almost a decade ago Bitcoin is among us, and yet for most the issue of criptomonedas like something out of "back to the future". Although Bitcoin is redefining the economic, political and cultural dynamics of mankind, in our country we know how Bitcoin and technology on which it supports - the blockchain - can help us rebuild our economy destroyed by socialism, to remove tyrannies you corrupt and offer an infinite range of possibilities for citizens to overcome poverty through free enterprise and entrepreneurship.
It is necessary that every day more people understand what this powerful technology that has already broken all existing paradigms; so come with me to explore the 10 things you should know about Bitcoin.
1 How's that for a cryptocurrency?
We all know what a coin: a piece of metal that represents a certain value and used to be exchanged for goods and services. Now, how's that for a cryptocurrency? Well it's the same, except that instead of being a piece of metal is an encrypted code and encrypted information. It seems very futuristic, but years ago was also thinking of complex digital photographs that were beginning to assert itself against the physical photographs; and today we are accustomed to using every day, exchanging with our instant messaging services and publishing in our social networks.
Good as a photograph is a sequence of information transferred, so is a coin; the big difference is while a photo is no problem to send copies left and right, a coin can only be transferred once and in an irreversible exchange. Otherwise it would create economic chaos coin that magically reproduce.
How is this issue resolved? A person named Satoshi Nakamoto (whom no one really knows and nor is it known if a group of people under a pseudonym) published a paper in 2008 which proposed a method involving the use of various tools that allow the code representing each currency which was transferred between two users, it was verified simultaneously by a network of computers around the world and then included in a register called Blockchain unchangeable (block chain). With this it is impossible to spend the same money twice. Problem solved!
2 It is a safe currency?
The first thing you should ask is whether the currencies to which we are familiar are safe. Obviously all Venezuelans while we understood that "bolivar" was used by Chavistas as they felt like, to finance all its stupidities, the point of becoming the laughingstock of the world's currencies, so devalued in Colombia buy tickets two bolivars to papelillo for parties because it is cheaper than ordinary paper. But is it safe dollar, euro and other currencies of other nations? That is a question that would require you to do a lot more research, but I'll summarize as follows: they are not safe because most are not backed by gold or other standard of value, but represent debt; government debt contracted with institutions like the Federal Reserve and allows infinite can print new notes depending on the whims of governments, central banks, and other institutions. That's not something that I would not call a safe currency.
But incredibly, this does not happen with Bitcoin, so then we could say it's a safe currency. You see, unlike the bolivar or the dollar, which depend on a central administration that guarantees its value, the Bitcoin is to guarantee the validated through a decentralized network composed of thousands of people around the world who lend their computers to verify each of the operations performed between users of Bitcoin. These people who validate the network is known as "miners" and basically anyone in the world with a dedicated computer and internet, you can join and participate in the network.
All this allows the information can not be manipulated in the interest of one or more players in the system. They will have to manipulate the computing power of more than half of the entire network for an indefinite period or even a company like Google has a computational capacity to achieve it. So again I can tell you that the Bitcoin is a far safer than any other currency and it is a currency that inflation does not know what's better than that?
You want something safer? Then buy gold, yes, please note that you'll need to invest in security to avoid being stolen in certifiers for its authenticity, and it is not easy to divide or transport.
3 How do I can earn Bitcoins?
There are basically two ways to earn bitcoins: being mining or providing services that can be paid with them.
As I mentioned, the Bitcoin network is supported by thousands of people who connect their computers to allow the system to work. They do not free. Each person adds computing power is rewarded with the granting of a defined amount of coins as a reward. Similarly, each time an operation is performed with bitcoins the system deducts a small amount in the form of commissions. So with these rewards and commissions it is that it becomes profitable to be mine, because we have to bear in mind that be on the network is a cost of electricity and investment in equipment, among others.
The other way is to simply win them over by offering some kind of product or service and receiving in exchange Bitcoins for them. This is ideal for people who are now added to telework across platforms as Workana, Freelancer, among others; or for people who are buying and selling through e-commerce.
4 What is a virtual wallet?
Just as you need a wallet or purse to keep your money, to manage your bitcoins need a software or service where "store it". I put it in quotes so that you understand that actually bitcoins are stored in the Blockchain. What they do is assign virtual wallets two keys, one public and one private. The public is like a bank account number to which other users can pay you through the network, is the name with which they can identify you without knowing your real name (pseudonym).
The second key is the private key, which serves to approve a transfer. It's like the key that opens the trunk in which "guards" your bitcoins. Only you know it, only exists and as with the keys in the real world, if you lose, because the river mourn, because there is no such thing in the Bitcoin network as a virtual locksmith. It's not like the key to the debit card, if you lose you go and you ask another to the bank; because remember that here there is no one to go to ask anything. Bitcoin no central administrators.
