An Economics Education by Bitcoin

For those unfamiliar with Bitcoin, there are much better methods to start comprehending it than this post; I ‘d recommend Wikipedia for starters. This article is meant for those who already think they know what Bitcoin is, but have not yet traded in it. There are so many nuances included in the trading of Bitcoin as to make it significantly academic.

It exists solely as an entry in a distributed digital journal; “having” Bitcoins really implies having authority to transfer Bitcoins. It means having a degree of authority measured in Bitcoins to transfer that really exact same authority. Having Bitcoins is the authority to transfer authority.

Hence, upon deciding to obtain my first Bitcoin, the first step was to identify how to attain authority to move Bitcoins. One could in theory print out the cryptographic code of a Bitcoin and hand the paper to another person as a means of moving the Bitcoin represented by the code, however how would that recipient know that the printout had not been duplicated and already invested? For that matter, how would the recipient know that the hard copy even represented some value in Bitcoin instead of simply a string of random characters? Moving printouts of Bitcoin on paper may work (albeit inefficiently) between individuals who implicitly rely on each other, such as for presents in between family members, but the genius of Bitcoin is the distributed however reliable nature of its journal, and for that to work, deals need to be exposed to its network.
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If a Bitcoin hard copy is transferred around amongst a group of individuals without being exposed to the network, none of them would understand whether it was valid or fake. I am one such individual, so I desired my receipt of Bitcoins to be verified by the network. Wallets are a digital location to store Bitcoin authority codes.

It implies having a degree of authority determined in Bitcoins to transfer that extremely exact same authority. Having Bitcoins is the authority to move authority.

Hence, upon choosing to obtain my first Bitcoin, the first action was to figure out how to obtain authority to move Bitcoins. One could theoretically print out the cryptographic code of a Bitcoin and hand the paper to someone else as a means of moving the Bitcoin represented by the code, however how would that recipient understand that the printout had not been duplicated and already spent? Transferring hard copies of Bitcoin on paper might work (albeit inefficiently) in between people who implicitly rely on each other, such as for gifts between family members, however the genius of Bitcoin is the distributed but reliable nature of its journal, and for that to work, deals have actually to be exposed to its network.

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