BIT­COIN BASICS

YOUR QUES­TIONS AN­SWERED

Idealog - - IDEALOG / KIWIBANK -

WHAT I S BIT­COIN?

Sim­ply put, Bit coin is the world’ s first de­cen­tralised cur­rency.

HUH?

Tech­ni­cally, Bit coin is acryp to cur­rency and a dig­i­tal pay­ment sys­tem. In prac­ti­cal terms, it’ s dig­i­tal coins you can trade over the in­ter­net with­out the need for a bank or other in­ter­me­di­ary.

WHAT’S THE POINT OF THAT?

Well, Bit coins are‘ bank less ’. In­stead of a bank record­ing all trans­ac­tions on one cen­tralised ledger, Bit coin op­er­ates via a de­cen­tralised ledger–it ex­ists on all users’ com­put­ers at the same time. That means that no sin­gle party can con­trol( or force a fee onto) a pay­ment.

THAT SOUNDS PROMIS­ING. WHAT’S THE DOWNSIDE?

What the in­ter­net is to pub­lish­ing, Bit coin is to money. It has the power to rev­o­lu­tionise or per­haps de­stroy t he world econ­omy.

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