Tuesday, December 9, 2014

Bitcoin

Lot has been in news about bitcoins. Tidbits about it.

Bitcoin has been created by Satoshi Nakomoto in 2009 and released as open source software. There are a finite set of coins, which can be mined(by solving complex algorithmic problems) or can be bought from people who have already mined. They are used for payments in e-commerce etc., similar to normal currency. Bitcoin is not a Fiat currency, since no recognised central government of any country backs it. It is hailed by it's followers as first unified currency for all the world.



But don't think you can mine a bitcoin. It's not simple today, since as the coins grew scarce, the complexity of problems goes up. Today people are renting huge offices and running multiple computers to mine them. So it's near impossible to mine. The easy way would be to buy.

The speculation about their rates, in the initial days was high, and there is a saying that a man bought an apartment in London selling the bitcoins he mined. But today, their price is not volatile and it has become a bit flat. So no use in even buying them. Just for the sake of having an antique piece, the first sign of liberty in currency, you can have it.