We all have heard about Bitcoin, the most famous cryptocurrency in the market, but few really know what it is and how could it relate to Virtual Reality. Luckily for you, we’ll explain it so you can finally understand and avoid any public embarrassment anytime the subject comes up.

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Bitcoin – A Global Currency for a Global Virtual World

First of all, let me tell you something special about Bitcoin, it’s not really as special as you think it is. In order to have a good idea of what a Bitcoin is, you must think of it as just another currency, such as dollars, euros, or British pounds. One of the slight differences between cryptocurrency and other currencies is that common currencies have ‘printed versions’, yeah, you probably have seen those, we call it money, paper, cash, etc.

But does it mean that digital money isn’t real? Not at all, it’s still real, what about the money we deposit in our bank accounts? That’s all real money too, we just don’t need all of it ‘printed’ because we can make transfers, do online payments, and use debit/credit cards.

So, what makes money so valuable then? When you think of it, it’s just a bunch of paper or digital data with no inherent value attached to it. Now, pay attention, the real value of money is in its use, without money, all sorts of transactions and exchanges would become unbelievably complicated, so we need money and we need it in the most convenient presentation.

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Gold as the Precursor of Bitcoin and Cryptocurrencies

One of the oldest and better presentations for money was gold and other precious metals. Gold was amazing not particularly for being useful or pretty, it was much appreciated because it was very scarce and malleable. So one powerful person eventually made tiny pieces of gold and told everyone “hey, you will now use this as money because it’s better than measuring the value of things with rocks or living animals”. So people in the past started using bigger or smaller pieces of gold to buy expensive or cheap stuff as needed.

The greatest characteristic of gold was that no one was able to create it out of thin air (imagine what would happen if anyone right now could print millions of dollars so easily). Gold was mostly beneath the earth, in a LIMITED amount, and you had to mine it in order to obtain it, so that required a lot effort.

So cryptocurrencies, like Bitcoin, are very much like gold in that sense, you can think of it as a digital form of precious metal. Someone created a LIMITED bunch of encrypted data and called it ‘Bitcoin’ and then said, “let’s use this as a currency” and that was the birth of Bitcoin.

The blocks of Bitcoin that have already been decrypted are just like all the pieces of gold that have already been mined, the blocks of Bitcoin that are still encrypted are just like the pieces of gold that still lies beneath the earth.

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So why is Bitcoin worth so Much?

Both Bitcoin and gold are limited and can be used as money, but even though you can’t physically touch Bitcoin, it’s there. It is data turned into money just because people are using it as money. If millions of people suddenly use butterflies as money, then we would all be chasing butterflies because they are money now.

But let’s be objective now, Bitcoin is not just a whim, it has a lot of advantages and that is why people like it. For instance, it’s much lighter than gold and anything else, and you can transfer it to any part of the world in a matter of seconds.

Can we just do that with modern currencies? Indeed we can, but common currencies have a lot of flaws, they are not limited, free to use, or private. In fact, governments and central banks are printing a lot of money without any control or restriction, causing inflation and volatility. Besides, banks can watch your entire activity, make it public if the government so desires, use your money to lend it to others and even charge you fees for some of its services.

Bitcoin has the best of both worlds, it has the advantages of modern digital money and the privacy and confidence of a limited metal like gold.

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Virtual Reality is the Future and Bitcoin is its Currency

Even though both technologies may seem completely unrelated, no one can deny that they are both part of the future, and even if it was unintended, both VR and Bitcoin will eventually coexist and mutually benefit from each other.

The world is heading to a more technological and virtual future: communications, entertainment, work, professions and many aspects of like have been quickly migrating to the World Wide Web in a digital format. At a similar speed, things are now entering the age of Virtual Reality.

Possibilities are endless but we are already seeing a great deal of VR’s true potential with all of its many interesting applications coming out every day, and we are loving it. The future also represents a challenge, a virtual world, unlike the physical one, doesn’t have any borders, restrictions or limits. All users will be virtually free and interconnected into one single huge and diverse space.

What rules will apply? What language should we use? How shall we trade and exchange in this new world? Many questions will remain unanswered, but something is clear: the best ideas will emerge faster and become a standard. Bitcoin is the currency with the most potential to serve as the money of this new world. Especially because we want this Virtual World to be free and unattached to conventional norms and institutions.

Making the dollar or any other currency the de-facto official currency of future VR worlds would be a tremendous mistake because something as free as the internet and VR cannot have a currency that depends on unelected government institutions from a single country.

Virtual Reality is the future, one that promises a world of freedom and independence, if we want to make this dream true, we need tools that will help us achieve it and Bitcoin is one of them.

http://virtualrealitytimes.com/wp-content/uploads/2017/05/160504-bitcoin-b-600x338.jpghttp://virtualrealitytimes.com/wp-content/uploads/2017/05/160504-bitcoin-b-150x90.jpgPierre PitaCryptocurrencyTechnologyTechnology DiscussionbitcoinWe all have heard about Bitcoin, the most famous cryptocurrency in the market, but few really know what it is and how could it relate to Virtual Reality. Luckily for you, we’ll explain it so you can finally understand and avoid any public embarrassment anytime the subject comes up. Bitcoin...VR, Oculus Rift, and HTC Vive News