Is Bitcoin Real Money? Some Things You Need To Know
It’s been in and out of the news, and in again. At first glance it seems like nothing worth paying attention to, a joke praised by out-of-touch internet nerds and ivory tower intellectuals.
Is it believable that bitcoin has been going strong for 7 years? During this time no less than 118 articles have been written about the ‘death of bitcoin’, there is even a site dedicated to recording these .
Fungibility. Is each bitcoin is the same as each other bitcoin? Bitcoin has fungibility problems because technically transactions are traceable. When you make a bitcoin transaction, the coins you spend from your wallet to another wallet have a traceable history back to the point where those coins were mined from the network. If certain services are deemed unfavorable, the history of coins moving through wallets which are associated with unfavorable services could be marked. Therefore in the future some coins could be seen as more valuable because they are clear, meaning they have not been dirtied by touching wallets of unfavorable services. At the current state of the network, bitcoin has fungibility issues, this is a problem which needs to be solved in order to make any bitcoin as valuable as any other bitcoin.
Divisibility. Each bitcoin (or BTC) is divisible down to 8 decimal places. A Millibit is 0.001 BTC, a Bit is 0.000001 BTC and a Satoshi is 0.00000001 BTC. This ensures that even on a global scale people could transact in fractions of bitcoin, if the value is to increase it is likely that casual daily spending will be in bits and milli bits. An example of this would be heading to your local cafe and purchase a coffee for 100 milli bits.
Portability. A bitcoin can be stored on your phone, tablet, computer, or even a bitcoin-specific
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