Some people people say that Bitcoin, 2009, is the currency of the Internet made by an unknown person using the alias Satoshi Nakamoto.
According to Bitcoin Offical Webpage“Bitcoin is an innovative payment network and a new kind of money.”
Price of Bitcoin spiked yesterday after Bitcoin NYSE Trading halt. As of today one Bitcoin is around $269.
In this article will we explore the past, present and the future of the intangible currency. But first is first, let’s check out these Bitcoin basics by Benjamin Wallace of wired.com.
How They’re Made
Bitcoin’s economy consists of a network of its users’ computers. At preset intervals, an algorithm releases new bitcoins into the network: 50 every 10 minutes, with the pace halving in increments until around 2140. The automated pace is meant to ensure regular growth of the monetary supply without interference by third parties, like a central bank, which can lead to hyperinflation.
How They’re Mined
To prevent fraud, the bitcoin software maintains a pseudonymous public ledger of every transaction. Some bitcoiners’ computers validate transactions by cracking cryptographic puzzles, and the first to solve each puzzle receives 50 new bitcoins. Bitcoins can be stored in a variety of places—from a “wallet” on a desktop computer to a centralized service in the cloud.
How They’re Spent
Once users download the bitcoin app to their machine, spending the currency is as easy as sending an email. The range of merchants that accept it is small but growing; look for the telltale
Customized version of the 60GH/s Single SC with LED fans, produced by Butterfly Labs, the first Bitcoin Hardware manufacturer to develop 65nm ASIC’s for mining Bitcoin.
The interesting thing about Bitcoin is that you can use this intangible currency to buy real goods on the Internet. Bitcoin is mostly known for its use of the Dark Web through browsers like Tor but you can use it for certain mainstream websites such as Reddit, BitTorrent, OkayCupid, WordPress and much more. (Check these out http://www.bitcoinstore.com/) I’ve even been in a few Lyft cabs and seen them advertise that they accept Bitcoin.
Though a lot of people still remain in the dark about what exactly bitcoin is, how to mine bitcoins and what they are used for it is slowly gaining popularity.
What does this mean for tangible money? Right now, nothing. Bitcoin isn’t popular enough nor is it efficient enough to use in everyday settings. I have no doubt that in the future tangible coins and bills will cease to exist, but I don’t see that day coming anytime soon so keep your wallets, folks. Still it’s important that know that there is another currency which exists and thrives in the same hardware that most of us use every day. This currency can be harvested and used (though you better get ready for a high electric bill).
So what about the future of Bitcoin?
“Bitcoin is a classic network effect, a positive feedback loop. The more people who use Bitcoin, the more valuable Bitcoin is for everyone who uses it, and the higher the incentive for the next user to start using the technology. Bitcoin shares this network effect property with the telephone system, the web, and popular Internet services like eBay and Facebook,” said Marc Andressen, co-founder of venture capitalist firm Andressen-Horowitz.
Bitcoin is changing the modern economic system and it has a lot of promise for the future. From its unfathomable reach to its safety – Bitcoin is pseudonymous and virtually exempt from fraud, therefore it is much safer than using credit cards – I see a bright future for the intangible money.
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