Bitcoin and Blockchain explained
What is Bitcoin, the Blockchain and Why this Currency Matters
What is a bitcoin?
Bitcoin is a crypto, digital currency created by individuals and not controlled by anyone. Bitcoin is a virtual currency that provides easy access to banking for many underrepresented people without access to traditional banking institutions.
How many bitcoins are their in the world?
Every four years, the reward for bitcoin miners is cut in half - and the maximum amount of bitcoins ever to be reached will be 21 million coins. It's estimated that this will be reached by the year 2140.
There are only a few million bitcoins currently that have been mined by developers and individual bit miners.
What is the blockchain?
The blockchain is the underlying technology behind the virtual currency bitcoin. It's a shared, public and open ledger that proves the legitimacy and existence of one's coin. Blockchain is a verification technology that is the infrastructure for all bitcoin currency transactions.
Interview on Bitcoin and the Blockchain Technology:
Newscaster: Okay Ross, so, today let's talk about Bitcoin and the Block Chain technology. Can you tell us a little bit more about this blockchain and bitcoin technology?
Bitcoin expert: So Bitcoin is sort of one of these ideas that have been surrounded in mystery, the enigma wrapped in an enigma. Bitcoin provides a way in which anyone around the world can transact with one-another. They can send money, they can receive money without going through a traditional middleman, which is the bank, right...
Newscaster: So it's like invisible currency?
Bitcoin expert: It is, it's virtual currency. I mean virtual currency has been around for a long, long time but Bitcoin is one of the most popular ways in which virtual currency is taken on ... And underneath Bitcoin is what's called a "blockchain," so every time a minor goes and gets Bitcoin or this long string of letters and numerical and alphabetic letters, they then have currency. And that currency and that particular block-chain is now changing the way that the financial services industry is looking at making transactions faster, smarter, and removing the barriers for average consumers.
So I know this technology through a company called "Coinbase" which has literally taken off; They've received millions of dollars investments from Andreessen and many other venture capital companies out there as well as some of the traditional players on Wall Street. I learned about the block-chain technology through Coinbase. I said, "Wow, I like their website, I like this concept that you can save money and you can also not have to worry about having that middleman, the bank, take a percent every time a transaction takes place."
Bitcoin expert: ... So I learned about it through Coinbase and then I started to explore their underlying technology. What I found was a technology, this Block Chain, could potentially change the way that third-world countries transact, whether you're in Africa or India, anywhere around the world that you're able to send and receive money in a new way, and so it was through Coinbase that I originally discovered that.
Newscaster: So since it's changing the way we deal with currency, do you think that they'll be around twenty years from now?
Bitcoin expert: Oh, well, people attack Bitcoin all the time, I've been a skeptic myself. I don't use it for most of my transactions, I've used it here and there, with all candor, but I think some version ... I don't think Bitcoin will be around. I don't see it being the primary currency twenty years from now; I'll get a lot of flock for that but that's what I believe. I believe Blockchain, which is the technology underneath it, will be around, so that's why we rank them on our website AngelKings.com. We ranked these startups, the financial services startups, we ranked the technology, not just another company like Coinbase. I don't think Coinbase will be around twenty years from now, that's why I wouldn't had invested in it, I think the valuation for it is way, way too high; but Block Chain will be, and it's on our website as one of our top financial services startups.
Newscaster: So then how are they going to build the community around the technology instead of the Bitcoins since there is so much skepticism there?
Bitcoin Expert: That's a hard play! I mean if you go to a venture capital group like ourselves at Angel Kings and you say, "I've got another Bitcoin app or clone of another clone," ... I mean I've been pitched many, many times and my first ideas say, "it's skepticism, step away, I am not interested." But, if you say, "I'm building something on-top of the underlying currency of Block Chain," then I get excited, because that's where the next twenty-thirty years are going to evolve.
Newscaster: So then, their timing, do you think they came in too soon with such a new technology?
Bitcoin expert: No, I think the developers have stopped mining and now just develop toward, you know, Block Chain technology. I believe there's a company, "Block Guy," that a friend of mine is invested in and it's more about the Block Chain now than just the brand of Bitcoin. Bitcoin has been a little bit nebulous as well as shaded by a lot of the bad transactions with the market places we've seen recently in the news, but the Block Chain will preserve and will be a big thing twenty years from now. The strategy is that if one company brilliantly takes over Block Chain they could turn into a multi-billion-dollar company themselves.
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