5 How are infinite bitcoins?
No, and that's the best thing. Bitcoins have a definite number to be issued and 21 million. Where did that number? It is a consensus among developers and users of the network because they accept and keep well. They are those 21 million enough? You are right. Given that they can be broken down into small units to one hundred millionth -the smallest part is called Satoshi- and 1 BTC now exceeds two thousand dollars, 21 million BTC equivalent to 42 billion dollars.
Importantly, these 21 million BTC are not yet all in circulation. To date they have undermined somewhat less than half 16 million and is estimated to reach 21 million by the year 2141, so you should not worry while they last. And why if since 2008 have been mined 16 million will undermine the latter in 2141? Simple: because every so often the difficulty of undermining recomputed and the reward is reduced by half.
What will happen when they have mined all? The same will happen when no longer any gold out of the ground: nothing.
The important thing is to understand that having a limited amount of BTC and its issuance be decentralized and default behavior is not fiat currency may-not devaluar-, so it is a currency that prevents inflation.
Evolution of bitcoin mining from 2013 onwards.
They are imagine that in 2008 we had all changed our Bolivars for Bitcoins!
6 What you can buy with Bitcoin?
Basically you can buy anything as long as someone is willing to receive bitcoins in exchange. In Venezuela maybe it will be some time before we can use them to market or pay for services, but in Asian countries and many others in the West and the Bitcoin is everyday, to the point that you can pay up to a hotdog in a corner.
7 Are there other criptomonedas?
And there will be other criptomonedas and it's good that way. Coexist in the world hundreds of different currencies and that is not a problem.
So the emergence of new criptomonedas is not something to worry about. In fact some currencies like the ether, the ripple or iota come to introduce new revolutionary developments in the world economy.
If you are surprised the Bitcoin esperate to infartarte with proposed IOTA!
8 Why use bitcoin in Venezuela?
Basically because it is a currency that can not be controlled either by the banks or by governments. Through its use we can send the exchange control where it should have been from the beginning: to poceta.
With Bitcoin no need to ask permission to CADIVI, or Simadi, or dicom, or any bank that is very powerful. Simply we recover the autonomy of our heritage and we will break with one of the main tools of domination of the Chavez regime.
In addition, using bitcoin we will protect our savings from the destructive effect of inflation; He has done all Venezuelans lose their purchasing power, becoming a dependent village of state power.
Finally, to regain control of the economy by the citizens, we will be depriving the government of one of its main sources of power.
So if you're determined to fight from civil disobedience, let me tell you that the use and promotion of Bitcoin causes more damage to the government that all marches and guarimbas together.
9 What is the future of Bitcoin?
No need to be Nostradamus to know that the future economy will be governed by the criptomonedas. In addition there is no need to be a genius to understand that the collapse of the dollar, rather than imminent, is necessary if we disempower the political and financial elites who dominate us and restore freedom to the citizens.
The criptomonedas allow a truly global economy in which all the inhabitants of the planet can participate without any government regulation or monopoly.
10 Can Bitcoin change the future of mankind?
It is important to understand that bitcoin as a currency will enable significant progress to the economy and freedom of citizens; but it really is unimaginable how technology is where the Bitcoin-the blockchains- is supported change the way we live.
In my next article I will discuss about the incredible r-evolution (I'm sick of the context of that word without the hyphen) to provide the technology blockchains; But I'll list some of them so they go making an idea:
Elimination of financial monopolies: the monopoly power of banks to create money will be completely eliminated, moving to an era where capital will be managed in a decentralized way, competing, and much more intelligent.
Social networks are no longer masters of our information. Networks currently store all kinds of information about us, for better or worse. Well, I want my information is only mine and this will be achieved with blockchain.
Integrated health system and confidential: As with the networks, our medical information is managed by centralized who are not exempt from errors or corruption institutions. The blockchain technology will allow us to be the only stewards of our information.
Internet of things: all network devices and smart devices capable of exchanging information with each other and currency. Imagine a beverage vending machine could be administered without a person take control. There are endless opportunities.
Intellectual property management: Imagine being able to sell a photo, a video or a song to another person without any intermediary. This will provide economic opportunities to millions of people.
Voting systems without the possibility of fraud. Well, imagine the impact it would have on every citizen could vote on the necessarily collective decisions without possibility of fraud.
Government without corruption: imagine that all public expenditure could be auditable and be evaluated by a network, enrolled in a blockchain. Definitely the bane of politicians.
Prostitution without mafias without risk of infection: leaving aside the moral question, imagine that there are no mafias of pimps, but citizens can participate freely in a network of exchange of sexual services in which a condition is to present a certificate digital date had not contracted HIV. It would not cure AIDS, but it would reduce its spread.
completely free economy: imagine being able to buy and sell directly to anyone in the world and pay instantly. Goodbye Westerm Union, Paypal and all credit card monopolies.
