Bitcoin is not the first electronic currency, Linden's Second Life or even Vcoin VTC was born a long time ago Bitcoin. However, the increase / decrease in the price of copper Bitcoin rapidly in recent months has attracted worldwide attention, sparked heated debate. So what is behind Bitcoin Council and its fate in the future will be like?
1. All official coin ever, whether paper money or electronic money, have a common characteristic is to be "under one roof", ie a single entity by the release, ensuring and implementing the "clearing" (clearing) in many cases. The reason the official currency requires state agencies pledge to those who use it believe in the ability to "store value" of money they hold do not lose too fast (remember this only a necessary condition but not a sufficient condition, official currencies but depreciated too quickly and people / users find ways not hold them too long). Bitcoin is the first currency without state bodies of security, right from the stage of release until the "clearing".
Bitcoin inspired form peer file sharing via bittorrent, but its creator, Satoshi Nakamoto, had the brilliant idea to overcome the difficulties that a peer electronic currency will meet right. The first obstacle is who is going to release the money, and how to allocate the new money is created out how to be fair? If you recall the island currency in Yap stone money are informal in nature (as are many other commodity currencies, such properties also), means that people create money and self talk to each other without the intervention of state agencies. But to get the new money, the people of Yap Island to spend time, effort, and exploit new resources. The idea to bring functional currency "store of value" as well as "stored labor" has since ancient times, is applied at Yap Island several centuries ago, and in 2009 was applied Satoshi Nakamoto Bitcoin.
In principle, all those who participate in the Bitcoin network can co-create new Bitcoin - the process of creating this new currency called the "mining" (mining). Perhaps the term "mining" was chosen not by accident because the money creation process is the same process of mining in two important points. First you have to put effort and time to "dig", you also need to have "capital" to do this. If you have only "capital" but did not know how or do not have time, you can sublet "capital" for those who do their own services (will explain further below). Second, the number of Bitcoin you "dig" is diminishing over time (a form of non-renewable resources) and vary depending on the number of participants "dig", as many people trained, the time and effort you spend Bitcoin going out to have a more costly.
Bitcoin skyrocketing price of the last year, from less than US $ 10 earlier this year to nearly $ 200 in April and $ 1,100, equal to 1 ounce of gold, at the end of the year.
