So What The Heck is a BitCoin?
BitCoin is a rising form of money called: Cryptocurrency – that is digitized currency. BitCoin only exists online and on hard drives or flash drives.
Bitcoin is a decentralized form of currency where it’s home is in all of the users. This way no one can alter it and the coins a guaranteed authentic.
Unlike normal fiat currency that all countries use today – bitcoin has a set limit on how many coins can be made into existence. This makes more like money than the dollar we currently use as a medium of exchange. However there are some real concerns about bitcoin as well.
You can spend bitcoins at an ever increasing number of places, it is quickly becoming a power player as a medium of exchange. But what exactly is it?
Where does BitCoin Come From?
One of the best qualities bitcoin has is how secure it is. The nature of bitcoin was having an extremely secure decentralized currency that is up to date with technology. You can store bitcoins on your phone, external hard drive/USB drive, on a computer or in a cloud and use them nearly anywhere for almost anything.
But where do they come from? Also how is the number of bitcoins kept low and free of fakes – or dupes? This is where the genius really shines. Bitcoins are produced by “miners”. Bitcoin mining is the process of confirming the transactions that have occurred. This can get very, very complex but in a nutshell every single transaction with a bitcoin is logged and put into a “block”.
To find out more about the mining process just visit the page by clicking above.
Once these blocks are confirmed and sealed into the blockchain those transactions are deemed accurate and can never be altered – because of the peer-to-peer sharing of information everyone would be notified.
What Does Bitcoin Mean for Society?
Bitcoin has a huge potential for us, at first I was majorly concerned about stability however, after extensively studying it I am much more in favor of it.
One of my top concerns as I come from a gaming background was double spending. This means I could buy a couch for say 750mBTC and then go buy a TV with those same coins. I mean it’s online, how could it be safe? Thankfully it has built in checks and balances in it and is extremely secure.
All transactions are checked by miners and the community before they are complete, once complete they are able to be viewed forever and are unable to be altered.
Bitcoin is currency figured out, because it uses technology. Unlike the dollar and other government issued fiat money, bitcoin grows with technology. Storage space is now cheap and small enough to carry around anywhere, we can store it on our phones, on a cloud network, or on little chips that we can carry around.
And unlike fiat money, bitcoin appreciates as it becomes more mainstream. And it is gradually becoming more and more mainstream so expect the price of bitcoins to rise – since there is a steady stream of new ones but also a cap on the total bitcoins ever allowed mathematically.
Of course with bitcoins the risk of them being stolen or lost is a very real threat. While it is secure there is that risk. of course there will always be that risk.