For those that haven't heard, there is a new "cash of the internet" called Bitcoin. The system is an open-source protocol that produces "coins", which are long chains of code that can be sent instantaneously peer-to-peer.
Each coin and transaction is verified on the master network, so they can't be counterfeited, created or destroyed. And their use is mostly anonymous.
The advantage to users is that they're transmitted instantly over the internet without the necessity of a credit card/debit card/PayPal, etc. The advantage to merchants is that the only fees they're charged is perhaps a 0.5% exchange fee when they want to convert them to dollars.
So, yeah, this thing could really take off. The current price of one Bitcoin is about $200. Only 21 million will ever be created.
Bitcoin - Wikipedia, the free encyclopedia
Each coin and transaction is verified on the master network, so they can't be counterfeited, created or destroyed. And their use is mostly anonymous.
The advantage to users is that they're transmitted instantly over the internet without the necessity of a credit card/debit card/PayPal, etc. The advantage to merchants is that the only fees they're charged is perhaps a 0.5% exchange fee when they want to convert them to dollars.
So, yeah, this thing could really take off. The current price of one Bitcoin is about $200. Only 21 million will ever be created.
Bitcoin is called a cryptocurrency since it is decentralized and uses cryptography to prevent double-spending, a significant challenge inherent to digital currencies.[9] Once validated, every individual transaction is permanently recorded in a public ledger known as the blockchain.[9] The calculations required to authenticate Bitcoin transactions are completed using a network of private computers often specially tailored to this task.[10] As of May 2013, the Bitcoin network processing power "exceeds the combined processing strength of the top 500 most powerful supercomputers".[11] The operators of these computers, known as "miners", are rewarded with transaction fees and newly minted bitcoins. However, new bitcoins are created at an ever-decreasing rate.[9] Once 21 million bitcoins are distributed, issuance will cease.[9] As of August 2013, approximately 11.5 million bitcoins were in circulation.[12]
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