An Economics Education by Bitcoin – Part I

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For those who do not know Bitcoin, there are better ways to start understanding it than this article; I would recommend Wikipedia to start. This article is intended for those who think they already know what Bitcoin, but have not traded it yet. I was there – I thought I understood it too, but since I dipped my toe in the pond, I discovered an unexpected and rewarding experience. The Bitcoin trade carries so many nuances that it is extremely informative. This has forced me to take into account a large number of integrated functions that are non-pollinated and even unrecognized in traditional currencies. In doing so, it caused me to assign my own values ​​to these characteristics and allowed me to choose the most preferable ways of meeting my different needs – the choices we normally make.

Some aspects of Bitcoin make it similar to fiat money, but it's not cash. There are similar aspects to gold, but they are not bullion. There are aspects similar to the titles, but it is not exactly a title. The question of "what is it?" is actually a lot more complicated than it seems. It exists only as an entry in a large distributed digital book; "having" Bitcoins actually means having the power to transfer Bitcoins. No, in fact, it's not even technically correct. This means having a degree of authority measured in Bitcoins to transfer that same authority. Try to wrap your brain. In the future, I will refer to Bitcoins as a valuable thing transferred, but I understand that what I am doing is only a shortcut to make this essay readable. Having Bitcoins is the power to transfer powers.

So, in the decision to acquire my first Bitcoin, the first step was how to get the authority to transfer Bitcoins. One could theoretically print the cryptographic code of a Bitcoin and deliver the paper to someone else as a way to transfer the bitcoin represented by the code, but how could that recipient know that the Print was not duplicated and already used? In this regard, how can the recipient know that the printed print represents even a Bitcoin value rather than a simple string of random characters? Bitcoin paper-based paper transfers can work (though inefficiently) between people who trust each other, for example, for gifts between parents, but the genius of Bitcoin lies in the distributed but authoritative nature from his big book. to be exposed to his network.

If a Bitcoin print is transferred among a group of people without being exposed to the network, none of them will know if it was valid or counterfeit. It would be like circulating a bank draft to the order of the "bearer"; it may have already been paid for, or it may have never been good in the first place. Nobody would know this before trying to present it to the manufacturer's bank for payment. As long as someone is willing to accept a potentially hot potato for goods or services, this may not be of importance, but people tend to be wary of it. idea of ​​ending up with hot potatoes. I am one of these people and so I wanted my receipt of Bitcoins to be checked by the network. This turned my attention to a study of Bitcoin digital wallets. Portfolios are a digital place to store Bitcoin authority codes.


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