So I remember back in 2014 I stumbled upon bitcoins, I specifically remember the price being around $200-$300 per bitcoin. I thought about getting at least some but it was brand new and no way to actually use them but to just say you had bitcoins. I regret that now considering one bitcoin is almost $28,000!
So to give you a high level explanation on what bitcoins are, because most people have no idea and its a hard idea to wrap your head around. First off bitcoins don’t physically exist. They are digital representations of currency. This is a little bit like the numbers that show your bank balance until you spend the money. Bitcoin “miners” are the record keepers of all the transactions, kind of like having a google docs that multiple people work on where the updates are made immediately so there isn’t multiple copies of the same changed document. These miners utilize the processors in their computers to do mathematical problem to verify a transaction is a true transaction and not a fake one. For example when someone sells or buys bitcoin there is a algorithm that is created and the other side has to solve it and mark that transaction in the master ledger.
Now that bitcoin is more popular even PayPal offers a bitcoin purchase option. But the question is is this an investment or a new payment system. There have been some online businesses that has embraced the bitcoin payment. A few years ago bitcoin payments were mostly used for illicit purposes online, but now that there is more of a presents will this become a standard payment method?
One thing that has came out of bitcoins that has helped the ITSEC community is the blockchain. This standard has been applied to many major businesses due to its grater trusts, security and efficiency. Integrity is kept due to the fact that once an entry in the ledger has been written it cannot be changed in any way.
What Is Blockchain?
The blockchain is a set of blocks that tie together to form a chain. The blocks confirm the exact time and sequence of transactions. Each block after verifies the authenticity of the prior block. This can be used many ways for tangible and non-tangible items, With bitcoin for instance the asset would be non-tangible because they are digital assets.
Think of it as like trading baseball cards. There is no physical money being traded but their value that is being traded. Then once you want to cash out on your trades you would sell your assets to another person who would still like to have them. Just like anything else the price goes up with demand. I believe that since PayPal started to allow users to buy bitcoins online with your account they have been more easily sought after Hence more people wanting to get in on the action.