Bitcoin is a digital currency which aims to deal away with all the problems we have when paying for things online. You may feel the system we have is pretty good, but everything we buy today has to go through a bank or a credit card company. Who take a cut of the transaction, and who rely on our trust they will do everything right. After a while, those payments start to build up. And adding to that a security.You have to trust your credit card company to keep your details safe. Many people have tried to workout for a paying system without a middle man, but then there’s another problem. How do you prove you have payed for something or even that you have that money at all without someone vouching for you?
It is so serious to a point that it has a name: “Double Spending Problem”. Then in 2008 a solution was offered by an unknown programmer by the name of Satoshi Nakomoto. Nakomoto left a paper on a popular cryptography blog which proposed a system of currency that solves all the previously mentioned problems. So instead of a bank or a credit card company recording all your transactions, all of the transactions will be transparent for all the users at the same time. Therefore, it will be very easy to notice any person who tries to cheat and his transaction will be then rejected.
No one: user, government, or bank can force a fee on the payment or control its flow. At the end of the day, we will be having an easier, yet quicker and cheaper way to make payments locally or internationally. So this is bitcoin, and it has already started to have an impact on people’s lives. Within month of the proposal, it was being used to buy and sell goods internationally.
As you might have heard, there are problems. While some are profiting from getting involved early, others are losing out from this young market. And people are finding companies to buy out lots of bitcoins. As stated by the journalist Melvin Draupnir, bit coins is designed to have a limited amount ever in circulation, that might cause problems down the road. There’s so much uncertainty around bitcoins. Some people genuinely think this is the future, others are terrified it could destroy our economy. But all sides, nevertheless, agreed that a similar architecture might somehow workout. If we can trust a digital currency to work without the middle man. Then the way the world economy functions could be transformed for the better.