Letter
from Lhasa, number 377. Decoding Bitcoin
by
Roberto Abraham Scaruffi
Kramer, C., Decoding Bitcoin. All You Need To Know About
The New World Currency, Cooltura, 2015.
(Kramer 2015).
Claude Kramer
In a few words, this
booklet represents what bitcoin be:
“Bitcoin is a system of
peer-to-peer relationships that form a network and, using the Bitcoin software,
create a new digital currency, the only currency not issued by any Central
Bank. Unlike other systems, Bitcoin is a decentralized monetary system which is
not governed by the laws of any public or government body.”
New bitcoins, until a
prefixed amount, are mined solving an algorithms, what only powerful computers
and computers’ networks can do, at high costs so that there be not a real seigniorage,
or be it reduced.
The inconvenience is
that the value, so the exchange rate, of bitcoin is extremely volatile. A more
serious inconvenience is that it could be easily sunk since governments’
interferences against it.
The use of bitcoins is
relatively anonymous. At the same time, there are serious security issues, as
many cases have demonstrated. A normal bank may be rescued from government. Sometimes
hacked sums may be recovered from the owner. On the contrary, bitcoin transactions
are irreversible. What is eventually stolen is stolen and lost from the
legitimate owner.
Using bitcoins one avoids
the banking system, although one may need specialized companies for selling and
buying bitcoins, so for exchanging them with other currencies.
For details about the
bitcoin algorithms and other technical aspects of bitcoin, one needs more
specialized literature. This is only a short booklet for a very fast
introduction to this bitcoin new world.
Kramer, C., Decoding Bitcoin. All You Need To Know About
The New World Currency, Cooltura, 2015.
