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| Joined: | Mon Nov 21st, 2005 |
| Location: | California USA |
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But, they are digits with a twist. New bitcoins are generated via lottery within its proof-of-work system where the records of previous time-stamped transactions are hashed into a chain, which is verified by all the members of the P2P system. There is planned inflation of a known and slowing rate up to a point. After that, deflation is built into its structure. It is currently in this early phase of development. The longer the chain the more secure the system is by nature of the algorithms at work. For details, see the white paper. They are currently divisible to 8 decimal places. Transactions can be completely anonymous.
How resistant to attack this is has yet to be seen. There is one underway right now. How successful can this be? I have no earthly idea and could care less. For me watching the rate at which new ideas are spawned when people are motivated to produce solutions to ancient problems is what is important.
So, yes, digits, which I said I believe to be the future of money, sadly. But, these are digits whose movements are verified by hundreds of incentivized auditors 24/7/365. Hell, the FED won’t submit to a one-time audit by those for whom they supposedly work! Yet we are loath to stop using their product.