- This arrangement has some stunning advantages over traditional currency or credit cards:
There’s a whole lot of really cool, really complicated math involved in Bitcoin, designed to keep it secure and to prevent Bitcoin inflation.
- There’s no government to decide when to print new money in this case, so new bitcoins are “mined”—created—through a complex scheme you can read about here.
- When you get a Bitcoin address—something like an email address—you also get a complex password known as a private key, which you need to access your stash.
- At that point, you can transfer money to other people by sending it to their Bitcoin addresses.
- Or if your Bitcoin exchange goes out of business, which has happened plenty; in fact, 18 of the first 40 exchanges had gone under as of 2013, taking all their clients’ money with them.
Man, if anything needs the “now I get it” treatment, it’s Bitcoin. You hear about it all the time in financial and technical circles—but most people really don’t grasp it.
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