Basic CONCEPTS - Financials 

Hi Guys Thanks for Reading the Previous Episode I'm Very Much Excited & This Episode Will Be About Some Basic Concepts Before Moving Forward, so buckle up & Have A cup of Coffee This Will Be a little bit Long Episode 🧐

- Now Before Diving into the deep history of bitcoin & exploring the technology behind it we have to understand some concepts that bitcoin solved & implemented in order for it to work & last this long, because guess what, bitcoin wasn't the first crypto currency project at all 😱???

- That's Right Bitcoin wasn't the first Digital Currency Project, there was a previous attempts to create this type of Electronic Cash System based on a digital currency some of those projects were: Digicash, B-Money, Flooz, Bit Gold, RPOW, E-gold, Liberty Reserve & The Final one that was close & still used rarely these days is HashCash

- Now Without Going into the details that got each one of those projects to fail eventually - My They R.I.P 🙏 - because they actually paved the way for Bitcoin Emergence & Development, those projects were an experiences & benefits for the Technological Financial World to know exactly what is missing & how to solve it, & what they figured it out that all of these projects failed because one or more of the following Concepts : 

Censorship resistance, Transfer of ownership, Limited Supply, & Finally the Most Important One Double-Spending Problem Which Was the Real Disturbing Problem 

- Censorship resistance: now this concept may mean something like freedom of speech or Press Freedom, but as we talked in the previous article that Bitcoin is not controlled or owned by anyone & there isn't  any third party to make any changes in the laws of how it operates or on the individuals that are dealing with it, & in academic way it means: ensuring that the laws that govern the network are set in advance  and can’t be retroactively altered to fit a specific agenda.

- Transfer of ownership: & again it may mean in the physical world by legislation that it's a contract used to transfer ownership of something sold by one person (the Seller) to the person buying the products (the Buyer) & what it means in the digital world is the "Evidence" of conducting the transaction between the peers ensuring that the seller received the money & the buyer has send it , & This Concepts implies within it other Concepts like "digital signatures", timestamps", &"proof of work" & those concepts will be explained in other article

- Limited Supply: oh, I love this concept very much ❤️ - tell me why🤔 - because it ensures that no one can add more than the actual amount meaning the paper money that we deal with it, governments are printing it whenever they want & they print how much when they desire in order to fit specific agenda - Look for 2008 USA market crash - & this causes many problems to the financial world such as inflation, but with limited supply it means that you can't print & you can't add more papers already than there is but in the case of physical world that's impossible to do - because there will be always more humans & more stuff to buy & sell & the markets will go bigger & you will need more money papers with big amount or small to satisfy the requirements of the public needs -   , but when it comes to the digital world it's more fascinating because only 21 millions of bitcoin will be there to exist no more no less, but you may ask how this will solve the previous problem about the public needs, it's actually simple, the price of the bitcoin will increase & most people will deal with fractions of it as it's the case now but there will be more fractions to deal with as bitcoin prices - or any other crypto currencies -  grows even more in the future

" This Section is edited " sorry & please re-read for better understanding

- Double-Spending Problem: Now This has been a great problem - even to me to understand & simplify it so don't be cheap on your tip 😂 - to solve to the people who tried to create the digital currency, in a very simple term it's that no one can forge a bitcoin - not like any type of currencies I can mention 😂 - meaning no one can send a fake money (( the extra part  is that in a very strict way you  or any other one can't send the bitcoin twice , meaning you can't create a duplicate coin of the amount because it's like writing 2 cheques with the same very details & giving it more than once )) , & this concept merges deeply with transfer of ownership  & also implies the technical branch concepts - Digital Signatures, Timestamps, Proof of work - in order to make a system & A Hard Digital Coin that can't be forged by anyone

few 😮‍💨 

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