Bitcoin and Blockchain. Kalel Carkeek, Impact Investing Intern, American University
Bitcoin and Blockchain Bitcoin is a digital currency that operates as a decentralized authority. This means it is not government operated as other currencies, like the US dollar. Bitcoin is kept in check by blockchain, a public “ledger” that keeps records of all transactions. Bitcoin mining in the simplest of terms is people searching through transactions, verifying them and being rewarded with bitcoin for it. Since the launch of bitcoin, it has inspired many cryptocurrencies like ethereum, dogecoin, NFTs, and even virtual real estate. Stability of Bitcoin An important detail about Bitcoin is that it is backed only by those who partake in it. As opposed to the US dollar, which is backed by the government, bitcoin is backed by nothing nor is the conversion to USD 1 to 1. Other cryptos known as “stable coins” have real monetary backings. Bitcoin is fully digital and until it can become liquid, which would go against what it is as a cryptocurrency, it will not become stable. El Salvador a