We will talk abt the most exciting and interesting, and probably the most important technological innovation in computer science in the last 20 years.
I am here to talk abt bitcoin. Bitcoin is digital money but is so much more than that. Saying Bitcoin is digital money is like saying the internet is like a fancy telephone. Bitcoin is money, a curency and an international network of payment and exchange that is completely decentralized. It does not rely on banks and governments.
You can send bitcoin from one place to another instantaneously, securely and for minimal fees. 2 days ago we saw one of the largest recorded transaction, 150 million between to wallet accounts. This allows you to grasp how disruptive this technology is going to be. Bitcoin came in the year 2008 by Satoshi Nakamoto. He published that he is has found a way to have a decentralized network that could come to consensus without central authority.
Bitcoin is not a company or an organization. It is a standard or protocol like TCP/IP or the internet. It is not owned by anyone. The entire network agrees on who has the money and where the money is sent to.
Currency is just the first App that we can build on a distributed consensus system. Other applications include distributed fair voting, stock ownership, asset registration, notarization and monay other applications we never thought of before. since the Internet, I have not felt this feeling of being overwhelmed by the many possibilities that I saw. This is why I see bitcoin is so important. Currently, six and a half billion people have no access to traditional banking. They operate in cash based societies and have little access to international resources. 2 billion of these people are already on the internet. They can connect to the world of finance and that which is peer to peer. Bitcoin is the money for the people.
First, we are going to effect the remittance companies that are controlled by the exploitative and the corrupt. These organizations make enormous amount of profits for a function that could be done by bitcoin for free.
As a business we have 2 problems. First our products and services need to cross borders. With the internet this is solved. Next, how to we get paid? Bitcoin solves that part. We can recieve the small amt of bitcoin which is as small as a hundredth of a bitcoin. We can perform micro transactions. We can also send millions of dollars worth. Either way , we are only charged the same because it depends on the size of the transaction in kilo bytes and not the content.
One of the important parts of bitcoin is neutrality. The internet does not differentiate between a large organization or small organization. It does not know the difference between CNN and an Egyptian blogger. Bitcoin is neutral between sender and reciepient. This neutrality pushes innovation to the edges of the protocol allowing the same phenomena we saw on the internet. Innovation without Permission. With bitcoin, you do not need to ask for permission if you want to build a new financial service or application on bitcoin that puts you in contact with millions of users.
2 billion people are on the internet, and 1 billion of them have bank accounts. We can change that. It is not going to be easy becaiuse When you throw a disruptive technology to the most powerful organizations, they don't like it. We are still int he early stages. In the expression, first they ignore us, then they laugh at us, then they fight us, then we win. We are still at the "they are laughing at us" stage. that is ok, cause by the time they would fight us, we would have won.
Bitcoin is the Internet of Money. It is only the first application. If you grasp that, you can look beyond the price and volatility. Because at its core is a revolutionary technology that will change the world forever.