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Bitcoin is the first decentralized monetary system, which is hosted on the web by regular
It's based on an open source computer program that hundreds of thousands of people are running
on their computers. These computers, often specifically built for bitcoins, are executing
challenging cryptographic calculations by which a public ledger of all the bitcoin transactions
Bitcoin removes the need to use third parties, like banks or credit card companies, in monetary
transactions. That means not only cheaper and faster payments, but also more financial
freedom as governments or banks can't freeze the funds of citizens for political or other
The number of bitcoins has been limited from the beginning so that there can never be more
than 21 million bitcoins. As a result, many believe the value of bitcoins will rise when
more and more people start using them. Bitcoin has indeed been possibly the best investment
of the year because it's value has gone up thousands of percents.
Bitcoin has also become the most valuable currency in the world in just a few years.
When traditional central banks print large amounts of euros and dollars, inflation occurs
in which the value of existing money decreases year by year and the prices in shops keep
getting higher and higher. Bitcoin on the other hand is practically a deflationary currency.
Deflation constantly increases the value of money, thus discouraging unnecessary consumption
and the taking on of debt, whilst encouraging saving. The longer you can wait with your
purchase, the less bitcoins it is likely to cost you.
Most people would rather teach their children to save money for purchases instead of using
large amounts of credit. It is common sense to prefer a monetary system that rewards
saving instead of debt.
There are three different ways of getting bitcoins:
You can buy them directly from bitcoin exchanges and from other people
Or you can exchange them for goods and services
Or you can mine them yourself with a computer
It's worth mentioning that mining has become more and more intensive because of the huge
growth in miners and improvements in their hardware. This has led to bitcoin network
becoming the most powerful computer network in the entire world, which makes attacking
it very difficult.
Many people believe that bitcoin is about to disrupt the monetary system in a similar
fashion to how email changed the way we communicate. It's a technological masterpiece and a demonstration
of how smart technology can solve problems that once appeared impossible to solve.
You shouldn't simply believe this video though, because that wouldn't be smart. Read more
about bitcoin in Wikipedia and other sources and study the system carefully yourself. Many
people that have started out skeptical have been surprised by how brilliant the bitcoin
Bitcoin is more than just a superb way of transferring money and storing value. It's
a new kind of protocol for storing distributed information in a reliable manner. It's the
thought of having a transparent monetary system based on pure mathematics instead of politicians
Bitcoin is about to change the world, because it's an idea whose time has come.