If you have invested just a hundred into bitcoin in 2011, you could have made almost 2 million
dollars today.
You could have become a millionaire just with a hundred dollars, maybe a billionaire with
couple of thousand of dollars.
And there are people who made fortune out of it!
Bitcoin is the hottest topic today because its price is skyrocketing, it went from a
single dollar in 2011 to over 18K in recent days.
And a lot of people are wondering if they still should invest in bitcoin, is it too
late or there is a still fortune to be made.
And thats the question we will try to answer in this video, but before that, we have to
understand what is bitcoin in the first place and how exactly it works.
for much of history we have used Gold, silver and some other metals as a form of currency
but the most famous of them was gold.
In fact, it was a used until 1971.
And thats pretty much the reason why we have bitcoin today.
Look, we have been using paper money for centuries.
But it was different then, because it was backed by gold.
That means that, every dollar use to represent a certain amount of gold in the bank.
So instead of carrying a pack of gold with you every time, you could simply carry papers
and get your gold anytime you want.
In other words, you cant simply print money like governments do today, unless you have
gold to back it with.
And thats where the problem started.
Right after the second world war, United States dollar became an international currency because
United States had 70% of all the gold, so they could print more money than anyone else.
But Unfortunately United states printed more money than the amount of gold they had, so
when other countries requested US to exchange their dollars with gold.
US simply replied, oops sorry, we no longer exchange dollars for gold because we have
printed more than we have, and thats what happened in 1971.
And since then, our money is simple a piece of paper that doesn’t have real value and
the people in power can print as much as they want.
and Thats why prices increase every year.
But it didn’t stop there, it crushed the whole economy in 2008, and guess what did
the governments do to save economy!?
Yes, exactly they printed more money, United States alone printed almost 4 trillion dollars.
And thats the basic problem with paper money we use right now.
Its centralised, controlled by a small group of people and it can be easily created out
of thin air
So a guy named Satoshi Nakamoto came out with a new currency that is decentralised because
its controlled by everyone who is in the network, not even the government and it cannot be created
out of thin air, in fact, limited amount of them exists like gold and named it bitcoin
So lets find out how exactly it works.
Bitcoin woks on a technology thats called blockchain, its pretty complicated to understand
but here is a simplified version.
Everything on internet is a copy of of the original.
This video is a copy of the original video thats on my computer and i can create as many
copies as I want and the same applies to everything else thats on the internet.
Articles, pictures, you name it.
So its impossible to create a digital currency because you can simply just copy it.
And thats what blockchain is for.
Everyone in the network can see how every bitcoin moves from one persons to another.
In fact you can see the entire history of each coin once you join the network.
So if anyone tries to corrupt the system, the entire network will find that out immediately
and reject it.
Therefore its almost impossible to cheat.
All the new transactions are collected into a block and a new block is created every 10
minutes and all of these blocks are connected to each other and thats why its called blockchain.
But no matter how advanced is this technology, it still can be hacked, right?
Not exactly, Every new block besides recording new transactions,
also includes all the transactions that has ever been in the history of the network and
for the system to recognise a block, it must match all the other blocks that has ever been
created in the network, in fact it also has to match the next block that will be created
in the next 10 minutes and all the future blocks.
On the top of that, every single block and every single transaction has an advanced cryptography
and if a new block will be added that doest match all the other blocks that has been created
previously and will be created in the future, the cryptography in every single of them changes,
which makes it even easier to recognise the corrupted block.
And this makes it almost impossible to hack, not because no one knows how to do it, but
rather the computer power thats needed to do that should be bigger than the entire network
which consists of million of users.
And the bigger the system grows, the more secure it gets.
So if you want to send money, you dont have to go to a bank or any third party but rather
you can do it at your fingertips.
Especially when it comes to sending money to another country, you dont have to wait
for days for the bank to do, but rather wait for 10 minutes once a new block is created.
But the main question is, should you invest in bitcoin?!
The answer is yes and no!
Yes because, Obviously, it seems like thats the future of our money,
but bitcoin isn’t the only cryptocurrency out there, there are also Ethereum, litecoin
and others.
But bitcoin is the one thats growing the fastest.
And thats the problem, just since January of this year, it has grown from less than
a thousand dollars to over 18K and anything thats growing too fast will eventually collapse
and come back to its real value.
But we dont know how far it will go, it might go to 20, 25 or 100 thousand before it collapses
so you have to make your own research before you invest in bitcoin.
And now its your turn, what do you think?
is bitcoin is going to be the future currency of the world or its just a hype thats going
to disappear after a while.
I would love to know your opinion.
and as always, if you have enjoyed this video, make sure you smash that subscribe button
to see more similar videos.
thanks for watching and see you in the next one.