(2011), when sending Paypal payments into India was quite a hassle, I set up a Bitcoin wallet – because 1 BTC > $0 (For donations on XDA for my custom ROMs I used to build) Bitcoin price back then ? $1 = 1 BTC Price 3 years later ? $1000 = 1 BTC
form of services. More you produce = richer you are Try to produce > consume Economics 101 MONEY Doesn’t really exist A man-made token to mediate ‘barter’ Helps exchange ‘products’ Money doesn’t make you rich. It is means to an end
(bank). This can be susceptible to political instability Eg. Greece It is “physical”. So problems of storage, security, transportation, preservation and prevention of forgery Importance of ownership more than transaction. Thus usually impossible to prove ‘cash theft’.
mining bitcoin per day ◇ Generating each block : Power for 6 American homes (day) ◇ If electricity cost > fiat equivalent of BTC, no one will mine ◇ 80% of mining happens in China using subsidized electricity. ◇ Fears of Chinese Govt. monopolizing the bitcoin mining
you have the private key ◇ Mostly people use online wallets ◇ In online wallets, you do not own the money. ◇ Unlike a bank, bitcoin wallets are not regulated. They can run away with your money, and you have zero legal recourse
continue to rise infinitely. ◇ Total blocks that the blockchain will have is limited *as of current implementation ◇ That means total money is limited. Total produce is unlimited ◇ Price of bitcoin will forever go up. This is deflation.
model ◇ A blockchain is not a ledger ◇ A blockchain is not meant *only* for transactions. ◇ What a blockchain is ? ￭ Chain of records. Cannot change events in the past. ￭ Distributed and decentralized. Can work with consensus, without a central authority.