Author, digital currency creator talks the future of Bitcoin
Money expert and computer scientist Sean Worthington joins the Matt Bubala Show to discuss bitcoin and the future of digital currency. He is the author of Beyond Bitcoin: The Future of Digital Currency , where he discusses monetary systems. Worthington explains how past transactions cannot be deleted, so it tracks money from person to person. This process helps track how much the public is adding to the economy.
Bitcoin had some highs and lows this year and Worthington explains to listeners why. Some are afraid to invest in bitcoin due to fake or counterfeited money. He says that this is a way to “access all your money in one account.” This bitcoin account, also called a Wallet, allows you to store the cryptocurrency on a computer or even offline for safe keeping. The two most popular ways to get bitcoin are using a cryptocurrency exchange marketplace, where you can exchange money for the current price of Bitcoin, or a portion of a Bitcoin. The second most popular way is helping the bitcoin market process transactions. This idea falls along the lines of what Worthington calls “mining bitcoin.” When crypto money was created, it was to be treated like “gold mined out of the ground as an artificial gold mine.” Servers were created to handle transactions, and a reward would go to people who lend their computers processing power to process and validate the transactions.
So why did bitcoin became valuable, and then drop? Worthington compares it tot he 2008 housing market crash. “Banks want to loan to safe investments,” he says. “People started borrowing on credit cards, taking savings out and then the market spiked and it popped.” Blockchains tracks all transactions in a public ledger. Some places like South Kroea are making cryptocurrencies illegal. “We will see what weapons come out,” he says.
For more information on his book, visit his website.