When we talk about the value of Bitcoin then we really need to look at and understand the Blockchain first. I was asked the other day to try and explain this in layman’s terms so here goes.
I am by no means an expert but have definitely spent a lot of years researching and educating myself in the creation and use of currency. The real value of Cryptocurrency lies in its technology, whether we realise yet or not we will be inevitability using it in the near future. Bitcoin, for example, cannot exist without the Blockchain so this is one of the intrinsic values (using the word lightly, ahem) of Bitcoin.
So what is it?
is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. It cannot be hacked, changed or manipulated once recorded. When a transaction is made and recorded on the ledger then that becomes one true source of information validating the peer to peer transaction.
Blockchain was invented by Satoshi Nakamoto in 2008 for use in the cryptocurrency Bitcoin, as its public transaction ledger. The invention of the Blockchain for Bitcoin made it the first digital currency to solve the double spending problem without the need of a trusted authority or central server. The Bitcoin design has been the inspiration for all manner of other applications.
What does this mean?
Well, in a nutshell, it will bring about accountability to everything we know.
This is a problem the human race has been trying to solve for aeons. It brings trust, consensus and a record that cannot be manipulated by anyone human being.
Imagine if Government department spending was using smart contracts on the Blockchain to record where all the money gets spent! Imagine how that would revolutionise the Government and stop any corruption or human error! If every politician was held accountable and could not lie their way out of their mistakes, that would be an enormous gain to the public. Imagine the NHS spending being recorded on the Blockchain?
Imagine a department being issued tokens instead of money and those tokens can only be spent on a specific resource!? No more wasting of money, no more employing unnecessary agency staff as their will always be someone to hold accountable.
This is something we have never had in human history.
I suppose when Satoshi Nakamoto wrote the original Bitcoin white paper they must have thought the best place to start having some accountability would be our money first, besides that’s the most manipulated thing in the world. Once the banking industry and the creation of our currency are under Blockchain supervision if you will, then all other industries would eventually follow suit.
Being involved in this massive industry and supporting Cryptocurrencies at this early stage is a noble act at least and paramount at best! I commend you all and look forward to this exciting future the Blockchain technology can bring forward for the better for the Human Race and our Mother Earth.
By Jem K. Ali