Key Messages
Uncovering The Mystery Behind Bitcoins: A Comprehensive Guide Explaining What They Are, How They’re Used, And What To Know About Investing In Them
If you’re interested in learning about Bitcoin, then The Age of Cryptocurrency is for you.
This book provides a unique look at the real stories behind Bitcoins and how it works.
Learn how the first Bitcoins used to buy pizza are now worth over five million dollars!
Discover the fascinating ways people use Bitcoin, from hiring hitmen to spending close to one hundred million dollars on this virtual currency.
Revel in the details of this digital age as you uncover more secrets about how millions of people around the world trust and use this technology as a means of exchange.
Explore the security measures in place and why these controls make it less vulnerable to attack.
In addition, understand why companies are investing large sums into Bitcoin and whether or not it is a good choice for your financial future.
Money Has Value Because We Share An Agreement That It Can Be Used As A Medium Of Exchange
When it comes to money, the concept of value and trust need to go hand in hand.
Money can’t just be any old item – it needs to have a shared agreement of its use as a medium of exchange.
That’s why gold and silver coins were used in money’s earliest days; they had intrinsic value that everyone could agree upon.
The Micronesian islanders’ currency system is further proof of this.
While using enormous stone wheels called fei may seem unusual by today’s standards, their system worked because the Yapese agreed that ownership (or partial ownership) of these stones could be used to settle debts.
A society needs trust in its money for it to have a controlled supply of currency – simply put, if anyone can create new money, then it’ll quickly become devalued and worthless.
This kind of hyperinflation was seen back in 1920s when Germany tried to pay their huge debt following the Versailles Treaty by printing more and more bills; eventually people began using them as wallpaper which caused the economy to collapse due to people losing faith in the monetary system.
Ultimately, for a functioning economy, money needs to based on a foundation of trust for it have any real value in the eyes of people who use it.
The Rise Of Bitcoin: How One Man’S Pizza Purchase Proved That Real Exchange Can Happen With Cryptocurrency
Bitcoin can be used as money because people have come to trust its value – just like “real” money.
When people saw that goods and services could be bought with it, the trust in Bitcoin was further strengthened.
This trust is reflected in the rising price of Bitcoin- in 2013, the value shot up by 800% from $129 to $1165.
Another reason why it is accepted as a unit of exchange is that it does not have a centralized bank or any central authority managing its use like other currencies do.
It instead relies on being mined by computers to create Bitcoins, keeping them from spiraling out of control due to indefinite and careless supply.
This has been proven through examples such as Lazlo Hanyecz’s purchase of two Papa John pizzas using 10,000 Bitcoins which were worth only $41 at the time.
The same amount became equivalent to around 5 million dollars by August 2014.
All this goes to show that even though Bitcoin cannot be seen or touched physically, it can be part of an agreed-upon exchange system because enough people believe in its value.
The Unique Bitcoin Network: How It Works To Safely Record And Transfer Money
When it comes to Bitcoin mining, it all starts with a complex computer problem.
Once the problem is solved, a reward of Bitcoin is given to the miner and a new puzzle is generated.
To ensure that only one reward is given, the number of available Bitcoins is limited to 21 million and will be completely mined by 2040.
The transactions made in the network are registered in a public record called the blockchain.
Every Bitcoin owner has an address — an encrypted number which uniquely identifies them and allows for their ownership balance and transaction history to be tracked.
So whenever you buy something with Bitcoin, such as a cup of coffee from a cafe that accepts it, there’s a request sent from your address that’ll deduct an 8,000th of a Bitcoin from your account in order to make the purchase.
The blockchain ensures that no one can spend the same Bitcoin twice and also verifies each transaction with its protocol so that it’s secure.
Bitcoin: The Middleman-Free Solution That Brings Power Back To The People
Using Bitcoin removes all middlemen and keeps both the seller and buyer anonymous.
This decentralizes the financial system, giving power back to individuals and putting it out of reach of corporate influence.
Gone is the need to depend on big banks and institutions when you’re making a payment.
Transactions now become faster, cheaper, and far more secure with no intermediaries involved skimming off their take.
The blockchain serves as the distributed ledger that records every transaction completed on the Bitcoin network.
It helps distribute trust, ensuring no single party holds absolute control and that all participants remain anonymous at all times.
