Bitcoin Explained and Made Simple
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Bitcoin is a digital currency which aims to do a way for all the problems we have paying for things online. You may think the system we have is pretty good, but everything we buy today has to go through a bank or credit card company who take a cart of transactions and who rely on our trust that we will do everything right.
After a while, those payments starts to build up and added to that is security. You have to trust your card company to keep your details safe. Many people have tried to have an account without that little man. But then, there’s another problem. How do you proved that you’ve paid for something? Or even that, do you have that money at all, without someone vouching for you. It’s so serious that it has a name, the “Double Spending Problem”.
Then, in 2008, a solution was offered by an anonymous programmer going by the name, “Satoshi Nakamoto”. Nakamoto left a paper in a popular cryptography blog which propose a system of currency that will solve all of these fatally problems. His proposal was that instead of a bank or credit card company recording every single transactions in one central ledger, all of the users will record all of the transactions at the same time.
As a result, any attempt to fool the community will be notice and the payment will be rejected. No one user, a government or bank control the fee on the payment or control the flow. The result is a quicker, cheaper and easier way to spend money even across national borders. So this is Bitcoin. And it has already started to have an impact on the people’s lives. Within months of the proposal, it was being used to buy and sell goods although not always to the most scrupulous traders. But it’s not all shady businesses, some shopping sites take it. You can buy pints in London and even pay for your university tuition.
As you might have heard there are problems. Well, some are profiting for getting involve early, others are losing out from this volatile young market. And people are founding companies to buy lots of Bitcoins. But assets are designed to have a limited amount ever be in the circulation that might cause problems down the road. There’s so much uncertainty around Bitcoin.
Some people genuinely think that this is the future; others are terrified that this could destroy our economy. But many from both sides agree that if we could make Bitcoin to work or something like it, if we could trust a digital currency to work without the middleman, then the way the world economy functions could be transformed for the better.