The Cryptocurrency Revolution
The Cryptocurrency Revolution - Bitcoin
Bitcoin is a new network consisting of a payment system that uses solely digital money. Bitcoin is a decentralized, direct peer-to-peer network meaning there is no regulation without the cooperation of every user who utilizes the value of bitcoins, the currency (Bitcoin.org). A bitcoin is essentially cash for the Internet; however, as the currency becomes more popular, more physical locations are starting to accept Bitcoins as payment. There are currently 12 locations in the Chicago area that accept Bitcoins with over 1000 physical establishments nationwide that accept Bitcoins (coinmap.org). A Bitcoin is currently valued a little over $818, but like any other currency, a Bitcoin can be broken down into smaller units, specifically up to eight decimal places.
From the user’s perspective, Bitcoin is just like an electronic wallet that allows him or her to send and receive payments just like any other mobile payment method. Bitcoins are exchanged on a “block chain” that contains every transaction ever processed which also allows a user complete control over who where they send and receive Bitcoins.
Bitcoins are created through “mining” which is the process of serving the Bitcoin community. Users can service the Bitcoin community by running software that facilitates transactions in the peer-to-peer network. Users are rewarded because of the computing power they offer to the community, but also have to include confirmation of every transaction performed through a mathematical proof, which takes significant time to generate. In other words, mining takes time, is difficult, and the generation of Bitcoins is regulated so only a certain amount of Bitcoin can be released in a given time period. (Bitcoin.org). The number of issued Bitcoin is halved each year until a total of 21 million Bitcoin are in existence.
Bitcoin is different than e-money services like PayPal because although both are payment methods exchanging a
Bitcoin is a new network consisting of a payment system that uses solely digital money. Bitcoin is a decentralized, direct peer-to-peer network meaning there is no regulation without the cooperation of every user who utilizes the value of bitcoins, the currency (Bitcoin.org). A bitcoin is essentially cash for the Internet; however, as the currency becomes more popular, more physical locations are starting to accept Bitcoins as payment. There are currently 12 locations in the Chicago area that accept Bitcoins with over 1000 physical establishments nationwide that accept Bitcoins (coinmap.org). A Bitcoin is currently valued a little over $818, but like any other currency, a Bitcoin can be broken down into smaller units, specifically up to eight decimal places.
From the user’s perspective, Bitcoin is just like an electronic wallet that allows him or her to send and receive payments just like any other mobile payment method. Bitcoins are exchanged on a “block chain” that contains every transaction ever processed which also allows a user complete control over who where they send and receive Bitcoins.
Bitcoins are created through “mining” which is the process of serving the Bitcoin community. Users can service the Bitcoin community by running software that facilitates transactions in the peer-to-peer network. Users are rewarded because of the computing power they offer to the community, but also have to include confirmation of every transaction performed through a mathematical proof, which takes significant time to generate. In other words, mining takes time, is difficult, and the generation of Bitcoins is regulated so only a certain amount of Bitcoin can be released in a given time period. (Bitcoin.org). The number of issued Bitcoin is halved each year until a total of 21 million Bitcoin are in existence.
Bitcoin is different than e-money services like PayPal because although both are payment methods exchanging a