What is Bitcoin ? Explain

 What is Bitcoin? Explain 



                                                    Welcome to Tehnobuzz


I am Akshat and I will be your guide
 by this Scripture  Bitcoin Whiteboard on Tuesday. We will talk about many such topics Bitcoin Mining, Bitcoin wallets, how to trade Bitcoin, and much more. Today we will start over and search for the third most searched word on Google, what is Bitcoin? If you are worried that we will be very professional and use a lot of difficult words, don't do it. Here at  Technobuzz, we translate Bitcoin into plain English so even if you have into the technical domain you will be able to understand everything. At the end of this lesson, you will know more about Bitcoin and how it works more than 99% of the population. So let's get started…Before we talk about bitcoin want to take a moment and talk about money. What exactly is money? In essence, money represents value. If I do something for you, you give me money instead of the price I gave you. I can then use that money to find something of value to someone else in the future. Throughout history, the number has taken many forms and people use a lot of different things to represent money. Salt, wheat, shells, and gold are all used as methods of exchange. However, to obtain something
representing the value people should trust that it really is important and it will always be important long enough for them to know use that number next time. Until a hundred years ago or more we have always relied on THAT  representing money. However, something happened on the way and change our model of trust in trust in somethingTHO trust in someone. Let me explain. In time, people found it very difficult traveling around the world gold bars or other forms of money, so paper money was introduced. Here's how it works: the bank or government can offer a take carry your gold bar; Suppose it costs $ 1000, and in return, that bank would do issue certificates of acquisition, what we call debt, up to $ 1000.These are not just pieces of paper
easy to manage, but you can spend a dollar with a cup of coffee and you don’t have to cut your gold bar a thousand pieces. And if you wanted to get your gold back, just take $ 1000 on bills
back to the bank to redeem them for real money, this time the gold bar,
whenever you need it… And of course, the paper began to be used as money
as a useful tool and be easy. But as time goes on, and due to macroeconomic changes, this bond between the paper receipt and the gold that represented them was broken. Now, explain how that it has led us away from the gold standard is extremely complex,
but suffice it to say governments tell their people that the government itself will be held accountable
for the amount of that paper money. Basically, we all said“Let's not just forget about gold
and trade paper instead ”.So the people went on trading receipts supported by nothing but the promise of the government. And why did that keep working? Yes, because of mutual trust. Or no real good paper-based funding, the people trusted the government, and thus fiat money was made. Fiat is a Latin word meaning “by the decision”.It means dollars or euros or other funds for that matter have value because the government orders that. This is what is known as the "official tender" -coins or paper money that must be accepted if provided as payment. So the value of today's currency actually comes from a legal status issued by the central authority, in this case, the government. So the model of trust has changed, in trust in somethingTHO trust in someone, in this case, the government. Fiat money has two main drawbacks:

1. Middle:

You have moderate authority controlling and releasing. In this case the government or central bank. And two, not limited to quantity: Government or central bank can print as much as they want whenever needed and blow upmarket financing. The problem with printing costs is that because it fills the market for a lot of money the amount of drops per dollar, so your money is less expensive. When you see the prices go up all these years not really prices go up as much as that purchasing power of your money goes down. You need a lot of dollars to buy something that used to be "less expensive".When fiat money is available, digital currency transfer was easy. We already have a middle around withdrawing money, so why not make money especially digital and let that authority write down who owns that. Today we use mainly credit cards, Wireless transfer, PayPal, and other forms of digital currency. The actual amount of cash on earth is almost ignored and it is getting smaller and smaller each passing year. So if money today is digital, How does that work? I mean, if I have a file that should be a dollar, what can stop me to copy it a million times and having a million dollars? This is called a "double waste problem".The solution banks use today"medium" solution; they keep a log on their computer which keeps track of who owns what. Everyone has an account and the judge continues the value of each account. We all trust the bank and the bank relies on its own computer, therefore the solution is in the middle read on this computer. You may not know this, but there are many attempts to build alternatives to digital finance, however, no one succeeded in solving the problem of double exposure without a central authority. Whenever you give anyone control in addition to the funding he gives them great power and this creates three major challenges: The first issue is corruption; destructive power, and absolute power
completely destructive

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