The Dangers of Digital Currency

Being a professional guitarist, I’m engrossed in an ongoing controversy about technology. We guitar players debate thousands of little issues in online community forums, on Facebook and in person. What strings provide the best value for money? Are U. H. -made guitars still superior to those manufactured in South america? Which “stomp-box” could make myself sound just like Jimi Hendrix? You name the situation, there’ll be multiple thoughts, all held passionately.

Yet there’s one overarching break down between the “purists” and the remaining. I maintain that it’s much better have several guitars and amplifiers to get different sounds – one rig for doldrums, another for jazz, one more for country, and so on. The modernists say you can just use any old any guitar and amp along with a fancy piece of digital “modelling” equipment that will make them appear like anything you want. 

More than once We’ve done shows with such “modern” players, only to watch in amusement as their fancy digital tool set broke down, leaving them stranded. My old-fashioned Fender Telecaster and Deluxe Reverb amp then steal the show.

There’s a deep lesson in there… the one that you must take to heart for your money.

What If the Electricity Is herd?

The modern world is a kaleidoscope of electronic gizmos and systems that make possible things we only dreamed about as kids. Thanks to our electronic world, you can buy a house from your cellphone, see what the night heavens looks like in real time on the other hand of the world, or profit from nanosecond dissimilarities in trading times in the stock market. All before you get out of understructure.

Just like my “modern” guitar friends, many people seem to be to take it for granted that the digital systems that underlie these miracles – the Internet, for example – are eternal. So when I hear someone make plans that assume continuous connectivity, I think to myself: “What if the energy goes off? ”

Which in turn brings me to one of the most scary ideas I’ve come across in a while.

A U. S. tech icon is reportedly working on a software platform based upon the infamous digital forex “Bitcoin. ” The idea is to make it possible for major stock markets like the dollar or euro to operate like Bitcoins. Anyone could work with anyone else in the world directly, skipping banks completely. Just login, send your money and you’re done.

This guarantees a global with no banking companies, no fees and no hassles… but lots of danger.

Digital Faking

Everybody knows that counterfeiting is a risk with newspaper money. That’s why specific bills have serial figures on them. However the same applies to digital stock markets. Unlike physical money, the electronic files that stand for digital currency can be duplicated exactly, with no trace. Since spending a digital dollar doesn’t erase the electronic data that represents it, and in the absence of banking institutions and their accounting systems, another way is needed to prevent that money from being used again by the same person – so-called “double-spending. inch

Bitcoin accomplishes this using a “block chain. inch Every few hours, a group of all recent Bitcoin transactions is created, called a block. This kind of block is then quickly distributed across the Bitcoin system, where it is included with the ongoing cycle of all Bitcoin ventures (hence the name). That way, if someone who has already spent a given Bitcoin (and has not received it back again legitimately from a third party) attempts to spend it again, the machine will reject it as “counterfeit. ”

Bitcoin accomplishes this by by using a distributed system of anonymous “nodes” that keep track of the block chain. But the same thing could be accomplished by a central server. The tech company working away at its own digital currency has therefore sailed the idea of turning dollars and other stock markets into digital form – with the central storage space manipulated by central banking companies.

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