Well, I was short on all the implications that will have the blockchain in building a better future for humanity.
Finally, I can conclude that the blockchain bring us every day to a true capitalist free market revolution and that neither could have imagined Ayn Rand.
It is necessary that every day more people understand what this powerful technology that has already broken all existing paradigms; so come with me to explore the 10 things you should know about Bitcoin.
1 How's that for a cryptocurrency?
We all know what a coin: a piece of metal that represents a certain value and used to be exchanged for goods and services. Now, how's that for a cryptocurrency? Well it's the same, except that instead of being a piece of metal is an encrypted code and encrypted information. It seems very futuristic, but years ago was also thinking of complex digital photographs that were beginning to assert itself against the physical photographs; and today we are accustomed to using every day, exchanging with our instant messaging services and publishing in our social networks.
Good as a photograph is a sequence of information transferred, so is a coin; the big difference is while a photo is no problem to send copies left and right, a coin can only be transferred once and in an irreversible exchange. Otherwise it would create economic chaos coin that magically reproduce.
How is this issue resolved? A person named Satoshi Nakamoto (whom no one really knows and nor is it known if a group of people under a pseudonym) published a paper in 2008 which proposed a method involving the use of various tools that allow the code representing each currency which was transferred between two users, it was verified simultaneously by a network of computers around the world and then included in a register called Blockchain unchangeable (block chain). With this it is impossible to spend the same money twice. Problem solved!
2 It is a safe currency?
The first thing you should ask is whether the currencies to which we are familiar are safe. Obviously all Venezuelans while we understood that "bolivar" was used by Chavistas as they felt like, to finance all its stupidities, the point of becoming the laughingstock of the world's currencies, so devalued in Colombia buy tickets two bolivars to papelillo for parties because it is cheaper than ordinary paper. But is it safe dollar, euro and other currencies of other nations? That is a question that would require you to do a lot more research, but I'll summarize as follows: they are not safe because most are not backed by gold or other standard of value, but represent debt; government debt contracted with institutions like the Federal Reserve and allows infinite can print new notes depending on the whims of governments, central banks, and other institutions. That's not something that I would not call a safe currency.
But incredibly, this does not happen with Bitcoin, so then we could say it's a safe currency. You see, unlike the bolivar or the dollar, which depend on a central administration that guarantees its value, the Bitcoin is to guarantee the validated through a decentralized network composed of thousands of people around the world who lend their computers to verify each of the operations performed between users of Bitcoin. These people who validate the network is known as "miners" and basically anyone in the world with a dedicated computer and internet, you can join and participate in the network.
All this allows the information can not be manipulated in the interest of one or more players in the system. They will have to manipulate the computing power of more than half of the entire network for an indefinite period or even a company like Google has a computational capacity to achieve it. So again I can tell you that the Bitcoin is a far safer than any other currency and it is a currency that inflation does not know what's better than that?
You want something safer? Then buy gold, yes, please note that you'll need to invest in security to avoid being stolen in certifiers for its authenticity, and it is not easy to divide or transport.
3 How do I can earn Bitcoins?
There are basically two ways to earn bitcoins: being mining or providing services that can be paid with them.
As I mentioned, the Bitcoin network is supported by thousands of people who connect their computers to allow the system to work. They do not free. Each person adds computing power is rewarded with the granting of a defined amount of coins as a reward. Similarly, each time an operation is performed with bitcoins the system deducts a small amount in the form of commissions. So with these rewards and commissions it is that it becomes profitable to be mine, because we have to bear in mind that be on the network is a cost of electricity and investment in equipment, among others.
The other way is to simply win them over by offering some kind of product or service and receiving in exchange Bitcoins for them. This is ideal for people who are now added to telework across platforms as Workana, Freelancer, among others; or for people who are buying and selling through e-commerce.
4 What is a virtual wallet?
Just as you need a wallet or purse to keep your money, to manage your bitcoins need a software or service where "store it". I put it in quotes so that you understand that actually bitcoins are stored in the Blockchain. What they do is assign virtual wallets two keys, one public and one private. The public is like a bank account number to which other users can pay you through the network, is the name with which they can identify you without knowing your real name (pseudonym).
The second key is the private key, which serves to approve a transfer. It's like the key that opens the trunk in which "guards" your bitcoins. Only you know it, only exists and as with the keys in the real world, if you lose, because the river mourn, because there is no such thing in the Bitcoin network as a virtual locksmith. It's not like the key to the debit card, if you lose you go and you ask another to the bank; because remember that here there is no one to go to ask anything. Bitcoin no central administrators.
5 How are infinite bitcoins?
No, and that's the best thing. Bitcoins have a definite number to be issued and 21 million. Where did that number? It is a consensus among developers and users of the network because they accept and keep well. They are those 21 million enough? You are right. Given that they can be broken down into small units to one hundred millionth -the smallest part is called Satoshi- and 1 BTC now exceeds two thousand dollars, 21 million BTC equivalent to 42 billion dollars.
