In part, due to the input of prominent crypto exchanges, Bitcoin, Ethereum, Litecoin, and the like became a buzzword in no time at all. No matter where you look, sooner or later you will come across some news surrounding one or the other crypto coin as it seems to pop in media debates most of the time. Apparently, you can use digital coins like these to purchase virtually anything, from a cuppa coffee to an automobile. However, very few people have an understanding of how it works.
If they take the time to gain a thorough understanding, they would realize the value of how not just Bitcoin but other digital currencies will change the way how we send each other money.
At its core, Bitcoin can be seen as a fundamental range of programming instructions that let PCs communicate with each other. In turn, it provides the computers with the necessary operating instructions and info that is needed to keep account of as well as verify various transactions among those who operate within the Bitcoin economy.
The system makes use of encryption in that users need to make use of a unique password to enable them to transfer money digitally to each other without having to reveal the passwords to anyone.
In turn, it sets out the steps the PCs in the network need to carry out to reach a consensus on the authenticity of every transaction. Once this is out of the way, the recipient will know there are enough funds and no chance of counterfeit digital money being sent.
What gets futurists, economists, and techies excited about cryptocurrencies? It is the mere fact that it serves as an open-source foundation from which anyone can develop the needed tools for managing exchanges and doing commerce.
One can think of it as an operating system. However, the critical difference is that it would not provide instructions to a single PC on how it should run itself, but instead to a group of computers on how they need to interact with one another. Its central features can be appreciated in that it records every transaction that ever took place, which can be seen by everybody in real time.
Various applications are being developed to ensure that a cryptocurrencies exchange like some listed on Fooyoh is more fluid and user-friendly when users make use of their digital wallets to allow the smartphones to zap money to each other digitally.
All this is made possible thanks to a transparent and verifiable record of ownership where no centralized registry is needed. In this way, people can exchange various types of digitized items of value with confidence. There is no need for any intermediary such as lawyers, banks, or government agencies to get involved. This the power of Bitcoin technology that many raves about.
Think about it for a moment. Currencies are among the most powerful tools governments make use of to control their subjects with. You just have to ask residents in Cyprus, Greece, Portugal, or Ireland.
Bitcoin is in place to take at least some power away from the authorities to hand it to the common man in the street. Then again, there is also the worry that Ethereum and other currencies like it can flame out entirely. What comes to mind is the Betamax video format that made way for VHS, to be replaced by DVDs, and modern-day MP4 formats.
When you talk to some of the older generations about digital currencies, the first reaction you would get is one of disdain. The thing is that it’s supposed to be money, but weirdly it does not have the same attraction as real money has that all are familiar with.
Crypto coins are not issued by governments or forged from metal. Another reaction you are sure to come across is skepticism. No doubt, some of the first thoughts about to cross your mind would be thinking of Bitcoin as a tulip mania or Ponzi scheme.
Curiosity about digital currencies keeps people reading with the hope that everything about it will become crystal clear and even makes sense in some weird way. They want to understand what difference it will make to their lives and why others are so in awe of it.
Finally, you get to accept the concept of cryptocurrency once you realize there is a better and faster way of doing business. This is when the lights come on.