What is the value of Bitcoins?
From a layman's point of view, Bitcoin is worth literally nothing. Yes, despite being touted as the digital Gold, Bitcoin is literally worth nothing in the real world. Bitcoin is a virtual product just like an ebook or music file.
Aside from being exchanged from one owner's account to another in a transaction, Bitcoins do not do anything nor can they be used for anything.
If you might be wondering, wait! If Bitcoins are worth nothing, then why are they such a big deal? Why is Bitcoin being hailed as digital Gold when it is worthless when compared with Gold?
The answer lies not in Bitcoins itself, but the technology behind Bitcoins - Blockchain technology.
Blockchain technology is a computer system which allows us to achieve decentralized consensus among anonymity parties in a transparent and autonomous manner.
What was that? Blockchain technology allows us to build computer systems which are transparent, open and accountable.
Blockchain technology works through an open record keeping system where all stakeholders in the system keep a full copy of the entire records. These stakeholders are usually mining nodes.
The approvals of all stakeholders is required before any new entry is appended into the records keeping system, and all stakeholders who actively work to verify the integrity of the new transactions would be rewarded with new coins by the network.
Blockchain network is used by banks all over the world in what is called Blockchain consortium, with the largest consortium being R3.
As we have seen, the main value of Bitcoins is not in its features, but the revolution it has sparked with its Blockchain technology.
Blockchain technology is what makes Bitcoins decentralized, autonomous and transparent. Blockchain technology can be used in any industry. With Blockchain technology we can build digital systems which are decentralized, autonomous and transparent.
Blockchain technology can be used to build smart system in various industries including:
- Health
- Finance
- Manufacturing
- E-governance
Steemit is an application built on Blockchain technology - the Steem Blockchain. Ethereum, Ripple, Dash, EOS and Tauchain are all Blockchain network.
Recommended posts:
- A brief overview of the #EOS project
- Accounting for the total amount of Bitcoins.
- 4 reasons why why you should still use Bitcoins.
- Bitcoin Effect: How Bitcoin will transform finance, economy and establishments.
- How to use your Steem/SBD for remittance or shopping online.
- Founder of @BlockRush joins Steemit: Bitcoin enthusiast and author joins Steemit!
- Satoshi Nakamoto mystery: 8 years on and no one knows Satoshi - what do you think?
- Check our second post: A minute's guide to Bitcoin and Steemit.
- Crypto-currency investor read: the no-brainier guide to investing.
- Join the discussion - is Bitcoin still digital Gold?
@BlockRush is an informational site about Bitcoins/Blockchain technologies and industries. We features news analysis of major development in the Bitcoin and Blockchain and outline their potential impact on the economy and society. Follow@BlockRush and we will follow you back!
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