We hear about bitcoin; cryptocurrency and we wonder how this affects my business or my life? Some people have jumped on this wagon of new currency riding a wave of luck or innovation, but what is Cryptocurrency?
Bitcoin started from the global economic downsize of 2007-2008, according to the LA Times, it was created by an individual or group using the pseudonym Satoshi Nakamoto. Bitcoin is the first cryptocurrency to gain global position. Bitcoin “billed as a digital version of money that didn’t depend on banks and was impervious to government interference”. The system would accept anyone to create transactions with anyone in any place for any reason.
Today there are many cryptocurrencies that rely specifically on a software called “blockchains”. “Blockchains records and store all the information, they use cryptography mathematics that turn information into an unbreakable code, which prevents in the case of bitcoins, on any asset tracked by a blockchain from being duplicated or spent more than once, although they can still be lost or stolen, “says Jon Healey.
Transactions for example on a public blockchain such as bitcoin are open to the public, but the owners are encrypted. Cryptocurrencies are worth whatever the market says it’s worth. The value comes from what people are willing to pay for it. There is a cap on bitcoin for example, it ensures scarcity. The more demand their price will go up. There have been dramatic price swings and other drawbacks, so why would anyone use bitcoins or similar ones, because as Healy says, crypto coins can be spent anonymously, like cash but at a distance. You can read the whole article here:
NEW-WBC, Program Director