What is BitCoin?
You have probably heard of the term BitCoin. If not, this article will give some light into what it is. BitCoin is the newest form of currency. Instead of based on the physical coin and dollar bills, BitCoin is digital currency. Bitcoins are not printed like traditional money is. BitCoins are produced by people and increasingly software companies using sophisticated computer programs. This popular new form of money is called cryptocurrency. It is the world’s first completely open financial network.
BitCoin’s open platform lays the groundwork for new innovations when it comes to financial handling. Watch this video to get the full story behind BitCoins:
Comparing the Internet to BitCoin
The inventor of the Internet was a man known as Tim Berners-Lee. He is responsible for our ability to be able to share globally with others through building websites. His invention in the 1980’s laid the groundwork for everything that we now see evolving within the online world. When Lee invented the Internet he envisioned an open platform where anybody could participate and contribute.
BitCoin is being seen as the next biggest technological evolution as was the Internet in the 1980s. It is presently a decentralized open platform where anybody can participate and contribute. Everything we do today requires the use of the Internet. Some experts predict this new form of digital currency will become as popular as the Internet now is.
The Mystery Behind the Inventor of BitCoin
This is a huge mystery behind who the inventor of BitCoin truly is. The name Satoshi Nakamoto is what is being advertised as the “inventor” of BitCoin but there are huge mysteries behind this question. It is unclear if Satoshi Nakamoto is real or a pseudonym, meaning a fake name or if it is one person or a group of people. Or if even Satoshi Nakamoto ever had anything to do with BitCoin in the first place as shown in the image to the right in a statement given by Dorian Satoshi Nakamoto. From reading the statement, it sounds like Newsweek and especially a reporter named Leah Goodman and other similar leading top magazine reporters have harassed this individual and for that I wish to publicly say how horribly awful I feel that has happened. My deepest sincerity to Dorian Satoshi Nakamoto and his family to include his poor 93-year-old mother.
In 2008, Satoshi Nakamoto (or someone using his name) published a paper explaining the bitcoin digital currency. In 2009, that person released the first bitcoin software that launched the network and the first units of bitcoin crytocurrency was created. In mid-2010, a person claiming to be Satoshi Nakamoto ceased his or her involvement turning the reins over to Gavin Andresen, a Massachusetts resident who is the chief scientist at BitCoin Foundation.
In 2012, Satoshi Nakamoto claimed to be 37 year old living in Japan, but many speculate that cannot be the true due to his perfect English skills and more importantly, his BitCoin software has never been documented or labeled in Japanese. People who have studied the BitCoin source code say it is too well designed to be that of one person and that it would have taken a consortium of people to design the source code as flawlessly as it is designed. Some speculate that Nakamoto or at least an individual within the group claiming to be him is British, because the term bloody hard is noted in the source commentary code and in forum postings.
Exposing the true identity of BitCoin’s inventor could put him at great risk which is why I am sure many in the Bitcoin community have defended the founder’s high need for privacy. There are many companies and exchanges threatened by this readily available currency and could potentially target “Satoshi” and bring harm to him and his family as was harm that has been brought to Dorian Satoshi Nakamoto and his family.
For now, we will just put it down as an unsolved mystery and do nothing more which could ultimately bring harm to someone who has a brilliant mind and good heart for wanting to help the technological evolution of our society.
What is BitCoin Based On?
Understanding BitCoin technology is difficult for many people because we think of money in terms of something that can hold and have ownership over, but since we cannot physically hold something that is digital, it is hard to grasp the concept.
Governments around the world simply print more money whenever they need more. However, with BitCoins, they are not printed. They are mined – meaning, they are discovered. Computers mine for BitCoins around the world through competition.
People are sending BitCoins to each other over the BitCoin network all the time. These transactions are being recorded over a set period of time and placed onto a list called a block. The miner’s have the job to record these lists (blocks) into a general ledger which is called a blockchain. Every time a new list (block) is created it is added to the blockchain making it a continuously growing long chain of transactions.
The general ledger is trusted and held digitally. It is the miner’s job to take the list of transactions (blockchain) and put through a process involving a mathematical formula. Once the mathematical formula has been processed, it is turned into what is known as a hash. That hash is stored next to the blockchain for which is represents. As the blockchain grows in length, the data from each hash produced is contingent upon data from the prior block. If anyone were to tamper with the hash, everyone would know because the chain would be broken in a sense, because each hash created is dependent on the previous one.
What is Microsoft Blockchain Platform?
With any new innovation, you know Microsoft will be on the front lines. Microsoft is continually hoping on the technological bandwagon. Microsoft announced at the end of 2014 that they were accepting BitCoin as a form of US payment for digital products purchased through their website.
In November 2015, Microsoft announced its release of a new cloud-based blockchain platform which would allow financial institutions to experiment with the blockchain technology. Microsoft joined forces with a tech start-up out of New York called Consensus Systems (ConsenSys) which focuses on developing decentralized applications. Together Microsoft and ConsenSys developed what is known as the Microsoft Blockchain Platform.
The main advantage with the recent collaborative project between Microsoft and ConsenSys is that financial institutions will not have to attempt to build blockchain models from the ground up which as was reported by Marley Gray, Microsoft Director of Tech Strategy for Financial Services, was the biggest complaint of their financial customers, many of which claiming building a blockchain model was too expensive and too hard or perhaps we should say bloody hard as was the words used by someone claiming to be the inventor of the BitCoin as mentioned earlier in this article.
On January 4, 2016, Marley Gray posted a blog post stating that Microsoft has added four new partners to the Blockchain as a Service (BaaS) project:
- BitPay – The world’s leader in BitCoin payments.
- ManiFold Technology – Developed a private powerful blockchain capable of high transaction speeds.
- LibraTax – Handles the reporting, accounting auditing and taxation piece of the blockchain.
- Emercoin – A leading digital currency and blockchain platform which focuses on enterprise solutions.
BitCoin: The Good & the Bad Side
Like with any new invention and technological innovation, there has been controversy over the use of BitCoin as we have seen many people take advantage of this new technology and use it to do harm. It has been used in drug dealing operations and gambling sites. Terrorists have also been reported to using BitCoins. Therefore, many people are saying that is makes it easier to scam people and conduct criminal activity.
On the other hand, BitCoin technology has been used for good and philanthropic efforts such as helping third world countries and sending money internationally to help starving children in impoverished countries. Just like with any new invention, the criminals will use whatever angle they can find and good people will look for ways to pay it forward and help others.
As Star Wars movie fans will say, there is the Good Side and the Dark Side to everything.
Beware of Internet Scams
Once again comparing BitCoin technology with the Internet, there are definitely many scams out there to be cautious of. Many of them are making claims that you can get rich quick by working at home. I have written about a few of them such as Excel Cash Flow and Herbalife, a company that has undergone scrutiny for possibly operating a pyramid scheme. Although it is true you can make money online, it will not happen overnight and there is no way to get rich quick. You will have to persevere and work hard but you can achieve financial freedom in 2016 if you are willing to put forth the hard work.
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