The first thing I would have to address is these people that are uneducated are referring to Bitcoin and Cryptocurrency as a scam. Would they refer to Gold as a scam? They are. If they are referring Bitcoin is a scam then they truly are.
Let us look at some reality shall we. What is mined? BOTH. Bitcoin and Gold are both mined.
Which is scarce? BOTH Bitcoin and Gold have a set number that can not be altered. There will only ever be 21 million bitcoins that are mined.
Both Bitcoin and Gold share the laws of supply and demand. For some real knowledge let us do some deep dive proving all those individuals calling Bitcoin a scam, are in fact, showing the entire world they truly do not understand the mathematical technology.
The Blockchain
The Block Chain is a public ledger that stores every single transaction of Bitcoin or any other cryptocurrency. Litecoin would have it’s own Blockchain and Block explorer. What is beautiful about this is your funds can not be stolen from you.
Back in history thieves could steal your money because it was a physical object that can be taken from you. Crooked bankers stole peoples land because deeds were altered or nonexistent. Any person wanting a physical object to hold have not grown up since a child wanting a rattle. Anything that can be physically held can be taken from you.
Now let us understand the BLOCKCHAIN. As far as Bitcoin and cryptocurrency is concerned, the coins are never really stored on your personal device. This would be in danger of being copied. What is going on, would be the same as a safety deposit box. If Steve wants to pay Brian $100.00 in Bitcoin what Steve is doing is passing Brian the private keys to a virtual safety deposit box valued at $100.00.
If Brian had his phone broken the fix is easy. This is the reason you write down your private keys in a journal offline. Brian would then download the wallet application, and restore his wallet by the secret phrase, type a password and all Brian’s coins are back on his wallet.
The Purpose of Mining
The true purpose of mining is verifying all transactions that are to be printed on the block chain ledger. If an attempt was to write a code to take bitcoin the miners would reject this transaction because the entire system is set up on a mathematical protocol you must follow.
This was a short brief summery, but this was the easiest way I could not only explain it to you, but to show you that all people calling a scam are now proven they do not know what they are talking about. Also with the ability of a public ledger that can not be altered this same block chain could store digital records of house deeds that could not be altered, or even votes. The possibilities are endless, and it would make taking ones money and property very difficult.
