Bitcoin info- Concept, Security and Future

2. Bitcoin really is a new kind of money. It is a new concept in how you can 'do' money, in that it is a virtual or digital currency that isn't issued by a central bank. It isn't created by some central corporation. Instead, everyone who is participating in the Bitcoin network – so everybody who is running the Bitcoin software on their computer in communicating over the network with other people who are running the Bitcoin software – all of those people together collectively perform the functions that a central bank would typically perform. Those people all create the currency. Those people all make sure that the transactions that happen are valid and that invalid transactions are rejected. So collectively, together, everybody who is running the Bitcoin software makes the system work. And that makes it very resilient, really. It is resistant to central control. It is resistant to manipulating the money supply. It is resistant to censorship. It is resistant to a lot of other bad things that have happened with our traditional fiat currencies.

3. Bitcoin is also like cash. If you own some Bitcoins and you are holding some Bitcoins in your digital wallet then that is like holding physical cash in your physical wallet. If somebody steals that wallet, then they have got your Bitcoins. You asked, will I lose all of my money if a server crashes? That is not an issue. All of the tens of thousands of Bitcoin miners looking for Bitcoin actually hold a record of all the transactions that have happened on the Bitcoin network. There is no one single server that can crash and take all of your Bitcoins away. It is very distributed and reliable in that way. But again, you are responsible for holding what I call your ‘private keys’ that let you spend your Bitcoins. And if you lose your private keys, either to a hacker attacker, or if your computer crashes and you didn't have a backup of your keys, then you can lose your Bitcoins.

4. I think Bitcoin will be an answer. I still tell people, only invest time and money into Bitcoin that you can afford to lose. It is in early adopter stage. I would still consider it a high-risk investment, if you want to think of it as an investment. It could be really huge. I think there is no theoretical reason why Bitcoin couldn't grow as large as some of the major national currencies. There is really no technical reason why it couldn't and no theoretical reason why it couldn't. There is a huge network effect with money. The more people using a means of exchange, the more valuable it becomes to use that thing as a means of exchange. That is why gold is king, and not platinum or silver. There has been a huge network of people finding gold to be a great stored value, and in certain situations, a means of exchange. Bitcoin has a huge head start on any other alternative.

5. We are still really at the early adopter phase. We have been since Bitcoin started. Adoption is actually happening pretty quickly. Right now, all of the Bitcoins in the world are worth somewhere over a billion dollars. That gives you a sense of scale on how big the Bitcoin economy is. Last year I was doing some research and I was looking at how big is Bitcoin relative to some of the smaller, national fiat currencies. They assumed that Bitcoin was probably smaller than any other national currency. And to my surprise, I actually found out that there are some small nations where the national currency is worth less than Bitcoin

6. Sources for presentation: http://www.coinsetter.com Article: http://www.peakprosperity.com/ Template: http://www.free-power-point-templates.com/