Importantly, these 21 million BTC are not yet all in circulation. To date they have undermined somewhat less than half 16 million and is estimated to reach 21 million by the year 2141, so you should not worry while they last. And why if since 2008 have been mined 16 million will undermine the latter in 2141? Simple: because every so often the difficulty of undermining recomputed and the reward is reduced by half.
What will happen when they have mined all? The same will happen when no longer any gold out of the ground: nothing.
The important thing is to understand that having a limited amount of BTC and its issuance be decentralized and default behavior is not fiat currency may-not devaluar-, so it is a currency that prevents inflation.
Evolution of bitcoin mining from 2013 onwards.
They are imagine that in 2008 we had all changed our Bolivars for Bitcoins!
6 What you can buy with Bitcoin?
Basically you can buy anything as long as someone is willing to receive bitcoins in exchange. In Venezuela maybe it will be some time before we can use them to market or pay for services, but in Asian countries and many others in the West and the Bitcoin is everyday, to the point that you can pay up to a hotdog in a corner.
7 Are there other criptomonedas?
And there will be other criptomonedas and it's good that way. Coexist in the world hundreds of different currencies and that is not a problem.
So the emergence of new criptomonedas is not something to worry about. In fact some currencies like the ether, the ripple or iota come to introduce new revolutionary developments in the world economy.
If you are surprised the Bitcoin esperate to infartarte with proposed IOTA!
8 Why use bitcoin in Venezuela?
Basically because it is a currency that can not be controlled either by the banks or by governments. Through its use we can send the exchange control where it should have been from the beginning: to poceta.
With Bitcoin no need to ask permission to CADIVI, or Simadi, or dicom, or any bank that is very powerful. Simply we recover the autonomy of our heritage and we will break with one of the main tools of domination of the Chavez regime.
In addition, using bitcoin we will protect our savings from the destructive effect of inflation; He has done all Venezuelans lose their purchasing power, becoming a dependent village of state power.
Finally, to regain control of the economy by the citizens, we will be depriving the government of one of its main sources of power.
So if you're determined to fight from civil disobedience, let me tell you that the use and promotion of Bitcoin causes more damage to the government that all marches and guarimbas together.
9 What is the future of Bitcoin?
No need to be Nostradamus to know that the future economy will be governed by the criptomonedas. In addition there is no need to be a genius to understand that the collapse of the dollar, rather than imminent, is necessary if we disempower the political and financial elites who dominate us and restore freedom to the citizens.
The criptomonedas allow a truly global economy in which all the inhabitants of the planet can participate without any government regulation or monopoly.
10 Can Bitcoin change the future of mankind?
It is important to understand that bitcoin as a currency will enable significant progress to the economy and freedom of citizens; but it really is unimaginable how technology is where the Bitcoin-the blockchains- is supported change the way we live.
In my next article I will discuss about the incredible r-evolution (I'm sick of the context of that word without the hyphen) to provide the technology blockchains; But I'll list some of them so they go making an idea:
Elimination of financial monopolies: the monopoly power of banks to create money will be completely eliminated, moving to an era where capital will be managed in a decentralized way, competing, and much more intelligent.
Social networks are no longer masters of our information. Networks currently store all kinds of information about us, for better or worse. Well, I want my information is only mine and this will be achieved with blockchain.
Integrated health system and confidential: As with the networks, our medical information is managed by centralized who are not exempt from errors or corruption institutions. The blockchain technology will allow us to be the only stewards of our information.
Internet of things: all network devices and smart devices capable of exchanging information with each other and currency. Imagine a beverage vending machine could be administered without a person take control. There are endless opportunities.
Intellectual property management: Imagine being able to sell a photo, a video or a song to another person without any intermediary. This will provide economic opportunities to millions of people.
Voting systems without the possibility of fraud. Well, imagine the impact it would have on every citizen could vote on the necessarily collective decisions without possibility of fraud.
Government without corruption: imagine that all public expenditure could be auditable and be evaluated by a network, enrolled in a blockchain. Definitely the bane of politicians.
Prostitution without mafias without risk of infection: leaving aside the moral question, imagine that there are no mafias of pimps, but citizens can participate freely in a network of exchange of sexual services in which a condition is to present a certificate digital date had not contracted HIV. It would not cure AIDS, but it would reduce its spread.
completely free economy: imagine being able to buy and sell directly to anyone in the world and pay instantly. Goodbye Westerm Union, Paypal and all credit card monopolies.
Well, I was short on all the implications that will have the blockchain in building a better future for humanity.
Finally, I can conclude that the blockchain bring us every day to a true capitalist free market revolution and that neither could have imagined Ayn Rand.