To bring you the best content on our sites and applications, Meredith partners with third party advertisers to serve digital ads, including personalized digital ads. Those advertisers use tracking technologies to collect information about your activity on our sites and applications and across the Internet and your other apps and devices. Receive all Bitcoinist news in Telegram! Here are five ways in which Bitcoin technology has completely redefined the concept of money in its nine years bitcoin technology images existence.
Bitcoin is one of the most groundbreaking monetary experiments in human history. Meanwhile, Bitcoin technology has already reinvented the concept of money. Federal Reserve, the characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability. Interestingly, Bitcoin does not only posses, but has greatly enhanced and redefined many of these properties. Let’s take a look at five ways how the world’s first cryptocurrency has already transformed money as we know it. Unlike a ton of gold or suitcases filled with cash, a Bitcoin user can store indefinite amounts on a given address.
A hardware wallet is probably your best bet, but one can also simply memorize a passphrase to access their wallet at any time. This also makes the concept of durability irrelevant, since your funds are completely digital and always accessible as long as you know the keys. Comparatively, the cost of safely storing cash, and particularly gold, comes at a great price and is the reason banks were created in the first place. Remember that trillion dollars you hold in bitcoin? Well, you can send half of it, for example, to someone else on the other side of the globe in minutes, just like an email. This is something that was never done before so seamlessly and without a middleman.
10,000 USD can be brought along. A penny more, and you must explain where that money is coming from and what it is being used for to the border patrol. Good luck confiscating funds from a person’s memory. A gold bar, a penny etc.
Don’t think you’ll be sending fractions of a penny anytime soon? Such small units of account open up a whole new range of business opportunities. Think tipping, streaming money, and new ways to monetize online media, where clicks will be literally worth money in the not too distant future. Bitcoin introduced something that has never existed before: the concept of digital scarcity. Hard capped at 21 million, there are no central planners or decision-makers that can change this number because that would mean convincing millions of users to go along. Moreover, the Bitcoin network is designed to deter a potential attack. In other words, it is more profitable for all parties to play by the rules of the Bitcoin network instead of attempting counterfeiting, double-spending, or disrupting the network in general.
You can affect with the most immense amounts of computation, hundreds of hexahashes per second, computation that doesn’t currently exist on the planet. Let’s say you did have that. You could now affect hundreds of blocks. You can rewrite the history of this afternoon but not yesterday and certainly not last week. And most certainly not last year. This is probably the most important concept introduced by Bitcoin. Internet is for transferring and storing data.
2009 Chancellor on brink of second bailout for banks. Your Bitcoin company goes out of business? Tough luck, because there is no Bitcoin CEO or Fed Chairman that will bail you out because you were frat brothers in college. Governments may think twice about warfare in general if money cannot be easily created out of thin air. Bitcoin is not a static technology. In fact, the innovation in Bitcoin has been staggering. Numerous proposals to optimize and improve it are already in the pipeline, including plans to make transactions instant, cheaper, more private, and more decentralized.