Hey guys and girls!
Welcome back to the history of digital currency mini-series, this is Part 2.
Just a recap into last weeks episode, we learned about David Chaum, a computer scientist and
cryptographer who introduced the idea of digital currency in a research paper he wrote in 1983
which I've added a link to it in the description below if you're interested.
Then he went onto found DigiCash in Amsterdam.
However, that filed for bankruptcy in 1998 the reason for he says was because e-commerce
hadn't been fully integrated into the internet yet.
We then went onto talking about E-Gold, which is a digital currency backed by real gold
to secure its monetary value.
However, that was shut down by the United States government (Hey Uncle Sam!) when the
platform was exploited by the underworld.
We then talked about Liberty Reserve which was again shut down by the United States government
for the same reason as E-Gold, having too much illegal activity on the platform.
And I pointed out that the biggest problem for digital currencies in the rise of E-Gold
and Liberty Reserve was the fact that it was a centralised ledger which meant it could
be shut down unlike the cryptocurrencies we have today.
We also touched on QQ coin from China and PayPal.
Alright, that's enough of an introduction.
My name is Jake Owens and this is Millionaire Mindset Hub.
Alright, lets get into it.
So, we talked about what we discussed last week in the introduction to this video.
And now, our mini-series leads us to 9 years ago in 2008, just as the financial world was
melting down around us, something beautiful shined.
A paper describing digital currencies and the foundations of a new currency appeared
by an unknown person or group who goes by the name of Satoshi Nakamoto.
Just an FYI, if you're interested in that paper I've linked to it in the description
box below.
This paper described a currency that wouldn't have a centra ledger system.
This feature would completely disable the governments ability to shut it down just like
how they did with E-Gold and Liberty Reserve.
The new currency would also be able to process transactions within 10-Minutes between accounts
which was unheard of in the central ledger system world as these same transactions would
usually take days or weeks to send money around the world.
The new currency was designed so that everyone had the same rights under the new financial
system where their account couldn't be shut down, there would be no delay in transactions
taking place and that no one could tamper with or influence the system.
This currency was made by the people for the people.
This currency also didn't incur additional fees as there was no need for a middle man
such as VISA or banks which are both known to cripple businesses in retail for their
outrageous additional fees.
So, what was the currency they envisioned?
Well, that currency is Bitcoin.
Bitcoin was conceptualised in and put together in 2008, however the currency wasn't actually
developed and didn't come out until 2009.
And after it came out in 2009, for years the currency was only talked about and used within
high level thinkers such as mathematicians and also the underworld such as hackers and
people who used Bitcoin for dark web market transactions to buy services and products
such as illegal drugs and weapons online because it is difficult to trace those transactions.
Bitcoin didn't really take off until late 2016, 8 years after Bitcoin was conceptualised
but 7 years after being built when the mass market and investors poured in.
We won't go into the details of why the currency exploded and people started to throw money
at it in this video because it's such a big topic but we're going to be going into that
within a seperate video.
If you'd like to check out the graph that shows Bitcoins explosive growth since 2016
I've put a link to it in the description below.
It's important to mention that Bitcoin does have some significant issues, such as privacy
since transactions can be traced and another issue is its high volatility of its value.
Because of these two reasons, and because people simply thought that they could do better,
people started to create their own currencies which are called alt-coins.
In 2011, the first alt-coin which was named Namecoin was created.
It's unique difference is that it was able to store data within its blockchain.
Some other alt coins which you might be familiar with is Dogecoin, Monero and Ethereum.
In fact, Vladimir Putin and the Russian government endorsed Ethereum's blockchain technology
which just shows how powerful these currencies and blockchains are becoming, not only to
high level mathematicians and hackers but to major world governments and the financial
market.
Hey guys and girls!
Thanks for watching :-)
I hope you enjoyed the episode!
If it provided you with any value, and you feel that way inclined please hit that subscribe
button and like the video
If you've got any questions or just want to reach out and say "Hi!" feel free to comment
below or PM me :D
Again, thanks a ton for watching!
I'll see you guys in the next episode
Cheers :-)


For more infomation >> 10 - Lauren Trimble - building accessibility into the JSTOR and Artstor digital archives - Duration: 12:06. 


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