The great cryptocurrency bubble. Will it burst? Will we see billions of dollars go up in virtual flames? While the future of cryptocurrency is uncertain, most scientist and industry experts believe that it wouldn’t. I don’t want to bore you with the engineering details of this technology, but it’s suffice to say that the only way cryptocurrency will be gone tomorrow is if the internet is wiped out.
The likelihood of that is very slim. The real threat however would come from government trying to force some form of regulation on cryptocurrency but that would be as futile as saying the authorities are trying to clam down on Peer 2 Peer piracy. So the way I see it, cryptocurrency is going to be a mainstay and continue to evolve into other innovations I’m not smart enough to fathom. Remember how email replaced snail mail, and how credit cards facilitate payments? Bitcoin and its alternatives are revolutionising the financial market. Banking institutions are forced to evolve or die. That’s the beauty of tech disruption. Now that we have covered how Bitcoin got its value and why it’s just going to keep growing and innovating, let’s take a peek under the hood (this is where it gets slightly technical) and learn about all the other bitcoins alternative that have entered the market. Learn what is Blockchain about and why it’s so damn important in the next part of this video series. As always, please show some love by subscribing to the channel, like this video, and share it with your friends. Everyone needs to hear this. Don’t get left behind.
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This is a million dollar question, or in the world of cryptocurrency, the equivalent is, a 400 Bitcoin question. Who is the inventor of Bitcoin? The answer is: Satoshi Nakamoto But who the hell is Satoshi. The inventor of Bitcoin has chosen to remain anonymous until he recently revealed his identity in Twitter. In fact, he has been in front of very eyes the whole time.
Satoshi Nakamoto is none other than….. Donald J. Trump. POTUS Donald Trump tweeted that he is in fact the brains behind Bitcoin all along. This was a post made on the 1st of April but I only recently found it as I was researching on the origins of Bitcoin for the next series of Beginners Guide to Cryptocurrency. Now, that’s what I call Fake News. The origins of Bitcoin is definitely fodder for conspiracy theorist to tie the creation of Bitcoin to the shadowy organization, the Illuminati. Some people believe there he is in fact, the anti-illuminati for coming up with a brilliant way to go against the fiat currency which for the longest time has been attributed to the illuminati because the of the All Seeing Eye symbol on the US currency. Is he Japanese, is he even a man, or is Satoshi the work of an organization? Breaking down the name, it reveals that “Satoshi” means "clear thinking, quick witted; wise". “Naka” can mean “medium, inside, or relationship”. “Moto” can mean “origin”, or “foundation”. Satoshi went to great length to mask his identity, and even took the effort to use a Japanese anonymous registration service for the Bitcoin.Org domain. He worked with people on the open-source team from the cryptography mailing list in 2009 but started fading out of the community by the end of 2010. The last anyone heard from him was on the 23 of April 2011, when he said that he had “moved on to other things”. The Bitcoin system that Satoshi created was open source. Meaning it’s transparent and anyone in the community could look under the hood. Based on interviews with people that were involved with him at an early stage in the development of Bitcoin, the system was unconventional but thought out very thoroughly. Does this sound like a work of a random programmer who stumbled upon a technological innovation or by someone who deliberately planned this whole thing to happen? In 2015, after years of silence, a 44-year old Australian entrepreneur Craig Steven Wright emerged to say he’s the inventor. He was able to provide beyond reasonable proof that he is indeed Satoshi and experts are buying in on this story. Do you? Something doesn’t add up here. If you are Satoshi and reading this, please leave a comment, subscribe, like and share this channel with the rest of your friends. Where does money get it value from? What makes that piece of 10 dollars in your wallet worth 10 dollars? The short answer is that someone said so, another person agrees, then sooner or later everyone jumps in and agrees with it. In the case of the world’s currency, that value is determined by the central bank and the countries around the world. Enough people believe in it, so it must be true. Yes, I’m over simplifying things, but without getting into a full blown economic discourse, that’s how money gets its value, in a nutshell. The same goes for Bitcoin. In the early days, when Bitcoin was being mined and played around by geeks in the crypto community, it was just a very cool Peer 2 Peer technology just like Bittorrent, except has the intended use to facilitate transaction between two people across the internet.
The very first time Bitcoin had any real world value was when programmer Laszlo Hanyecz called for a pizza delivery with 10,000 Bitcoins. If you base it on today’s (Jun 2017) Bitcoin value, that pizza is worth over 20 million dollars. Of course back at that time, what’s 10,000 Bitcoins other than a bunch of intangible bits and bytes floating around in cyber space? When more and more people started trading digital currency for real world products, suddenly there is a rising awareness that there must be some worth to this digital currency if it can get you real things. What would you have said to your boss if he offered you 10,000 bitcoins 8 years ago instead of your paltry internship salary? Enough people believe in it, that's when the value comes in. I’m willing to bet that probably a quarter of the people who invest in Bitcoin or other cryptocurrencies today do it because others are doing it. Which brings us back to what I said earlier in this chapter. Some of you might be thinking. This sounds just like another ponzi scheme. A giant bubble waiting to burst. Will it? Click on the Part 3 of this video series to find out. As always, please show some love by subscribing to the channel, like this video, and share it with your friends. Everyone needs to hear this. Don’t get left behind. For many of us, the world of cryptocurrency, Bitcoin and altcoin is a mystery. You have heard that it's worth a lot of money and you probably have some questions in your head like, "How can digital currency be worth anything?", "How does it work?", "Is it safe?", "Is this just a fad?" Before jumping into bitcoin or cryptocurrency directly, I feel it's important that we cover some fundamental concepts of money. This will make it a lot easier to understand why Bitcoin became what it is today.
What is money to you? It’s that piece of paper in your wallet that you give to someone in return for a product or a service. There usually is a number on that piece of paper that everyone agrees that that’s what it’s worth. You can get more of these pieces of paper by working for it; by putting your time and dedicated effort to a task, but somehow it always seems like it’s never enough. Dedicated Effort + Time, earns you Money Never enough of it. This is called scarcity. Scarcity is what makes money valuable. If anyone could print money freely, it would have lost its value entirely. So the fact that there’s a bank out there that says there’s only so much money available in the market, makes what you have in your pocket that much more valuable. Scarcity = Value. I think you can begin to see where I’m going with this. In ancient times, before money was invented, people had to barter trade their goods for other goods. Bread for cheese, for example; or cattle for metal. The problem with that is, you can’t walk around with ten loaves of bread ready to trade them with people. So the concept of money as stored value came about. There were in the form of seashells, stones, copper, gold; anything that is scarce, requires dedicated effort and time to acquire would in fact be a universally accepted form of money or currency. That’s how Bitcoin works. The people who designed Bitcoin made it finite. There will only be 21 Million Bitcoins being churned out in its lifetime. In order to mine for Bitcoin, a person has got to specially setup his computer and dedicate it to solving the Bitcoin puzzle which takes a fair amount of time to complete. Once the puzzle is solved, 1of 21 Million Bitcoin is produced. The time taken to mine a single Bitcoin increases as the Bitcoin stockpile decreases. Bitcoin started 8 years ago, so you can imagine at which point of the curve you are at now if you’re thinking of coming on board as a miner. It is widely believed that the Bitcoin will hit its cap in 2140. So now you understand why Bitcoin can be considered money. Now the next question is…. How do we define its worth? Isn’t it after all just intangible bits and bytes floating around in the digital world? What gives Bitcoin the worth it has today? Click on Part 2 of this video series to find out. As always, please show some love by subscribing to the channel, like this video, and share it with your friends. Everyone needs to hear this. Don’t get left behind. |
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