bitcoinvancouver

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Are Bitcoins the digital currency of the future? by SYD BOLTON

Are Bitcoins the digital currency of the future? by SYD BOLTON

How quick would you be to buy “digital” currency? If you’re the type of person that still keeps cash underneath your mattress, bitcoins may not be the currency for you. They could, however, be the future of digital currency or at least play a large role.

In 2008, an unknown person or persons calling themselves Satoshi Nakamoto created a paper describing the concept of bitcoins, known as a cryptocurrency. It uses a decentralized system and cryptography to prevent double-spending, and once spent the transactions are permanently recorded in a public ledger known as the blockchain.

The computing power that is available to decrypt and validate the transactions is supposedly more than the combined computing strength of 500 of the world’s most powerful supercomputers. The individual operators of the computers that make up this network (known as miners) are rewarded with transaction fees and newly minted bitcoins. The issuance of new bitcoins is on a decline, however, as the specification has called for a limit of 21 million bitcoins. There are almost 12 million in existence today.

 
Bitcoins created by enthusiast Mike Caldwell are seen in a photo illustration at his office in...Bitcoins created by enthusiast Mike Caldwell are seen in a photo illustration at his office in Sandy, Utah, Sept. 17, 2013. REUTERS/Jim Urquhart
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This entry was posted on November 4, 2013 by and tagged .

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bitcoinvancouver2013@gmail.com

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