Posts tagged with: Proof-of-work system

Every day we hear about contemporary, serious concepts (e.g., chained CPI) and new, silly fads (Vadering), but in the modern age it’s not always easy to tell which category a new idea falls into. Take, for instance, Bitcoin. As Jordan Ballor wrote yesterday,

bitcoinIt is certainly a phenomenon worth greater attention, and something of significant cultural, social and economic import. But I’m not buying Bitcoin, at least not yet.

My initial skepticism is in part due to my lack of familiarity with the details of the currency and its formation. I certainly need to learn more.

Many of us are in the same situation as Jordan. We recognize that Bitcoin is a significant phenomenon but need to become more familiar in order to develop an informed opinion and be able to “think Christianly” about it’s value and implications. While Bitcoin is not a topic every Christian should know something about (at least not yet), it does overlap with many subject areas of particular interest for Acton PowerBlog readers: business, technology, regulation, ethics, etc. For that reason, I thought it might be helpful to write a series on Bitcoin for Christians.

Over a series of three posts I’ll provide some background information on Bitcoin, explain how it works, and consider some of the reasons why Christians need to develop an informed opinion about the cryptocurrency. The purpose of these posts is not to tell you what to think about Bitcoin (though I have begun to form my own opinion) but merely to provide information that will help you to develop an informed opinion of your own.

We should start with the question “What is Bitcoin?” but before we can answer that we need to consider a more fundamental question, “What is money?” And that question brings us to the story of the rai of Yap.

What Yap Can Teach Us About Bitcoin