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ISSUE6-NERDS

PublicHouse THE GLOBAL

PublicHouse THE GLOBAL CURR=NCY Glint lets you pay electronically with gold: the most reliable form of money – protecting you from systemic risk and inflation. GLINTPAY.COM 016 16

PublicHouse CRYPTONERD CRYPTO? By this point I assume most people have heard that people are getting rich off this weird digital money thing called bitcoin. Think it's too late to do the same? Think again! There's still plenty of money to be made in cryptocurrency and I'm going to tell you what all the fuss is about. Bitcoin was the first of over a thousand cryptocurrencies that currently exist today. A cryptocurrency is a digital currency (think of online banking) that uses cryptography (basically maths equations) to function, without a central bank managing transactions and keeping track of who owns how much. It cuts out the middleman (the banks) by using a type of database called a blockchain that prevents information being easily removed once it has been added. A BIT OF HISTORY In 2008, a person by the pseudonym of Satoshi Nakamoto published a whitepaper called Bitcoin: A Peer-to-Peer Electronic Cash System. The open source software was released online the next year. Satoshi has since disappeared and stepped back from all involvement with the currency. His identity is still unknown and it's estimated that he ‘mined’ the first million coins. If he still even has a tenth of that today he’s a billionaire, so it makes sense if he’s trying to keep his head down. At the beginning bitcoin was very cheap, with people negotiating the value how they saw fit. Before it gained parity with the US dollar, someone swapped 10,000 BTC for two Papa John’s pizzas. If only they had known the future value, at the time of writing it would have been worth around £120 million (not to mention that Papa John’s is trash pizza). HOW IT WORKS (BRIEFLY) When you do a normal transfer of money the bank has to confirm that transaction by deducting the money from your account and crediting the account of the recipient; the blockchain removes the need for this and thus makes it decentralised. If your bank can't process transactions then you can't get paid, but a decentralised currency doesn't have this problem. The bitcoin network basically manages itself meaning it can't go down. The transactions are solved by people on the network solving hashing functions (called mining) on computers, who get paid in small amounts of the cryptocurrency for their efforts, this securely validates transactions for everyone on the network. 17

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