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Bitcoin: hype or revolutionary new money?

Bitcoin is growing and growing in value. How is it that such a foreign currency that only exists in the digital world is such a success? And can the success be sustained, or will bitcoin burn out, like so many hypes on the internet? Check for more information

Bitcoin sets records

The price of bitcoin is going uphill. In May and June 2017, the price of the digital currency more than doubled and is around 2500 euros at the end of the month. One of the reasons for this increase would be the confidence expressed by various governments, such as Japan and Russia. Whether the price is not a classic economic bubble will become clear in the near future.

In 2008, an article appeared on an obscure forum of a man named Satoshi Nakamoto. In the article, he described the design of a new digital currency, which he called “bitcoin.” Independent of all banks and governments, and secured with advanced cryptography to ensure it is a “secure” payment method, the first cyber currency was born from an obscure scientific paper of dubious origin. Satoshi Nakamoto was nowhere to be found and although he claimed to be Japanese, his email address came from a German server; a pseudonym?

You can pay in bitcoins in more and more places. Even cafes are now taking advantage of the popularity and advertising with the possibility of spending the digital currency on a cup of coffee or a beer.

Anonymous invention

However, it seems unlikely that the entire bitcoin protocol was conceived and set up by one person. It is more plausible that an anonymous group has invented and created everything.

It is no surprise that they want to remain anonymous, according to professor of computer science Jan Bergstra from the University of Amsterdam. “You can see them as a kind of whistleblower; they have developed a system that is anti-government and can topple all banks and Western finances. It is logical that governments are not happy with this, which makes anonymity an important weapon. ”

The creators may be unknown, but the coin itself seems to be becoming increasingly famous. Recently, online shops, universities and governments have pledged to accept bitcoins as a payment method. Silk Road, an illegal drug-trading website, also used bitcoins to stay out of official payments.

The more bitcoins are accepted, the higher their value becomes. It became big news that after a restless night, the price of bitcoin rose to the unprecedented high of $ 900. Two weeks later, bitcoin has long passed the $ 1000 mark.

But how does that system actually work? Is it strange that more and more people are hoping for something that only exists on the web? Where there is no gold supply, no government that guarantees and no bank that keeps everything on the right track. What does bitcoin actually decompose to?

Who invented the Bitcoin?

For the time being, the inventor or inventor of Bitcoin is anonymous. Of course, that doesn’t mean people don’t try to figure out the identity. One of the more interesting ideas is that Satoshi Nakamoto is actually Nick Szabo. Szabo has had a blog about cryptography for a long time and worked on a currency very similar to Bitcoin. On the blog Like in a Mirror, someone explains why he thinks it is Szabo. He has checked the article describing Bitcoin for characteristic phrases and discovered that many sentences are fairly rare in cryptography wallpapers. Phrases such as “of course”, “it should be noted” and “a level of …” only occur in 1 to 2 percent of the articles. The chance that it happens by chance that all these phrases occur regularly in the Bitcoin paper is very small. On the other hand, Szabo’s blog shows that he uses these terms very regularly. So everything points to him in that sense.