When you first heard the word “Bitcoin” you probably asked yourself “What is Bitcoin? and why is everyone talking about it?” Bitcoin is most commonly referred to as a digital currency but to stop there would be a big mistake. What ultimately gives Bitcoin it’s value is it that it is information or bits of information that are capable of doing things that the current financial system does not or cannot do.
What is Bitcoin?
What makes Bitcoin unique is its design. It is a peer-to-peer network that operates differently than any other kind of software we’ve seen before and allows for some interesting new advantages over existing global payments networks. Some of the advantages discovered so far are…
– Minimal fees
– Global payments
– Accounts cannot be frozen and assets cannot directly be seized
– It is all inclusive without any requirements to use it
– It is information that cannot be duplicated
Since bitcoin is very young, there are going to be many more applications that haven’t been discovered yet.
What Bitcoin is NOT
There is a lot of bad information about bitcoin on the internet so we think it is important to educate people not only bout what bitcoin IS but also what bitcoin is NOT. It’s important to note: Bitcoins do not exist in the real world as coins. They are just digital coins or “bits of information” that exist on a public open-source ledger. These bits of information cannot be duplicated and that’s why they are currently most widely used as a form of money but we are learning that Bitcoin is going to be so much more than that.
Where do Bitcoins come from?
In order to fully understand Bitcoin, you will likely need to understand a little bit about where bitcoins come from. The process to bring new bitcoins into existence is called “mining”. The reason the term mining is used is because Bitcoin possesses all of the same monetary qualities of gold and in many ways is far superior than gold.
Bitcoin has even been appropriately nicknamed “Gold 2.0” by Facebook Executive, Chamath Palihapitiya and “Gold for Nerds” by Steven Colbert.
What is Money?
The concept of an internet money is nothing new. Nobel Prize winning economist, Milton Friedman claimed that the internet was an amazing new means of exchange and that some form of reliable e-cash was going to change the way the world works. Well, over the past couple decades there have been a number of attempts to create such a reliable form of e-cash but in 2009 Bitcoin become the first operating proof of concept for such a system. Since Bitcoin is the first reliable e-cash, it helps to know what money actually is and how it works. When you view money as technology that allows society to organize much more complex solutions to much more complex problems, you begin to understand how Bitcoin’s open-source and programmable aspect has potential to completely change the way we solve problems and conduct global trade.
Bitcoin is “The Blockchain”
Bitcoin is mostly recognized as a digital form of money right now but it is actually going to be so much more than just money. The most cited and likely the most important element of Bitcoin is that it is the proof of concept of a new form of cryptographic information protocol called “The Blockchain”. This blockchain technology is already creating changes in global finance and shows no signs of slowing with some of the largest banks in the world now running blockchain experiments. Bitcoin is only the beginning of a new way of managing and exchanging information just like the internet was back in the early 90s. Money is just the first application but many experts predict that everything from insurance contracts to stock markets to ridesharing and even voting will be affected by blockchain technology.
Thank you for taking the time to visit our campaign. We hope you have found it to be helpful and shed some more light on this new and exciting technology. If you think that this page was helpful, please share it with someone who you think would find it helpful and if you would like to do more than that, take a couple minutes to take action with Bitcoin.