Bitcoin is the first decentralized monetary
system, which is hosted on the web by regular people. 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 is kept. 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 reasons. 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 system is. 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 and bankers. Bitcoin is about to change the world, because
it’s an idea whose time has come.