Anthony Pompliano states, that this entire idea of Bitcoin is built on something that people refer to as trustless. And, what that means is that you don’t want to trust the system, you don’t have to trust a centralized third party, you don’t even have to trust he person you are transacting with. Everything that you need to do is you can verify. You can go and find the truth.

Bitcoin (BTC) Trustless

And, what I mean is that when I send money to the bank, I am trusting that the bank has got to take my money, the bank should give it to the right person and the bank or the recipient bank is going to accept the money.  So, I am trusting multiple parties in that transaction.

Here, with Bitcoin Network, I don’t want to trust anybody to send BTC, I don’t have to trust any body’s bank to receive it and I can actually go and verify that the money was sent, why the Bitcoin was sent and I can verify who received it, how they received it and how much and I can even see what they do with it.

Bitcoin (BTC) Decentralized and Mining with Computing Power

And, so when you kind of go through this system, it is a kind of public transport system that is not owned but it is fully decentralized.

And, so a lot of people will say okay, well how does that run and how does the transactions get processed, if you are processing transactions, you need some sort of computing power to do that.  It is in the Bitcoin system there is something called Bitcoin mining. And you can think of the miners, all they are doing is that they are processing transactions.  They are there are run the Bitcoin transactions in the most generalized manner.

Bitcoin (BTC) and Financial Rewards

And what you mean by that is basically they have specialized computers that have very high computing power, and they run the Bitcoin software and process the transactions, and they are financially incentivized to do this

How are they financially incentivized? Well, there is only 21 million Bitcoin and they are artificially supplied and there will never be anything more than 21 million Bitcoin. And, in the beginning starting in 2009, every 10 minutes, 50 Bitcoin will release to everybody who are running the software. So, that 50 Bitcoin that was released in the first 10 minutes went to everybody who is running the software. Now, not every single person got Bitcoin, but it was split up among everyone who were running the software.

Sydney Ifergan, the crypto expert tweeted:  “Good to understand decentralization, financial rewards in BTC mining and Trustless nature of Bitcoin Network the Pompliano way.”