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Title: Why Bitcoin has value Post by: tjohej on November 13, 2012, 10:53:14 AM Many of the naysayers that don't understand Bitcoin believe it may crash at some point because they don't see how it gets its value.
For me it is valuable because I trust it is the first cryptocurrency introduced and also because I understand it, not to mention I trust people accept Bitcoin for services or goods. Though the strongest reason I personally find it valuable is because I understand it uses like 3 things: P2Pnetworking(I think anyone can understand that, or at least if you think file-sharing networks), then the 2 harder parts are Proof of Work(think the hashcash idea presented for the antispam problem and yes it is used today to some extent) Proof of Work is used for generation of Bitcoins + to put a "stamp" making transactions valid doing a mathematical brute-force procedure whose result can be verified faster than the blink of an eye. The last technology cryptography. Now this is the part that confuses many people, making some people falsely believe the Bitcoins get "encrypted". Only digital signatures are used from cryptography, and that's to sign transactions for BTC you want to send somewhere. |