A scarce commodity is something that has a limited supply; it isn\u2019t easy to create, copy, or otherwise access.<\/p>\n\n\n\n
Physical stuff can be scarce (like we\u2019ve seen with gold), but digital things are an entirely different matter. A byte is very easy and cheap to copy, as the music and film industries have painfully discovered in the early days of the internet. <\/p>\n\n\n\n
That\u2019s why digital money, such as cryptocurrency, isn\u2019t a file you keep on your hard drive; that would be impractical as anyone with a computer would then be able to just infinitely copy it around.<\/p>\n\n\n\n
Instead, all forms of digital currency – both fiat and crypto – rely on an accounting system based on digital ledgers. A ledger being an organised record of debits and credits against account holders, providing a running balance.<\/p>\n\n\n\n
You may be surprised to hear that\u00a097% of all fiat money only exists digitally. So all the money in your bank account, for example, are just entries on your bank\u2019s accounting system. Even the 3% physical banknotes and coins are accounted for as entries on a central bank\u2019s digital books.\u00a0<\/p>\n\n\n\n
Bitcoin is also based on a digital ledger. The crucial difference between Bitcoin and Fiat is the way rules are created to govern if\/when\/how much new money is added to the system and how the ledger is maintained.<\/p>\n\n\n\n
And it just so happens that these differences change everything. <\/p>\n","protected":false},"excerpt":{"rendered":"
A scarce commodity is something that has a limited supply; it isn\u2019t easy to create, copy, or otherwise access. Physical stuff can be scarce (like we\u2019ve seen with gold), but digital things are an entirely different matter. A byte is very easy and cheap to copy, as the music and film industries have painfully discovered […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[334],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/7954"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=7954"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/7954\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=7954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=7954"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=7954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}