There has been a lot of talk concerning Bitcoins lately. Nobody seems to know really what they are, whether they can be used as real payment, and why (in the case the latter is true) my local grocery stores still don't accept them. Perhaps the most pressing issue is how this even can be legal, since it for all intents and purposes are money being made in your own basement.
Inshort Bitcoin is a peer-to-peer digital currency that is not issued by a central authority. The concept was introduced in a 2008 paper by a pseudonymous developer known only as "Satoshi Nakamoto". Who he really is has not yet been unearthed.
In 2012, The Economist reasoned that Bitcoin has been popular due to "its role in dodgy online markets," and in 2013 the FBI shut down one such market, Silk Road, which allowed the sale of illegal drugs for Bitcoins. So far, seizing the funds have come at no or little success, since the FBI apparently just dont have the knowledge of how to seize electronic currency.
Inshort Bitcoin is a peer-to-peer digital currency that is not issued by a central authority. The concept was introduced in a 2008 paper by a pseudonymous developer known only as "Satoshi Nakamoto". Who he really is has not yet been unearthed.
Bitcoins are increasingly also used as payment for legitimate products and services. Notable vendors include Wordpress, OkCupid, Reddit, and Chinese Internet giant Baidu.
The creation of Bitcoins are done by so called "miners". These are computers engaged in the upkeep of the Bitcoin transaction system. However, new Bitcoins are created at an ever-decreasing rate, and once this reaches zero, the number of Bitcoins will remain static. At this point the sole incentive for miners will be the transaction fees.
So why is this important? Well, at the current moment, judging by the rate of transactions and production, the Bitcoin will overtake the USD in amounts used by 2069. That is, by 2069 more people will be trading in BitCoins than in USD. In June of 2013 a single Bitcoin was worth approximately $128.
Still confused concerning Bitcoins? Luckily the Bitcoin community recently released a video explaining the whole situation. Watch and enjoy the birth of possibly the next gen currency.
The creation of Bitcoins are done by so called "miners". These are computers engaged in the upkeep of the Bitcoin transaction system. However, new Bitcoins are created at an ever-decreasing rate, and once this reaches zero, the number of Bitcoins will remain static. At this point the sole incentive for miners will be the transaction fees.
So why is this important? Well, at the current moment, judging by the rate of transactions and production, the Bitcoin will overtake the USD in amounts used by 2069. That is, by 2069 more people will be trading in BitCoins than in USD. In June of 2013 a single Bitcoin was worth approximately $128.
Still confused concerning Bitcoins? Luckily the Bitcoin community recently released a video explaining the whole situation. Watch and enjoy the birth of possibly the next gen currency.
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