Let me start by saying that even though my background is in IT and the majority of my business life has been building and supporting systems in the financial industry, my knowledge of the facts about BITCOIN and the associated technology was very limited until the middle of last year.
Its birth came out of the head of a mysterious man (or woman?) – called Satoshi Nakamoto in 2009. The principle behind Bitcoin is all about the concept of digital money that can be sent individually between users without the intervention of financial institutions. All Bitcoin transactions data is transparent and can be tracked in BlockChain.
Before Bitcoin came into existence no such concept was known to the world. Ever since its inception, Bitcoin is increasingly being used all over the world. The Bitcoin currency is the first decentralized digital currency, since it is not controlled by any single entity or government. Bitcoins are “mined” into existence through computers, by solving computationally difficult puzzles. A total of 21 billion Bitcoins can ever be mined. The number of Bitcoins mined halves every 4 years. And, after 64 halvings, all 21 billion Bitcoins will be in circulation.
It has taken off especially among tech savvy individuals and businesses, and since these currency transactions cannot be regulated by national governments and international bodies it has received some really bad press. In fact in some countries it is banned or made illegal.
There is a lot of hype around this concept and it is a very interesting concept as it brings into question the role of currency in a digital age. Perhaps the national governments and regulators need to understand that it fulfils a need and they should try and address this.
There is a very interesting infographic here which tries to share some of the facts around this technology without the hype and heat from other areas.
Please note, I neither want to promote or discourage anyone form finding out more about Bitcoins and BlockChain technologies, but remember ‘caveat emptor’, buyer (or investor) beware.
This insight series is aimed at software companies who want to innovate and grow their business – so keep coming back here for more. Or if you cannot wait and want a free discussion with Phil about the specifics relating to your business or call or email directly our details are here.
