It's interesting to see the discussion evolve around the
term" bitcoins" versus "bitcoin cache". To begin, let me
explain what is really meant by the term. Many of you may know that bitcoins
are a form of currency. There is a central bank that issues these bitcoins and
they can be traded like regular currencies in most countries.
But what you may not know is that this is not the only
way to buy or sell coins. In fact, bitcoins can be used as a commodity as well!
This is because there is an over the counter market for bitcoins called the buy
and sell trade (BTR) in which people trade or buy and sell bitcoins as a stock
in a commodity exchange. Let's use brewdog as an example again. People who
trade in the BTR buy a set number of bitcoins at a price that is determined by
supply and demand in the market and then they trade them either for profit or
trade against each other for profit.
If you want to trade in Bitcoin Cash Reference for a profit then you
will need to download the bitcoin reference client software. This software will
allow you to make trades over the internet between your local currency, such as
the United States dollar, and your international currency, such as the Euro.
One of the nice things about the Brewdog example is that you can actually trade
the drink in one country and consume it there, and use the proceeds to purchase
a different drink somewhere else. This is called investing in the dementia
society.
Investing in the dementia society is really quite fun and
it is one of the reasons why the decentralized autonomous organization (DAO)
technology has become popular quickly over the past few years. The reason for
this is that it provides a practical solution to a very old problem - the
average transaction times that characterize electronic cash. Most of the
current record time for transactions per day is less than one second. In fact,
the average electronic cash system is less than ten seconds. A hundred years
ago, you would have been stuck waiting at a computer terminal for hours upon
hours just to make an electronic transaction.
The software developers have figured out a way to make
these sorts of transactions per minute possible by using what is called a
"SegWit" hard fork upgrade. What they did was add a new capability to
the existing software, which was technically called a" SegWit activated
soft fork", or a" SegWit upgrade". The upgrade effectively
removes the requirement for the typical merchant to hold a long-term balance of
digital cash on their computer.
Instead, it only requires them to be able to operate a
short-term trading strategy that they set up before they started using the new
system. The problem with most electronic cash systems is that there is usually
some kind of monthly fee that is added to the transaction fees, which makes it
very expensive for small transactions and really expensive for people who are
conducting lots of small transactions per month. With this new system, the
costs of running your own software will be greatly reduced, therefore making it
more affordable for everyone to use and it will also allow merchants to run
their business in a more efficient way, which should benefit the economy as a
whole.
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