How Does Bitcoin Work? - Student Lounge

This topic has 12 replies, 8 voices, and was last updated May-17 by AjFinance.

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- Reena
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  31 Mar 2017 at 8:26 pm
  
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  I have seen news recently of this digital currency. And I don’t really get how it works, why does anyone trust it, how is this superior to current systems and what does it mean for the future for currency?
  
  Any thoughts, or if any of you hold/trade Bitcoins even?
- Reena
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  31 Mar 2017 at 8:28 pm
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  Oh, I must also add that I’ve read these articles as references:
  - http://www.economist.com/blogs/economist-explains/2013/04/economist-explains-how-does-bitcoin-work
  - http://en.wikipedia.org/wiki/Bitcoin
- Zee Tan
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  31 Mar 2017 at 8:56 pm
  
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  I came across Bitcoin several years back. I thought it had potential but the idea was way too radical for my brain to comprehend (whether it would work out as a system or not).
  
  I’m still undecided on it but I haven’t really read up on it recently.
- Sarah
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  31 Mar 2017 at 9:34 pm
  
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  I can’t really get my head around the concept of bitcom but I can see it being exploited for dark purposes. This is right up Artemis Fowl’s ally.
- AjFinance
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  01 Apr 2017 at 8:08 am
  
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  I can’t really get my head around the concept of bitcom but I can see it being exploited for dark purposes. This is right up Artemis Fowl’s ally.
  
  +1
- Sarah
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  01 Apr 2017 at 8:52 am
  
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  @AjFinance I was right!
  http://www.bbc.co.uk/news/technology-22120833
  Though I’m not sure why anyone would care that the Winklevoss twins own 1% of all bitcoins.
- Sophie Macon
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  01 Apr 2017 at 8:56 am
  
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  I don’t know. It just looks so prone to fraud?! I suppose Winklevoss bros are one of the few “famous people” publicity they get. Unless we don’t know what’s going on.
- imdnextbuffet
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  03 Apr 2017 at 3:45 am
  
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  In Bitcoin we cannot trust – hot money got cold too soon.
  
  cbsnews.com/8301-505144_162-57580115/in-bitcoin-we-cannot-trust/
- hairyfairy
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  03 Apr 2017 at 3:51 am
  
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  I think Bitcoin is conceptually the same as any currency, so technically it should work. @imdnextbuffet’s article highlights a major flaw – there is no government to back or regulate, so it literally is a reflection of aggregated barter trade – prone to very high volatility depending on market demands.
  
  One can argue that this is a fast reaction and reflection of pure market demands but realistically this is not feasible for everyday life. You need a steady currency to conduct transactions. At least by humans, or else all money transactions will need to be done by computer (like trading).
- microeconomist
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  23 May 2017 at 11:37 am
  
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  Hope this helps:
  https://www.khanacademy.org/science/core-finance/money-and-banking/bitcoin/v/bitcoin-what-is-it
- Reena
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  23 May 2017 at 9:09 pm
  
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  Thanks @microeconomist, it does! It’s interesting to see how this develops ….
- Zee Tan
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  24 May 2017 at 3:16 am
  
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  Hope this helps:
  https://www.khanacademy.org/science/core-finance/money-and-banking/bitcoin/v/bitcoin-what-is-it
  
  Love Khan Academy!
- AjFinance
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  25 May 2017 at 2:44 pm
  
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  Hope this helps:
  https://www.khanacademy.org/science/core-finance/money-and-banking/bitcoin/v/bitcoin-what-is-it
  
  Love Khan Academy!
  
  @Zee Me too! He has explained the financial and housing crisis brilliantly. I also pick random topics to study whenever I can.
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