometric series until the total number of bitcoins reaches 21 million bitcoins (BTC). Bitcoin releases a 25-coin reward to the first node in the network that solves a difficult mathematical problem requiring a certain amount of brute-force computation. Everyone in the network is then notified of the solution, and competition for a new block and its 25-coin reward renews. Currently 25 bitcoins are generated roughly every 10 minutes.
A short video looking at ‘Bitcoin’, as a decentralized digital currency explains in detail how bitcoin is made, from where and how it’s being used.
Directed, Designed and Animated by Duncan Elms –duncanelms.com
Written and Voiced by Marc Fennell –marcfennell.com
Bitcoin Explained from Duncan Elms on Vimeo.
And, to stay with the modern times there are apps being made to keep your bitcoin wallet under watch at all times. Coinbases’s app let users buy, sell, send and manage their pool of the virtual currency right from their iPhone
According to Visual Capitalist the reason why people like Bitcoin is that it is decentralized, secure, public, anonymous, digital and stable. To explain:
Decentralized: Not run by one company or organization
Secure: Highly encrypted and virtually impossible to compromise
Public: There is a public ledger of transactions called the “block chain” – the transactions are public, but the parties involved are anonymous
Anonymous: Anonymity and traceability are defined by the user
Digital: They are completely digital and therefore global
Stable: The money supply is predetermined and embedded within the encrypted network
Over 74,000 bitcoins are exchanged every hour so if you haven’t researched them yet now’s the time to get involved and not be left behind. While many markets are still opposed to this new currency, every day more and more are opening up to the idea. With today’s fast-paced internet age by next year we wona’t be looking at any more opposition and it’s best to hop on this Bitcoin train before it passes you by.