Bitcoins are stored in addresses on the blockchain.
Last post I covered how money is created through deposits at banks. This technique is called fractional reserve banking. As a review, banks only store some of the…
A network is a bunch of computers that are linked together. There are a few ways that this can be done.
Let’s say I get a job, and they pay me $100. I take it to a bank because my mom always told me it’s where we keep money safe.
Because not everyone wants apples. Dollars, on the other hand, can be exchanged for almost anything. They are widely accepted as a way to buy whatever you want. You can…
Humans eventually figured out that precious metals made great money. Let’s take gold as an example.
In the analogy from yesterday…
The money was backed by grain. Users of the money trusted they could return their paper or coins for grain, because the money (notes and…
Remember the guy in Post #6 who created notes that didn’t represent actual value? Well if he creates too many, the money will eventually inflate and have less…