The Bitcoin is a social money network and is as scarce as gold

bitcoin
The value of Bitcoin has gone up from zero to 120 billion USD in 9 years since its inception in 2008. Nobody knows who created the ‘Bitcoin’. The creator has handed over and disappeared since then and goes with the pseudonym “Satoshi Nakamoto”. As part of its creation, the world’s first ‘Block Chain’ database was devised. Image credit: Pixabay

Podcast special feature

“Bitcoin is a social movement” says The New York Times technology reporter, Nathaniel Popper, and author of a book on Bitcoin called ‘Digital gold’.

In the below embedded podcast radio talk, heard on ‘Fresh air’- NPR, Terry Cross talks to Nathaniel on how Bitcoin has emerged from an underground currency to a system where major financial institutions and banks are looking at using its decentralized network. Thanks to NPR org.

Please find the essence of the talk below. For those of us who do not understand what Bitcoin is, the below essence of the podcast can be helpful.

Bitcoin can be understood on a number of layers, says Nathaniel.  From its initial journey, where in participants were able to buy drugs, do black-marketing, shrouded in privacy and secrecy to its current recognition as the world’s decentralized cryptographic digital payment, Bitcoin has come a long way.

It is pointing to a direction where money is going; or needs to be.

Its origins can be traced back to the late 2008. Scientists, worried about the then internet privacy and the distrustful central financial institutions, created an anonymous digital currency for the public good.

Bitcoin is a digital token. It consists of a vast network of decentralized computers and it lives inside it.  People can use this digital token to buy, sell, and transact on the internet with a network of widely accepted places, just like any other currency.

It is a legally accepted digital currency in almost all the countries, except for a few. It is an independent entity and anyone can freely transact and support Bitcoin.

There is no central administrator and as such, the network  gives incentives to people to join it. People can volunteer to keep financial records and earn some Bitcoins. The transactions are transparent. A new block of Bitcoins are released every 10 minutes into the network and there are somewhere around 13,000 interconnected nodes to support it.

“A year ago, a Bitcoin was worth less than  $1000″ says Nathaniel and now it could be much more.  He says “it is not a bubble” and there is much speculation that its value will be much more in the future.

Just like gold, Bitcoin is created as a scarce asset, only about 21 million of Bitcoin can be released, and it is going to be only until 2140.

Cheers.