In the last few weeks, Bitcoin has been all over the news as it skyrocketed and then plunged into the center stage. It brought up a lot of interesting questions about the structure of financial systems, the role of manipulating economic waves, and how technology will change in response to new digital currency systems.
If you’re new to the world of virtual currency and need a quick intro, a few facts you should know about Bitcoin are that it’s the most widely used alternative currency, it’s not related to any central bank or financial institution and it has been valued at over $1 billion. The video below is a great primer on the roots and rules of how Bitcoin works.
What caught our attention as we watched Bitcoin rise from around $14 to $266 and then back down to $70, was the need for technology to catch up to this new realm of currency. In this latest Bitcoin boom and bust, one of the major exchanges temporarily closed down and offered this explanation for the downtime and lags via a post on Reddit:
“Upgrading computer systems means ordering more servers (2 weeks timeframe), setting up (1 day), load testing (2 weeks) and deployment (1 day). It’s a process that can take up to one month in total.”
That quote is a good snapshot into the lack of options and tech evolutions in this emerging market. Although Bitcoin has been in the spotlight the last few weeks, they are not the only online currency. Digital currencies like Ripple to the more brand-specific currencies such as Amazon Coins, are all beginning to gain popularity. This leaves an open market for developers to begin plotting and building systems to grow with these new types of currencies and the transactions they support. Our team believes this is an exciting time filled with opportunity as we head to the whiteboard and begin imagining what this new global economy will look like.
This video explains how Bitcoin works in 3 minutes.
Directed, Designed and Animated by Duncan Elms – www.duncanelms.com www.anotherplace.tv
Written and Voiced by Marc Fennell – www.marcfennell.com
Sound Design by Sebastian Oliwa – www.oliwa.tv
Updated in September 2014. Original video here – http://www.youtube.com/watch?v=SEbCbp1vc9Y
This is a self funded personal project, If you would like to make a Bitcoin donation for the video, please do so to 1P9wrpA2UQ2GEmMpt81Ch3Wt4poq5LhpiW. Or you can use the Vimeo tip jar.
Bitcoin is constantly changing, therefore some of the stats may not be up to date. For more info please see en.wikipedia.org/wiki/Bitcoin.
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Software used: After Effects and Cinema 4D