Why have a whole coin when you have a ‘bit’ of it?
So for those of you out there who may have been living under a rock and have never heard of the term ‘BitCoin’, or simply have no clue what it is, I’m here to help.
BitCoin is the world’s first decentralized cryptocurrency.
But if you’re like me and that sentence just confused you more, let’s break that down a little.
So cryptocurrency isn’t a bank. Cryptocurrency is an exchange
It refers to the digital information that is exchanged in return for goods and services.
You remain anonymous. You have nominated an address, but when we say address we actually mean close to 30 characters that are you.
Its global, none of this snail mail. Location is no problem.
They say that the public key cryptography system they use to secure your information is more secure than Fort Knox, but if any of you have ever seen Die Hard with a Vengeance (debatable the best of the Die Hard franchise, I dare you to convince me otherwise) then I don’t know whether you’d call it impossible, (just ask Tom Cruise). But only you have the key. You as the owner of the private key of your address can send cryptocurrency.
BitCoin is only one of many different types of Cryptocurrency’s around on the big bad web. But it’s free for the taking, anybody can download it and start using it to exchange cryptocurrencies.
Once it’s gone it is gone. Just like that text message, you send it to the wrong person. Once a transaction is confirmed there’s nothing anybody can do to save you. Not even Bruce Willis. And that says a lot.
The decentralized part of this cryptocurrency becomes important when we look at making international deals. There’s no fuss in regards to working out exchange rates and extra charges. Not to mention those pesky politicians don’t have a say in it. No interference on their part, no crazy hiking of interest rates. It’s independent and transparent.
The blockchain is what BitCoin uses to store and track its transactions – a digital ledger of transactions if you will. It distributes digital information without copying it. No one single body can control it, and every one can edit it. It’s your cryptographic key that keeps you safe! The blockchain is like your wallet, and with it being decentralized you are the only one in charge of your funds.
Talk about a big database! It continually updates and is completely public. There is no central information to target to get access. It’s allowing all parties to view and edit the transaction without locking anything.
So what do you think?
Is it worth the investment?
Is this the way of the future?