Bitcoin Definition?

festeris101 · Feb 26, 2014

I'm kinda old and kinda confused about this whole Bitcoin concept. Is real currency, is it virtual? Is it Monopoly money?

Could someone break it down for me in a few sentences or less?

Thanks for helping out the pre-elderly...

kaushalkanodia · Feb 26, 2014

it is a virtual currency !

bondart · Feb 26, 2014

id like to know the answer to this incredible mistery two!

jazzc · Feb 26, 2014

https://bitcoin.org/en/faq#what-is-bitcoin

Freyr · Feb 28, 2014

There's another very good explanation on the web. Google for "Explain Bitcoin Like I'm Five" (I'm not allowed to post links, would post the URL otherwise)

soreman · Feb 28, 2014

The way I see it is that BTC is "intangible asset". Sure it does have some properties of money (currency), but it does not comply with all of the requirements to be money...
It is similiar to a buying data in a sense, as if you would buy data from someone.

Freyr · Mar 2, 2014

Yes. It's more similar to limited assets like gold than to fiat currencies. It's basically like gold that you can transfer over the internet.

By the way, fiat money is also 90% digital. It consists mainly of some database entries at the central banks. The "tangible" money (banknotes and coins) represent only 10% of the whole circulated amount. The biggest part already flows through digital networks.

The biggest difference between BTC and fiat are:
- There is only a limited amount of BTC
- BTC is decentralized

jazzc · Mar 2, 2014

soreman said:
but it does not comply with all of the requirements to be money...

Money is simply a means of transferring wealth. Every commodity can qualify as money, so long as it is used as such. That 's why historically, even shells have been used as money.

Bitcoin Definition?

festeris101

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kaushalkanodia

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bondart

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