It is story time. Once again our protagonist Sharry is back in action, on a popular demand. And this time around, his father has a very fair chance of redeeming himself. If you are absolutely lost on what’s going on, I would urge you to go ahead and read my previous post here. While Sharry learnt a difficult concept like blockchain with ease, our readers found his father’s behavior rather, questionable.
Coming back to the topic, Sharry was very happy with his new dog. As promised to Santa, he handles his new friend with utmost care. However, lately, he has started feeling the crunch. As his dog is getting bigger by the day, it needs more food and more playtime. While playtime is not a concern for Sharry, but his pocket money is now falling short to take care of his needs. So has this weird idea.
Sharry and his “Digital Currency”
One fine day, Sharry decides to go to his dad. He asks for a Rs. 2000 note with a promise to return it within an hour. He claims that it is for a school project. Later, he clicks the photo of this note with his dad’s phone and sends an email to himself.
Now, Sharry has a “Digital Cash”, stored as a file in his laptop. He immediately decides to go to Amazon and order his dog’s favorite chew toy. On the payment page, he is looking for an upload button to pay with his “Digital Currency”, but he doesn’t seem to find one!
His father, at the same time checks out his mailbox to find this mail with a weird attachment. Therefore, he plans to intervene and checkout what’s going on. As soon as he finds Sharry thinking of how to spend his “Digital Currency”, he takes this opportunity to teach Mr. Dog parent about Bitcoin.
Bitcoin and Sharry:
What Sharry did is actually the genesis of Bitcoin. Bitcoin is nothing but a digital currency which is stored as a file on your laptop in something called “Digital Wallet”. You can exchange this file, or a part of this file in return for goods and services. Pretty neat right? Innit? Well, if you still haven’t realized it yet, here’s a food for thought.
Files can be copied right? So if Bitcoin is a digital file, you can copy and paste it multiple times and hence make millions out of it. Alternatively, if anyone could do it, Bitcoin would have no value.
Let’s approach it like this: One of Sharry’s friend, Garry had a very beautiful toy car to play with. Everyone in his class wanted it. It was a status symbol. Everyone wanted to hang out with Garry. Now imagine, if every kid in the class had that car, would it be a big deal? No right?
On a similar note, greater the supply of a product, lower is the value.
With that being said, Bitcoin is trading at Rs. 25L for one as I am writing this article. How is that possible? Why have people forgotten the good old Ctrl C + Ctrl V?
The Bitcoin Magic:
Remember how Sharry’s father was removed from the North Pole Blockchain because he tried to tamper with Sharry’s letter? It was possible because everyone had the copy of everyone else’s letter. Similarly, in a Bitcoin blockchain, everyone has the records of all the past transactions. So you cannot just produce money out of nowhere and expect that nobody will catch you. You would be out of the blockchain even before you know.
The fun doesn’t end here. All this record keeping is not done by any human or company. It is done by the people like me and you. Hence the origin of the word: Decentralization, something that has no central authority controlling it.
After Sharry has learnt his lesson, his dad teaches decides to raise his allowance so that the newest member of the family can be accommodated properly. Also, now Sharry knows that the way he was trying to make money with, was not only incorrect, but unethical too.
So? What is your take? Do you forgive Sharry’s father?
Until Next Time. . .
If you are interested in a quick read, I recreate these blogposts as carousels on Instagram as well. Below is an example of the same. You can follow me here.