Moreover, when compared to debit or credit cards where payments have to go through an elaborate process with often days going by before vendors can receive their money; Bitcoin transactions are completed near-instantaneously and with significantly lower fees than what they charge.
When you look at all these advantages offered by Bitcoin, it’s hard to resist its potential for helping create a more democratic economy in which regular people can enjoy financial freedom without corporate interference or monopoly.
The Rapid Expansion Of Bitcoin Creates A Boom In Investment And Innovation
Bitcoin has quickly become a global business, with investors and innovators pouring huge amounts of money into the industry.
It’s estimated that more than 1 billion dollars was spent on constructing ‘rigs’ specially designed to mine Bitcoins between April 2013 and April 2014.
Plus, the processors used for Bitcoin mining are three million times faster than when it first began in 2009.
This means that manufacturers can’t keep up with the increasing demand for super-fast computers which has created an environmental hazard due to their power-hungry nature.
Despite this, however, communities devoted solely to developing Bitcoin projects are forming all across the globe – one example being 20Mission in San Francisco founded by Jered Kenna in 2012.
Achievements within these hubs include MaidSafe (which lets users rent out their free disk space) and ZeroBlock (an app that displays current Bitcoin prices).
At first investors were reluctant to invest in Bitcoin-related projects but now they are more willing to pour their venture capital into them – according to Coin Desk surveys there has been an 86 million dollar increase injected into startups related to Bitcoin between 2012 and 2013.
It’s obvious that BTC is here to stay, making vast contributions both economically and technologically on a global scale!
Bitcoin: The Key To Financial Independence And Empowerment In The Developing World
It’s clear that Bitcoin could have a huge, positive impact on the developing world.
For instance, take Fatima, a mother of five living in a refugee camp in Mali.
Mali is one of the poorest countries in the world and neither she nor her husband can access a bank account.
Before Bitcoin, this meant they had to send money via cash – which could be easily taken away from them when it was transported or delivered.
But now that phones are becoming more accessible worldwide, Fatima can use Bitcoin to securely and quickly send and receive money as she pleases – without any fees or risk of theft.
Plus, women like Parisa Ahmadi in Afghanistan can make some extra money through blogging and movie reviews, paid out to them securely with Bitcoin – all without needing access to traditional banks or payment methods.
This is just one example of how Women around the globe are gaining economic equality with this innovative cryptocurrency technology.
Bitcoin has already begun empowering people all over the world who don’t have money in banks by giving them more financial freedom while also allowing them to store their money with greater security – allowing more people to escape poverty altogether.
The Downsides Of Bitcoin: Volatility, Difficult To Control, And Criminal Use
The Age of Cryptocurrency has highlighted the drawbacks that come with Bitcoin.
Despite having an abundance of benefits, it still has many weaknesses and is challenging to regulate.
Gavin Andersen, the chief scientist at the Bitcoin Foundation and a developer behind Bitcoin’s core software, experienced this firsthand when a bug was identified which had to potential to create fake transactions and overpayments.
Quickly after the issue, hackers found out about the loophole and caused problems for Mt.
Gox, one of the major Bitcoin exchanges in the world.
In just one day after its revelation, Bitcoin’s value decreased rapidly by $168 dollars!
One reason why legislation enforcement finds it tough to keep up with Bitcoin is due to its distributed network design, meaning that all points in the network are connected with each other, making it impossible to shut down.
There aren’t any CEOs or CTOs who can be held accountable either since Bitcoin is decentralized and free from centralized control.
Unfortunately, cryptocurrency also gets utilized for illicit activities like selling and trading drugs on Silk Road – an anonymous online marketplace utilizing Bitcoins as its currency.
With buyer’s identities hidden, authorities have difficulty investigating such crimes.
Wrap Up
The Age of Cryptocurrency provides a comprehensive look at the world of cryptocurrencies.
The key message here is that anything can hold value if people agree it does, and Bitcoin is a prime example.
Although this digital currency choice hasn’t been around for long, its trust as a valid form of payment only continues to grow as more use cases emerge for it.
It has the potential to dramatically shake up our global economy by providing anonymity and cutting out intermediaries.
Even taking into account their current volatility and certain adverse aspects, cryptocurrencies are certainly worth considering for their revolutionary influence on our financial system..
