Bitcoins Explained

1133 Words3 Pages

Movies such as Fifth Element, Terminator, Matrix, and other dystopian futures are highly descriptive in their portrayal of the setting but they always seem to skip over one important detail, the currency in the future. They never seem to take into account the possible change in how currency functions and is exchanged. So, how will our money work in the future? Will it be encoded on electronic tattoos on our arms, will it stay in paper form as it is now or will it become digital.
In 2008 an anonymous user/s by the name of Satoshi Nakamoto published an idea on the internet for an electronic money system. After one year this idea came into existence; Bitcoin. Bitcoin is open sourced - the code is accessible for viewing- and every transaction and deposit is visible for viewing just like in a bank. But unlike a bank, everyone on the Bitcoin network has access to see that transaction or deposit so nothing is a secret. If someone wants to check back to see who gave someone else fifty Bitcoins, they can. In Bitcoin you are connected with complete strangers at all times so you must trust no one, but the system is designed so there is no trust involved by having mathematical functions protect every aspect of the program.
How do I acquire these Bitcoins? Is probably the first question on your mind. Bitcoins can be obtained one of two different ways. One way is to turn real money into Bitcoins at whatever the current exchange rate is. So I can take 1,000$ and if the current exchange rate is at 500$ to one Bitcoin, then I can get 2 Bitcoins. The other way is to mine for Bitcoins. Mining Bitcoins involves using special computer programs to solve math problems and the user earns a proportionate amount of bitcoins as a result. The Bitcoin program...

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...s been used, it has risen slowly, dropped drastically, and recently risen exponentially. If Bitcoin can pull its act together and start provided a more secure and reassured system for the user than it can prosper. Although, if Bitcoin ends up being a large worldwide scam then, it may be wise to pull out all of your money now and better be safe than sorry. Weather you trust Bitcoin or not, it’s still a major advancement in the field of online currency and will most likely further in the creation of more stable digital currencies.
On April 23, 2011 Satoshi Nakamoto, the alleged creator of Bitcoin, emailed to his software developers that, “I’ve moved on to other things. It’s in good hands with Gavin and everyone.” If he thought of a foundation for a completely original digital currency system, than what is he planning on next?

Works Cited

Los Angeles Times, youtube

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