bitcoinvancouver

The GoTo Site for all things Bitcoin in Beautiful Vancouver British Columbia Canada

What is All this Business about Bitcoin? by Brian Donohue

What is All this Business about Bitcoin? by Brian Donohue

Bitcoin is a digital crypto-currency. It’s distributed. It’s peer-to-peer, meaning that is controlled by the people that use it. There is no central authority controlling it. There are no international transaction fees. There are – for all intents and purposes, though some will cry foul at this – no rules as far as currency regulation goes. I am told you can get an actual BitCOIN and that there is even a Bitcoin ATM somewhere in Canada, but the actual currency, the actual money so-to-speak, is a chain of digital signatures that represent some fraction of a Bitcoin.

bitcoin

Whether you like it or not, Bitcoin is an incredibly convenient mechanism for money-laundering and for criminals seeking to conduct untraceable financial transactions on the Internet.

Sure, you can buy any number of legitimate things with Bitcoins. In fact, the number of legitimate goods that can be purchased using Bitcoins increases nearly every day, but you could also buy that stuff with traditional currency – albeit sometimes with the hassle of conversion rates and transaction fees. What you can’t do so easily with traditional paper currency is buy an illicit hacking tools, weapons, or conceal gains made selling drugs, stolen information, or other legally dubious things on the Internet, all of which is made easier by the digital currency.

Bitcoin emerged in 2008 as the research brainchild of an individual or group operating under the pseudonym Satoshi Nakamoto. When it first came to hold value, one Bitcoin was worth a small fraction of a dollar. Now a dollar is worth a small fraction of a Bitcoin. Many people are baffled by what a bitcoin is, how it holds value, and just generally how it works.

I have addressed the first question. Bitcoin is a digital crypto-currency. Instead of having a printed bill or a minted coin, you have a cryptographic string of characters. How a Bitcoin holds value is a complicated question, but not any more or less complicated than addressing how a Euro or a dollar holds value. The value of any currency increases and decreases based on a vast variety of market forces. Such is also the case with Bitcoins.

 
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This entry was posted on November 9, 2013 by and tagged .

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bitcoinvancouver2013@gmail.com

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