Bitcoin reaches the Philippines

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You’ve probably heard about Bitcoin. It is making lot of noise in the Philippines lately. Its influence is growing, several shops even accepts it as equivalent to cash already. Since its new in the country, you might have asked yourself these questions: What is Bitcon? How does it work? How can I earn with it? How can I use it to buy something?

Well to start things off, we have to define it first.

What is Bitcoin?

Bitcoin is an online payment system, a form of digital currency, created and transact electronically. It is not printed, like Peso, Dollars, Yen, Euros or any other bill. It is produced by people running computers all over the globe using an open-source software that solves mathematical problems.

Watch this video to learn more about Bitcoin.

How does it differ from cash?

First, we will define what is money first. A peso or a dollar bill is nothing more than just a piece of paper that holds no real value on its own. It is only the people giving it any value. So in this case you are taught the value of cash in economics and then you accept that it has value and proceed to work towards earning these pieces of paper because you believe they hold value.

The only reason Bitcoin has value is because a large enough group of people worldwide have agreed that Bitcoin is worth something. It may sounds crazy but as more people start accepting it the more the demand and value will rise.

The thing that makes Bitcoin to standout from our conventional money is that it is decentralized. Government does not control it, actually no institution does. This puts some people at ease, because it means that a large bank can’t control their money.

Who Created Bitcoin?

A software developer, Satoshi Nakamoto, proposed bitcoin in 2008 and introduced as open-source softwate. The idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees.

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