Strategic Futurists; Value Systems Specialists


The Basics of BitCoin and Digital Currencies

Wednesday 30 August 2017

Blockchains and Bitcoins? There's some great benefits among all the hype and yes there are risks. Perhaps the single most underrated element of the promise is the inability for any one or a handful of players to manipulate or 'game' the system. The keys to note are:

a) No one person or entity controls the system. Rather the 'block' represents a small chunk of the picture. When those small chunks are connected up, you get a 'chain'.
    aa) In fact there's versions emerging where a single entity DOES control the system and they are digital currencies I'd avoid like the plague!

b) 'Bit coins' are simply digital versions of real coins
    bb) You already spend money 'digitally' via a credit card. The digitial coin currency version is pretty much the same

c) Because no one entity controls the system, and because the system has lots of little chunks that must fit together PERFECTLY like a Jigsaw puzzle, if someone tries to manipulate or cheat the system, the jigsaw will NOT fit together and it alerts people that something is wrong. Transactions get rejected
    cc) This means INSTANT responses to scams or activity that is unusual. This is the EXACT OPPOSITE to what can happen on the sharemarket or LIBOR interest rates set by a handful of banks

And the article 'Bitcoin explained in a way a 5 Year Old can Understand' holds - pretty good way of explaining it

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