Economy for Digital Realm Bitcoin Blockchain Technology

Amit Ahuja

“Bitcoin is exciting me as it shows how cheap it can be. Bitcoin is better than currency as you do not have to be physically in the same place and ofcourse for

large transactions, currency can get pretty troublesome” – Bill Gates

Top 10 Facts, Myths & Theories on

Bitcoin Blockchain Technology

Bitcoin Basics

Referred to as Distributed peer-to-peer digital a cryptocurrency and a payment system. Bitcoin offers a 21st century alternative to conventional

banking. A decentralized virtual currency, exchanges are made via software rather than the traditional wallet without any supervisory

central bank/ authority

Buying with Bitcoins

Over the years more and more commodities have become available to bitcoin holders. Perhaps the most high-profile acceptor is Virgin Galactic,

the suborbital spaceflight company. Other notable users being Lamborghini, Spice-Girl MelB

The numbers

The creation of coins must be limited for the currency to have any value. New coins are slowly mined into existence by following a mutually agreed-upon set of rules. With ~15M bitcoins in circulation, every

transaction is verified using an extremely complex algorithms, run by large network of mining computers competing against each other. Fact: The network of mining computers estimated 250x more powerful than

the world’s top 500 super-computers combined

The Value

Given the virtual nature of bitcoin, their value might seem indecipherable and volatile. However, in general, the value seems to be increasing. In 2013, a bitcoin topped 1000 USDs in value and briefly was

worth more than an ounce of gold, its value has fallen since

Bitcoin and Bankruptcy

While there are winners, there are inevitably losers too. In 2014, Mt. Gox, the one-time largest bitcoin exchange was forced to file bankruptcy protection due to possible hacking that cost them in excess of $450M

Banning the Bitcoin

Due to its aversion to traditional banking and absence of government regulation, bitcoin is outlawed in many countries and is heavily frowned

upon by others

Know your limits

The number of bitcoins in circulation has been capped to 21Million and the production is scheduled to be halved every 4years to ensure the value

is not lost. This means that the supply will run out by year 2140. As it stands today, over a century before the deadline, ~64% bitcoins are

unused in respective accounts, appreciating and depreciating with time

WikiLeaks

The notorious WikiLeaks relies heavily on this futuristic form of finance. In mid-2011, the non-profit whistle blower began using bitcoins to process

donations as regulated companies wouldn’t deal with them

Silk Road

The equally infamous website Silk-Road used bitcoins. A black market trading site that specialized in legal drugs and goods as well as some

more reputable products, it provided browsers with an indemnity and made its money using bitcoins but not anymore

Bitcoin Beginnings

Satoshi Nagamoto is the alias behind Bitcoin. Launching the software in 2009, they passed majority control to scientist Gavin Andreson in late 2010. The real identitiy of the founder remains unknown. It has been

speculated that electronics giants of the likes of Samsung, Toshiba, Nakamichi and Motorola are behind it but it remains a mystery for the

modern world

References

• Watchmojo.com • Cnbc.com • empoweredpartnerships.wordpress • extremetech.com • e-magination.co.za

& many google images