Editing Bitcoin
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[[File:Bitcoin.png|150px]] | |||
==Summary== | |||
* Bitcoin is a currency. | |||
==What is Bitcoin?== | |||
Bitcoin is a currency. | Bitcoin is a currency. | ||
==What's unique about Bitcoin?== | |||
What makes Bitcoin unique is that transactions of the currency occur peer-to-peer (i.e. without the need of a central entity, such as the Bank of England), and the supply of the currency is limited (at 21 million coins). | |||
The main benefit of transacting on a peer-to-peer, decentralised network (rather than a centralised network) is that there is no real single point of failure. In a centralised network, if the central entity fails, then the whole network - and currency - fails (i.e. there is a single point of failure in the network), whereas in a decentralised network, becasue there is no central entity, there is no real single point of failure, and therefore the network - and currency - is likely to last for much longer, possibly forever. | |||
For example, the world's first ever known currency is the Mesopotamian shekel, and it was operated by a central entity (The Kingdom of Lydia). When the central entity failed, so did the currency. | |||
Another key benefit of | Another key benefit of a decentralised network is that transaction costs are lower. | ||
==Competition== | ==Competition== | ||
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|+ Currency competition | |+ Currency competition | ||
|- | |- | ||
! Item !! Bitcoin !! US Dollar | ! Item !! Bitcoin !! Ether !! US Dollar | ||
|- | |- | ||
| Does the currency operate on a decentralised network? || style="background: green; color: white;" | Yes|| style="background: red; color: white;" | No | | Does the currency operate on a decentralised network? || style="background: green; color: white;" | Yes|| style="background: green; color: white;" | Yes|| style="background: red; color: white;" | No | ||
|- | |- | ||
| Is the supply of the currency limited? || style="background: green; color: white;" | Yes || style="background: red; color: white;" | No | | Is the supply of the currency limited? || style="background: green; color: white;" | Yes || style="background: red; color: white;" | No ||style="background: red; color: white;" | No | ||
|- | |- | ||
| | |High likely is the currency to act as a store of value? | ||
|style="background: green; color: white;" |High | |style="background: green; color: white;" |High | ||
|style="background: red; color: white;" |Low | |style="background: red; color: white;" |Low | ||
|style="background: red; color: white;" |Low | |||
|style="background: red; color: white;" | | |||
|} | |} | ||
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! Item !! Bitcoin !! Ether !! XRP | ! Item !! Bitcoin !! Ether !! XRP | ||
|- | |- | ||
| Does the currency operate on a decentralised network? || style="background: green; color: white;" | Yes|| style="background: green; color: white;" | Yes|| style="background: | | Does the currency operate on a decentralised network? || style="background: green; color: white;" | Yes|| style="background: green; color: white;" | Yes|| style="background: red; color: white;" | No | ||
|- | |- | ||
| Is the supply of the currency limited? || style="background: green; color: white;" | Yes || style="background: red; color: white;" | No ||style="background: red; color: white;" | No | | Is the supply of the currency limited? || style="background: green; color: white;" | Yes || style="background: red; color: white;" | No ||style="background: red; color: white;" | No | ||
|- | |- | ||
| | |High likely is the currency to act as a store of value? | ||
|style="background: green; color: white;" |High | |style="background: green; color: white;" |High | ||
|style="background: red; color: white;" |Low | |style="background: red; color: white;" |Low | ||
|style="background: red; color: white;" |Low | |style="background: red; color: white;" |Low | ||
|} | |} | ||
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To invest in Bitcoin, click [https://www.coinbase.com/ here]. | To invest in Bitcoin, click [https://www.coinbase.com/ here]. | ||