Bitcoin: 10000 feet Overview
Money, or ‘fiat’ money, started in China 1 during the Song dynasty and, ever since, people have been trying to get ‘money’ right. Traditionally, this ‘paper’ money has been susceptible to manipulation, overproduction, and tight regulation by governments and used as leverage by financial institutions. Additionally, transaction fees and exchange rates exist primarily because different nations have different forms of fiat. For the sake of argument, let's call these ‘ faults ’ of ‘paper’ money. In 2009 2 , Satoshi Nakamoto introduced the bitcoin, a fiat currency that is designed from the ground up to be free of the ‘faults’ but still satisfies the three primary functions of any fiat currency: (1) a medium of exchange, (2) a unit of measure & (3) a store of value. Bitcoin is a digital fiat currency that circulates in a globally distributed computer network called the blockchain. (Please refer to appendix 1 for our detailed analysis where we present a summary of advantages an...
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