The Insanity Of Bitcoin, Explained

There’s no better way to appreciate the trippiness of the digital currency Bitcoin than this hallucinatory animated movie.

If you’ve bot paying attention to the news, you might have heard that digital currency Bitcoin is presently the talk of Wall Street after skyrocketing te value to trade at overheen $1,000. That’s no mean feat for a virtual currency with no real-world representation that is, te effect, the collective hallucination of the world’s hackerspace.

But if Bitcoin isn’t real, how does it work? There are some amazingly thorough write-ups about Bitcoin on the web, but if you want to learn about the world’s very first all-digital currency, there are few ways more pleasant than this beautifully animated three-minute brief. It makes learning about Bitcoin spil joy spil pulling down a tabulator and hitting the planetarium for a Pink Floyd laser voorstelling.

That Bitcoin Explained is so beautiful should be no verrassing. Created by director Duncan Elms, recipient of an Honorable Mention at the 2013 Kantar Information is Beautiful Awards, the film’s vormgeving pedigree is top-notch, with a cyberpunk visual style that looks like Neuromancer come to life. That’s a wholly suitable aesthetic, spil the idea behind Bitcoin itself is something that seems like it came out of a William Gibson novel.

So what is Bitcoin? Essentially, Bitcoin is a digital currency created by a decentralized network of millions of computers. Ter this network, setting your laptop to the task of solving increasingly complicated mathematical problems creates Bitcoins. Every time a pc solves the algorithm, its owners are awarded a certain number of Bitcoins. But there’s a caress: the math problems Bitcoin asks computers to solve become more complicated harshly every Ten minutes, while the prizes for successfully solving those problems halves toughly every four years. Add to that the fact that only 21 million Bitcoins can everzwijn be created, and what you have is a digital resource that acts like a natural resource: Bitcoins are not only te finite supply, but they are increasingly difficult to mine.

Te the end, the idea of Bitcoin is one of a self-stabilizing currency that cannot be tampered with by banks and governments. If the United States doesn’t have enough money to pay its bills, it can simply print some more, but that results te economic instability that can lead to extreme deflation. A Bitcoin can never become unstable this way, at least ter theory, and because Bitcoins are theoretically anonymous, they are a favored way of paying for goods and services by those who are distrustful of traditional financial institutions, such spil libertarians and techno-anarchists.

Money is a collective hallucination of mankind that has permitted us to build a civilization upon the back of a concept that is, by its very nature, ephemeral. It’s only worth what people think it’s worth. What makes Bitcoin so interesting is that it is transparently ephemeral and openly hallucinatory. How adequate, then, that someone eventually designed a primer on the currency that is just spil trippy. If you want to learn about Bitcoin, or just appreciate how phantasmagoric money is te general principle, watching Elms’s movie is three minutes well spent. Just be warned that Bitcoin is especially volatile right now, making some of Elms’s precies figures a little out of date.

Related movie: Bitcoin JSON-RPC Tutorial 1


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