THE BITCOIN…WHAT IT IS AND WHY YOU SHOULD GET SOMEby Tony H. Myandurbiz
Bitcoin is a decentralized peer to peer crypto-currency, and the first of its kind. It is one of the most fascinating innovations in finance in at least the last hundred years. Bitcoin is completely determined by an algorithm and everything is open-source so there are no surprises. No central agency can control the supply of Bitcoin, unlike fiat currencies or even materials like gold. The world can only ever see a total of 21 million Bitcoins in existence.
Like any new disruptive innovation, Bitcoin has a fiercely loyal core group of supporters and followers who are passionate about the idea. They are the ones who take it forward and spread the idea and take it to the next level. Bitcoin has plenty of enthusiasts who are excited about the idea and how it can shape the future of finance, giving the power of money back to the masses instead of under a central control.
It is not just a passing fad. Bitcoin is here to stay. Miners are gearing up for the best of the best equipment to mine Bitcoin more effectively. Exchanges are investing heavily in the security and efficiency of the Bitcoin system. Entrepreneurs are taking their chances and building great businesses around this idea. Venture capital funds are beginning to support projects that revolve around Bitcoin (Coinbase just raised a $5 million venture fund from some of the best VCs, including the team that backed Tumblr).
There are plenty of scenarios, black swan and otherwise where Bitcoins can become a dominant force in the financial industry. There are plenty of doom and gloom scenarios you can think of where Bitcoin will retain it's worth and value as hyperinflation consumes the fiat currency of a weak central government (there has been at least one recorded case in Argentina where a person sold his house for Bitcoin). However, that's being too pessimistic. Even without anything bad happening, Bitcoin can happily live alongside the traditional currencies of the world.
Created on Dec 31st 1969 19:00. Viewed 0 times.