Blockchain – PIVX Basics – Ep1

PIVX PRESENTS PIVX CLASS SIMPLE AND THOROUGH CRYPTOCURRENCY EDUCATION Hey, there and welcome to PIVX Class Today we have the first episode in a series that will explain all the basic concepts that you need to really understand what PIVX is using only simple examples

Much of the information within this series is also applicable to other digital currencies, so it should serve as a good starting point in learning about this industry in general Today's episode is about how digital money is worth anything, and how it can be safely used So how exactly do you have a digital currency, who says it is worth anything, and how can something digital, something that isn't physically real, be worth anything? Well, the first thing to understand is that we already live in a world of digital currency Most of the money we have and use exists only as digital money These methods are how we access our money now

If everyone tried to withdraw their savings at the same time, there wouldn't be enough physical dollars in the banks to actually fill all of those requests Let's start with what makes money valuable To oversimplify things a little there are two main things that determine the value of a currency These things are rarity and practicality Did you know that salt was once an incredibly valuable resource? It's true

I'll leave a link to the Wikipedia page for a short version of the history, but for much of history salt was a difficult resource to gather, but was very useful This made it incredibly valuable Hoarding salt would have been a lot like hoarding gold Then, over time, people found new sources of salt, And those stockpiles of salt became well, about as worthless as they are today This same thing can happen to fiat currencies like the dollar

Every year, more and more are printed Let's say there was only $100 between everyone in town You wanted to buy a car and it costs $1 because the dollars are so rare You work for an entire year and save up one whole dollar Then you go to buy the car for your hard earned dollar you find out something awful

The seller says the car now costs $2, and you ask why Turns out inflation was really high this year The government printed out a lot of money to pay for things and it drove up inflation There was an extra $100 put into the town Now the total is $200

Since the dollar is half as rare, the car is twice as expensive I should stress that this is a gross oversimplification of inflation, the rate at which money inflates is not that simple In the case of the US dollar, inflation was less impactful compared to the amount printed This illustration just shows the correlation between rarity and value Different digital currencies have different rates of inflation, but many are incredibly low

So that's how rarity affects money But what about practicality? This one is a little simpler Some currencies have advantages that others don't For instance, paper money is a lot easier to carry around than gold Paying for large purchases with debit is easier than counting out a stack of paper money

Digital money, also known as cryptocurrency, like PIVX, have advantages too Transactions happen faster, they are free or nearly free, work anytime, and no one but you can control your money If something isn't practical, it doesn't make for good money Imagine trying to buy a house by trading them two Bentley's, a BMW, and Pontiac Fiero Cars are valuable, they have a certain rarity to them, but they are wickedly impractical in this instance

There you go Rare plus practical equals good currency That just leaves, "How does it work?" After all, in the realm of computers, you can copy, modify, or delete anything, right? Well, that only works if no one keeps track On the PIVX network, there are thousands of people keeping records This network tracks who has what and what transactions they are making

Over a set time period, transactions are gathered by the network When the time comes, they are written on a data block Think of it as a page from a ledger Once this happens, that data is near impossible to tamper with If one or a few copies of the ledger are different from the majority, they are cast aside and made invalid

Just like in a proper ledger, you can't change the data, only update it This way, no one can mint or destroy coins just because they feel like it After another chunk of time, the next block or page of the ledger is pushed forward and added Then another, and then another, and so on You'll notice these pages, these blocks, are linked in a chain

Well, that is what we call our special ledgers We call them a blockchain It's the title of this video and something you will hear a lot when researching cryptocurrency Let's just quickly recap those terms Cryptocurrency is just a fancy new form of digital money

Essentially the people that code this stuff are just making upgrades to old school concepts They have developed currencies that are rare and practical, not a new strategy, but a new way to do it And blockchain is just a form of digital ledger Ledgers like these aren't so different from how accountants have operated for years Just a new fancy term and way of going about it

It's been a blast, guys Next week we'll be going over just who gets to make those blockchain entries, and how they keep it secure You'll want to see that because it could be you And you can get paid to do it Thanks for tuning in and I will see you next time

I'm not sure how to describe this to someone unfamiliar with PIVX, but us PIVX people, we call ourselves PIVians, have a saying we like to end videos on And sometimes we even say it to each other in person or over chat And that is Keep it Purple, People Get it? Because PIVX is purple And we like alliteration a lot Yeah See ya

Thanks for watching

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