The Bitcoin Revolution: An Internet Of Money

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Length: 130 Pages
Format: PDF, EPUB, MOBI

Author: Travis Patron
Foreword: Wallace Wood

The innovation of bitcoin is perhaps the most intriguing development of the early 21st century. In a span of only 5 years, the digital currency has jumped from being traded at 4 tenths of a penny, to highs of over $1200. In that time, we've seen individuals, government organisations, and large corporations warm up to the idea that bitcoin may be a form of cyber money pundits have been predicting for years.

Outside the control of any centralised institution and owned by no one party in particular, bitcoin sets the stage for something bold and new. Operating by freely accessible technology, experts describe it as a breakthrough in computing science formulated upon decades of research.

The market of monetary innovation is entering the private domain. What lies ahead for political regimes who attempt with futility to regulate this ghost outside the machine?

Join us as we explore …
The Bitcoin Revolution

“What Patron has done here is to brilliantly reveal to us how the new era of digitized money is evolving. It’s the next important link in understanding the future … now! Others have said, “It’s coming.” Patron says: “It’s here!””

  • Wallace Wood, Technology Journalist, Houston, Texas

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Description

Book Excerpt:

Not only will bitcoin continue to spread until it is as socially accepted as email is today, but this rapidly expanding computer network has changed the paradigm on what defines money. The bitcoin economy represents a historical record of any past activity due to the nature of peer-to-peer timestamp verification. The blockchain ledger is a monetary image.

For the purposes of illustrating why bitcoin has redefined money, let us assume there exists two users on a blockchain – User A and User B. User A controls 3.0 million bitcoin on the entire network. User B controls 3.6 million. There also exists 14.4 million unmined bitcoin.

blockchain-diagram-a

User A has used their private key to authorize a transaction to User B worth 1.8 million bitcoin. User A sends this amount to User B’s public key. At this point, the transaction has been authorized by User A and is in the process of being confirmed by miners of the network.

blockchain-diagram-b

After the transaction has been confirmed, the bitcoin network now reflects the change in hands of the 1.8 million bitcoin User A sent User B.

blockchain-diagram-c

Note that no currency has moved from point A to point B, but an authorization on behalf of User A to alter the network in a way which increases User B’s control of the blockchain by a measurement of 1.8 million bitcoin at the expense of User A. In bitcoin, this ledger payment system is the money supply and is radically different from any type of money we have previously seen.

When an individual makes a transaction on the bitcoin network, no actual currency is moved. That is – no file has moved. No commodity or asset has moved. No private or public key has moved. Rather, the only thing which changes is the percentage of the blockchain ledger which User A & B claim control over. When a transaction occurs in the realm of bitcoin, the image of the blockchain is altered. Nothing ever changes but the composition of this blockchain record.

The blockchain is a historical record of the bitcoin economy. There is no separation to be made between the blockchain and bitcoin. They are one in the same. Without the blockchain, you have no bitcoin ecosystem. Without an accompanying cryptocurrency, you have no measuring tool to determine the ownership of the blockchain.

Money is now an image, rather than something which can be separated from the system itself. This image of money is being constructed, altered, and verified by the thousands of machines acting as miners across the globe, and it’s a composition on public display for all to see. The miners are the painters of this network composition. The users, the brush and strokes.

In the bitcoin digital economy, money is an image continuously being constructed, verified, and reattributed by way of cryptographic authorization.

“Tangible money, old-fashioned money … is a phantom from the past, an anachronism. In its place is an entirely new form of money based not on metal or paper, but on technology, mathematics, and science. This new ‘megabyte’ money is creating a new and different world wherever it proceeds. Money now is an image.”

– Joel Kurtzman, The Death of Money

With the intrinsically valuable property of decentralization, we have a monetary system that comprises a historical record of purchasing power at any point of time in existence. The timestamping function of the blockchain allows anyone to go back and publicly determine the holdings of any address (perhaps soon any individual).

A payment conducted with bitcoin represents a paradigm shift in our concept of money – one where there is no division between currency and the system through which it flows.

Bitcoin has redefined money. Money is now an image.