Spread the love

Bitcoin is a network. It is also a currency and a technology. It’s all these things, you can’t separate them. You can’t just build a blockchain without a valuable currency behind it and currency doesn’t work without the network either.

The Networks

Bitcoin is a dumb network. It really doesn’t do much. It processes transactions. It’s a dumb network for verifying a very simple scripting language. Bitcoin network doesn’t offer any other services. The network doesn’t have automation or any other feature built in. However, this dumb network supports very smart devices.

Continue reading

Money as a Content Type

Spread the love

Bitcoin has introduced a fundamental change in how money is going to be seen in the future. It made money independent from the underlying transport medium. A lot of people think that a Bitcoin transaction has to be transmitted through a Bitcoin network. That’s not true. A Bitcoin transaction has to reach miners and be included in a block of the blockchain. Bitcoin transactions can be transmitted over any form of communication medium.  

It’s worth noting that Bitcoin transaction doesn’t incorporate security mechanisms itself. Instead, the proof of work is provided by the miners and the digital signatures are the security.

Continue reading Money as a Content Type

Bitcoin Design

Spread the love

Even though everybody is talking about Bitcoin nowadays, barely anyone can convincingly answer a question: What is Bitcoin? We’re still learning and still finding new meanings of it. This is because this technology is really new, it’s disruptive, but it’s also an abstraction on a technology that is extremely old – Money.

Just another Abstraction of Money

Bitcoin is the latest abstraction of money. We’ve done abstraction before, but every time we do abstraction of money, society freaks out, thinking that this new thing can’t possibly be real money. The same thing happened when coins were stamped on non-precious metals. People thought that some mere metal could not represent value,  but it eventually did. Paper money was met with even more skepticism. Imagine the change – for thousands of years people used hard precious or non-precious metal for communicating value and suddenly, paper with people’s faces on it is the most valuable thing.

Continue reading Bitcoin Design

Crypto Bubble 2018?

Spread the love

The first days of 2018 were definitely not a smooth ride for the Cryptocurrency market. In just a few days over 300 billion dollars was wiped out from total market capitalization of Cryptocurrencies. Many experts and media outlets were talking about the “Crypto bubble” and it’s bursting. Even though the prices of cryptocurrencies are rallying slowly, the sudden plunge begs the question – is there a Bubble?

Continue reading Crypto Bubble 2018?

Fear leads to the dark side

Spread the love

Well, that was rough. Bitcoin and every other cryptocurrency had a tremendously difficult week. Bitcoin went from over 19 000 to just under 6 000 in just a few days. And the same happened to other cryptocurrencies. Media, as usual, went wild and wrote about `bloodbath’, `massive selloff’ and of course – `bubble bursting’. The experts were talking about Bitcoin falling even further, maybe to 0. There were a lot of `I told you so’ comments coming from the cryptocurrency skeptics.

The problem with the Media and the so-called experts is that they do not see the big picture. They see a sudden slump in the prices and start to panic. They do not understand a thing about Bitcoin. This is the reason why they are almost always wrong. Just a day after their apocalyptic prophecies Bitcoin is rebounding, it is now over 8000. Almost every other cryptocurrency is following Bitcoin’s lead. So, what experts were calling the end of Bitcoin was actually an excellent opportunity to buy them.

The major problem with the old guard of the financial system is that they fear the change. They do not understand Bitcoin and that is why they fear it. This is not a new phenomenon, everything new and big is usually met with misunderstandings, skepticism, and fear. Even giants like Warren Buffet made similar mistakes. Buffet actually advised against buying Google shares, as well as, Amazon shares. He later admitted that this was probably one of his biggest mistakes. The problem was that he did not understand the significance of these companies and the change their products would bring to the market, therefore, he made a wrong judgment.

Apart from failing to understand Bitcoin the experts and the Media also fail to see the big picture. Sure there was a huge downfall in prices these few days, but just a year ago total market capitalization of cryptocurrencies was 18 billion dollars. Now, even after the slump, it’s 381 billion. So, according to the experts, the market which managed to expand by 2 133 % is going to fail because of a few bad trading days.

The point is that the best way to stay informed about the Bitcoin and other cryptocurrencies is to understand it. You have to see a great significance and change cryptocurrencies can bring to the financial world. It is immensely disruptive technology which is bound to change the world. It strives towards the future where financial operations are available to anyone and not just the lucky few who were fortunate enough to be born in a stable country.

Cryptocurrency market is volatile for now because it’s very new. But volatility is not something to be afraid of, it is actually an opportunity to get into the cryptocurrency market. A lot of people made a lot of fortune in the last few days when they saw an opportunity to buy coins while everyone else was panicking.

Long story short, the key is not to give into fear when dealing with cryptocurrencies. Fear only leads to one thing – the dark side.

Is it possible to ban Bitcoin?

Spread the love

There is little doubt that 2018 will be the year of cryptocurrencies. The hype around them is still on the rise and it’s not just bitcoin this time – Ripple made headlines after it threatened the dominance of Bitcoin on the market. Long story short, there is a lot of attention around the surge of popularity of cryptocurrencies.

Continue reading Is it possible to ban Bitcoin?