The Sun
The Sun
Technology has advanced rapidly in the last 30 years: Imagine telling someone in 1987 about the internet and what it could do… then tell them they could have this tool in a handheld cellular phone. It would be a head-spinner.
Almost everything has migrated online – from publishing to purchasing – and it seems now that ‘currency’ is also making the jump to integrate itself on the internet.
We’re talking about Bitcoin – it’s a term you may have heard before, but you may not be so familiar with what it actually does or how it works.
Let’s try and decipher what this ‘crypto-currency’ is all about…
Bitcoin is a digital currency that can be transferred from one electronic device to another. It’s like sending money via email. It’s completely decentralised, meaning that there are no banks involved and no charges for sending or transferring money.
A quick google search for ‘Bitcoin exchanges’ will bring you to websites that will allow you to swap some of your money for an amount of the currency.
As of mid-August 2017, it currently stands at an approximate value of one bitcoin to R60,000 (around $4,200).
Don’t be put off that one BC can cost so much, however: You can purhcase very small amounts – named ‘Satoshis’, after currency founder Satoshi Nakamoto – from R1 onwards. It is currently 1,690 Satoshis to one rand.
Get ready for this: Bitcoin miners are mathematicians and software professionals who are able to take data from computers all across the world, which generates currency. They are reaching into computer software, and pulling out what’s needed for Bitcoin.
Miners and their specialised computers compete against each other. When a miner verifies a transaction, they receive a small amount of Bitcoin. This is how new bitcoins are then introduced into the system.
This truly is our generations ‘internet on the phone’ moment.
Will you be using Bitcoin? Or are you already on board? Let us know what your thoughts are in the Facebook comments.