Most people only focus on Bitcoin, the digital currency.
But that is not the important point. The important point of Bitcoin is the blockchain, or the digital public ledger. By making accounts anonymous and public, Bitcoin replaces the role traditionally played by commercial banks in recording transactions. This is because each bank would keep its own private ledger of all transactions; Bitcoin stands this on its head by creating one public ledger which is anonymous, and makes it freely available for download.
Then, by limiting the amount of Bitcoin in circulation, and making that number public, Bitcoin plays a role traditionally played by central banks.
Basically, Bitcoin is not just a digital currency, but aims to replace the role banks play in the economy. It is no accident that it was announced right after the subprime mortgage crisis in 2008.
When you consider the amount of public anger at banks, it is easy to see that most people have not yet connected their anger at banks, to using Bitcoin as a possible alternative to the banks.
When that connection becomes public knowledge, then Bitcoin will become more popular.
And the banks and traditional economics will be in trouble.
Conclusion
I have come to the conclusion that the biggest problem for Bitcoin is that the people who use it go into too much detail about the technology, and don't know how to explain the principle behind Bitcoin.
When you drive a car, do you have to know how an internal combustion engine works? When you use a computer, do you need to know how computer memory works?
NO!
But the people who "explain" Bitcoin insist that you need to understand all those things. How did they become their own worst enemies?
https://www.quora.com/Why-is-Bitcoin-difficult-to-understand/answer/Paul-Denlinger?timeline=1
It does not have to be difficult but it is still very hard to get people to understand that bitcoin has value given to it by the people. They just don't trust how bitcoin os real money if you can't easily use it for every day things.
One day they will accept it.
Thanks for this article. It is difficult for us "old timers" to understand Bitcoin not to mention Steemdollars and all the rest of the intricacies of crypto currency. Thanks for making it clearer.
One of the best ways to understand it is via interactions with communities of cryptos like steemit.com, bitcointalkforum etc.
I am glad you grasp something from the new timers words.
#winks
The concept of Bitcoin is actually the same as the concept of money. What gives FIAT money value? You can not eat FIAT money. The FIAT in your bank account -y ou can not touch it It is not even there - mostly it is just numbers - banks are giving out 10 times more money than they acutally have... If we would all go and try to cash out our money from the banks they would go bankrupt in no time at all!
What is Bitcoin? As with FIAT money the value is given to it by the people. You can not touch it either. BUT - supply is limited - this makes it deflationary instead of inflationary(FIAT money can be printed on demand!!!)
Hope this helps to make this issue a bit clearer.