By now you have probably already heard about Bitcoin – an Open Source peer-to-peer digital asset where no single entity or individual has control.
Whilst its likely that the lack of control will be seen as a play against central banks, or even governments – the most interesting aspect is the peer-to-peer networking which makes Bitcoin permission-less.
January 2019 marks the 10-year anniversary of the ‘Genesis’ Block being created (mined).
In the same way the first iPhone changed the whole concept of mobile communications, the moment the very first block was mined will be remembered as one of the most important moments in money.
Whilst Bitcoin in itself may never be the token, or currency that we will all use day to day. It’s inception has given us a small taste in , and the principal of secure, peer-to-peer money.
But what does all this really mean?
Money is typically defined as a token used for the means of exchange for goods and services. Whilst money is more often than not spend digitally, this is a represenation of the phyisical token – cash. Both co-exist within the same financial system to makeup what is our economies.
Bitcoin is an entire digital token, its impossible to exist as a physical entity due to the nature of the cryptography which secures the token.
The magic isn’t in the idea of an entirely digital token – these are nothing new. What’s different is how the token has no single point of control.
The lack of control is ultimatly that which gives Bitcoin it’s value. All other digital tokens, or even traditional money are controlled, and effectively has it’s value already defined. Bitcoin moves away from this concept and has a value of that defined by the users of the tokens.
Bitcoin has the potental to become the global digital currency.