That is correct people, the dollar went digital, and we call it a bitcoin. There is a new digital currency out there and its quickly become all the talk. Essentially a bitcoin is the MP3 version of a dollar bill.
However, there is much mystery behind its creation, actual value and many inside the US government are very much against it. I learned about it from my friend Clyde over a Flux Research. I was immediately intrigued and shortly after learning about it I found a fantastic story by Dan Holden on the front page of the San Jose Metro News here is how part of it reads:
The idea was first described in 2008 by a software developer who made his initial success as a video-game developer in Japan. The developer’s name is a mystery. He or she (or possibly they) published the concept under the pseudonym Satoshi Nakamoto and has not publicly revealed his/her identity. Nakamoto claims to have left the Bitcoin universe entirely to pursue other interests soon after publishing the paper; others say that Nakamoto remains a key player.
If this sounds more like the origin story of a comic-book superhero—wait, there’s more.
Bitcoin operates at to fundamental levels: the Bitcoins themselves, which must be “mined”; and the software system used to exchange them.
Satoshi Nakamoto is essentially the Kaiser Soze of the internet. He is the truly unseen hand that stirs the drink. Then, just when you thought you almost understood where this is going, its gets much, much deeper:
There are a finite number of blocks in the Bitcoin universe, and by extension, there are a finite number of Bitcoins that will ever be mined—roughly 21 million. The “Genesis block” was mined on Jan. 3, 2009. Bitcoin enthusiasts know this date like they know Jesus was born on Dec. 25.
The first 210,000 blocks of Bitcoins—exactly half of all Bitcoins that will ever be released—were extracted by December 2012. Because the complexity of the mining challenge increases as mining continues, it won’t be until around 2040 that 90 percent of all Bitcoin blocks are mined, and it will take about 60 additional years to mine the last 10 percent.
If you’re wondering how a Bitcoin economy can be grown from 21 million coins, consider that the Bitcoin can be digitally fractionalized (0.5 Bitcoin, 0.1 Bitcoin, etc.). The smallest unit of a Bitcoin is called a Satoshi, which is expressed as a one with eight zeroes ahead of it (0.000000001 Bitcoin).
So, I've been totally obsessed with the bitcoin revolution (not as a full blown supporter, I'm still learning but I think fully digital money has to be an inevitable reality ). I love to watch anything that is considered a disruption to anything become a new standard (the MP3 revolution as an example.
Then, just when I thought I was getting this idea under my belt, Forbes drops a doozey on the US government smashing on the bitcoin movement in California
A lot of powerful money people are behind the bitcoin movement. Will the US government fold to the new genie out of the new money bottle? We shall see...