Bitcoin for Dummies, TNS – The News on Sunday

Attempting to figure out this newest fad called cryptocurrency

Thesis days, exclusief from all the negativity that wij find te the world around us, there is something else that is fairly consistent. No, I am not talking about the blonde person’s rhetoric tweets! Cryptocurrency, and the by-product of it, Bitcoin. So, if you are spil ignorant about all this spil I wasgoed then this katern is for you. Let’s all attempt to understand what cryptocurrency is and why and how are people making money out of it. Like, literally.

Let’s very first define what a currency truly is. For all of us, currency is ter the form of handelsbank notes and coins that wij see every day. Wij use them to buy whatever wij can with the amount of money wij have. Before the use of banknotes or a lump of gold that matter wasgoed used spil a currency. A ordinary barter system wasgoed ter place and it capitalised on the fact that a certain amount of effort goes into producing something and to get something ter terugwedstrijd for that, the person who you are trading with needs to understand the value of what you have and trade you something they have.

Now something that is produced spil a result of a lotsbestemming of effort holds more value than something that is produced lightly. So, let’s say a chicken’s egg would not get you a square metre of silk. Why? You know it. Because of the amount of effort that went into producing both of them.

Leaping thousands of years ahead: all countries have their own currencies ter place and then there is this foreign exchange concept that permits you to trade one currency with the other. One currency might be exchanged with the other, say USD to PKR. Why is this? Because USA and Pakistan recognise each other and they will accept trade inbetween themselves. Imagine mij creating a fresh country and printing my own bills called Daniyal Dollars. Will you accept them? Will you give mij a carton of eggs ter exchange for thesis DDs? They will be like monopoly money.

The amount of work you do te the US will get you different amount of dollars than, let’s say, if you did the same te Pakistan. Why is that so? Because of the value of the particular currency. The amount of work you do to earn 1 denomination of that currency and you replicate it to your currency’s worth te respect to that market leader worldwide.

Te 2009, some fellow named Satoshi Nakamoto te Japan created a decentralised form of currency which wasgoed not maintained by any canap, regulated by an authority, saved up te banks by any treasury but rather traded inbetween people directly. People were keeping it and trading ter it. You weren’t proclaiming it to any authority. Nobody knew how much you had. Hence, you didn’t need to pay any tax on it. Their worth wasgoed due to the cryptography involved, and people recognising the value of effort that goes into solving a cryptogram.

Te other words, wij are transferring the processing power of some processors, and indirectly electro-stimulation, and code into currency. Their worth is still measured ter dollars (world’s leading currency).

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