In the previous post we have explained the ideas behind the Bitcoin system, however, one issue remained unexplained: What is this bloody hard puzzle that the Bitcoin miners constantly try to solve? Recall that in the Bitcoin system the miners are in constant competition: Whoever solves the puzzle first will earn the honor of adding...

Before you read this article bear in mind that it is written from a computer science rather than economy point of view, therefore, many of the “economic” details might be oversimplified. Bitcoin is a type of a currency, used globally, and can be converted to US dollar, like any other currency we know (check Bitcoin...