14 Jul
2014
14 Jul
'14
1:44 p.m.
At 12:21 PM 7/14/2014, Eugene Salamin via math-fun wrote:
Why is Bitcoin trustworthy?
Money is based on the theory that the value you assign to something today will be similar to the value someone else assigns to it in the future, so it's safe to trade something you value (your time, your house) for money, instead of a direct barter for something else you value (ie; "will work for food") Producing gold requires a lot of work, and the gold itself is durable and portable; which is why gold is traditionally a trustworthy measure of stored value. Similarly creating a bitcoin requires a lot of work. The cleverness in the bitcoin system is that the "work" is intimately linked to the process of recording and verifying transactions in bitcoin.