Sunday, June 9, 2013

What's the deal with BitCoin?

"Another currency, you say, why the heck would I want that?" It's a good question and one I asked myself recently when Bitcoin starting becoming a common

theme in a lot of the tech blogs I read. Before we start to talk about Bitcoin technically, it's better to clear out the philosophical reasoning behind it.
Uncontrolled inflation - Government needs more money? It prints more money, the money you have is worth less. That sucks.What's wrong with government backed currency (US Dollars, Euros, British Pounds, etc)?

  • The costs of money - I have to pay a bank to hold my money, they use my money to give other people money which they get paid for as well. I don't want to carry around fat stacks of cash so I use a credit card to simplify transactions but now I have to pay the credit card companies money. Sounds like everyone gets a slice of my money!

  • Control - If the government thinks I am doing something wrong, they have the ability to freeze all of my money. Where my money comes from and goes to is reported to them.

This is why we need a better currency and Bitcoin looks like the right solution. In my first post on Bitcoin, let's see if it's inflation-proof.