In our previous articles, we talked about several aspects of Bitcoin already. First of all, we looked at the ideology of Satoshi Nakamoto when Bitcoin was created a few years ago. After that, we briefly talked about the technology of the blockchain that powers the Bitcoin network. In this article, we will talk more about the monetary aspect of Bitcoin.
If you have ever been fortunate enough to have a Bitcoin conversation with another person in a face-to-face (or peer-to-peer) environment, you may have noticed how people subtly distinguish Bitcoin and bitcoin, even when speaking out loud. Why this happens is rather easy to explain, as Bitcoin and bitcoin are two completely different sides of the same coin. Oddly enough, we label the combination of both sides as “Bitcoin” with a capital B as well.
Bitcoin : The Capital B
We have been getting panicky emails in our mailbox by concerned readers about the latest developments of the Bitcoin price. Articles, even from reputable newspapers, are headliend by titles such as “Bitcoin is a Ponzi”. In nearly every article out there about “Bitcoin is a Ponzi scheme”, the term Ponzi isn’t explained.
When most of us hear about Ponzi schemes we think of some slick, smartly dressed mobster – including a hat – who dazzles unsuspecting victims with a smart sales pitch. He or she gets their victims to invest in so called “risk free” investments with huge returns.