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February 27, 2014

Mt Gox – Bitcoin / How Bitcoin is Supposed to Work

Filed under: Uncategorized — Steve Krupa @ 2:56 pm
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I have to admit, I am hoping Bitcoin survives its current onslaught of controversy. It’s hard to trust governments, and I find the idea of a borderless currency very intriguing. I am also very curious about the prospect of a technology that allows for services to be built around the concept of programmable money.

I am going to post more on these issues in the future. For right now I thought the attached video would be interesting for those of us looking for insight into the failure of the Mt Gox exchange. After all, as you will see, the intent of the Bitcoin protocols are to make stealing money extremely difficult.

Another take away from this video might be to note how deeply computer science and complex mathematics have penetrated the essential day-to-day activities of our lives.

The prospect of Bitcoin is one of a supply of money and a corresponding anonymous payment system that is controlled by computers and their operators/programmers. Bitcoin’s first value proposition is that it has the potential to be a more reliable store of value than a fiat currency and banking system regulated by a sovereign government.

As you will see, the inter-workings of Bitcoin are very interesting, complex and hard to understand. We are aggressively building modern society around computer technology (including complex mathematical encryption), and to me, this video gives some sense of what that actually might mean.

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