The book, the pen, and the ink

Great piece, thank you.

Real Virtual Currency

One of the issues that Bitcoin suffers from the most is a lack of a concise explanation that people can latch on to.

I would like to propose a straightforward analogy that may help introduce individuals to the way in which Bitcoin works; the actual mechanism. It is comprised of three items: a book, a pen, and ink.

1) The book

All of Bitcoin centers around an enormous book called the “blockchain” that keeps a record of every single Bitcoin transaction that has ever occurred. This is why Bitcoins are nearly impossible to counterfeit, because every time you spend some, your request is checked against this huge ledger.

People called “miners” surround this book, and do the job of verifying transactions. For some reason I like to imagine them wearing hooded cloaks. Every 10 minutes a lucky miner is selected from the group, and is allowed to approach the book…

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