The digital currency bitcoin, which has seen its value surge to more than $1,300 per coin, has been in a long-term tailspin.
While bitcoin is not a currency like gold, it is also not a real currency.
That’s because it’s not backed by a government, like a dollar or euro.
“The blockchain technology is decentralized and doesn’t need to be backed by the government,” said Dan Koehler, a Bitcoin expert at Columbia University.
“So the idea that Bitcoin can be used as a store of value or a medium of exchange for any purpose is just not true.”
The technology behind bitcoin, known as blockchain, has revolutionized the way we use and transact with digital goods.
While the blockchain is a decentralized system that exists on multiple computers all working in unison, it doesn’t rely on centralized infrastructure like the Federal Reserve or a central bank.
It is also decentralized, meaning it doesn.
It doesn’t use any kind of central authority like the United States Treasury, the U.S. Treasury Department, or the Bank of England.
And while the digital currency is technically a peer-to-peer system, its blockchain is more akin to a peer to peer file sharing system.
“Bitcoin is essentially a peer file-sharing system that is decentralized, so it doesn, technically, work like a commodity like gold,” said Brian Armstrong, co-founder of the blockchain consultancy Chainalysis.
“It’s just not a fiat currency.
Bitcoin has a certain value because it doesn�t have a bank account.
It’s not a form of money.”
CoinDesk spoke to experts in the digital economy about the potential for bitcoin to become a currency.
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