what is Bitcoin and why is it valuable?
One thing we see being a challenge is answering this question. "what is bitcoin, and why is it valuable?"
Some people think its valuable because its anonymous, some think its a pyramid scheme, and others think the value of Bitcoin is based on peoples faith. They aren't entirely incorrect.
Bitcoin's value comes from the technology behind it. Blockchain technology is cutting edge technology that has revolutionized the world we live in today. Let me explain.
The problem we have with the internet today, as users of the internet, is that we send copies of original data instead of the original data.
For example:
When someone sends a photo through the internet they are sending a copy of that photo, and the original remains in their possession. This is also true with digital money on the internet of yesterday.
When you deposit 100$ into your bank account your digital account shows 100$ in your account, but the bank takes a min of 75% of those 100$ and loans it out to someone else for a interest on the loan. Well now how is it that you have 100$ in your bank account if they just loaned out 75$ to someone else?
These are the problems we have with yesterdays internet. Fraud, but today we have blockchain technology which now you could send the original data peer to peer. Which solves a lot of our problems with the internet of yesterday.
Today with blockchain tech we can not spend our money (Bitcoin) in two places where there is no money. Today we cut out all middle men institutions which saves individuals a lot of money in fees, and empowers the individual instead of the institutions. Today we have a opportunity to own our intellectual property. So you could say our faith in this technology does make it valuable.
What does Banking, Government, The internet of yesterday, and huge companies like Google, Apple, and Facebook have in common?
The people who invested in them, helped build them, grew with the institutions growth. As new people invested their time efforts and money at ground level, the first ones who contributed moved up financially.
Its the same with Bitcoin. If you bought into Bitcoin at 25 cents you will be looking at a huge profit when Bitcoin hits 10 thousand dollars. So yes you can call it a pyramid like the banking system or governments or big corps.
This brings me to my last points.
There will only be 21 million Bitcoin ever. Which gives Bitcoin supply and demand value.
We have taken centralized institutions and started creating decentralized smart contracts, which Bitcoin is the pioneer, the begging of the new world which we live in today.
if you have questions please leave them in the comments below! follow me on twitter @investormilton or facebook at Milton J Guarderas
Great post.
thank you hope you like the next few there is just so much happening now a days!