Bitcoin's strength is the lack of a single point of failure. When hackers attacked Target, they had it easy — all they had to do was find an open door into the single database that contained all the customers' personal information. Bitcoin does not require personal information and the database is distributed across an infinite amount of computers. While hackers have been able to find a way into some computers, none of the attacks hobbled the entire organization. Even the failure of Mt. Gox, formerly the largest bitcoin exchange, hardly caused a hiccup. Imagine if a major stock exchange closed without warning — our financial system would be in shambles!



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Bitcoin is fast because it reinvents the middleman. Think about what it takes to transfer money from one person to another: First, we both have to open a bank account which is accompanied by a mountain of paperwork to verify identities. Then, I need to instruct my bank to withdraw money from my account by writing a check, sending a wire or using an electronic debit. Once it arrives, the payment needs to be verified, cleared and delivered. Numerous points of friction exist, racking up fees along the way.

Bitcoin is efficient because the middleman is compensated by the technology. The bitcoin software pays the middleman (aka miners) a predetermined amount of money. Paying the miners bitcoins is also the channel by which the money supply steadily develops. The miners compete to be the first to solve a mathematical equation which processes the transaction and ensures the bitcoins are not counterfeit. The first to solve the problem receives freshly minted bitcoins. It is this innovation that makes it impractical to strip the currency from the technology. The currency is an integral part, similar to how without the "@"sign, email would not work.