Bitcoin for Beginners: Bitcoin Explained in Simple Terms

Video transcription

… and a cryptocurrency expert, Ladies and gentlemen, without further ado, allow me to extend a warm Malaysian greeting to Andreas Antonopoulos. Thank you very much. Thanks Hello, everyone, Salam aleikum. It is a pleasure for me to be here.

This is my first time in Malaysia. I have been in Kuala Lumpur for less than 24 hours. I really like it. This is my last book. It was printed in September. It’s called the “Internet of Money.” People often say that this is a difficult topic to understand. Bitcoin is a difficult topic to understand and I have published two books on it.

The first book “Mastering Bitcoin to perfection”, is for programmers engineers, technicians. How many of you are programmers engineers technicians? Is there anyone? Okay, so five people in this room can read the book in question.

It explains how Bitcoin works. Maybe you can read the first three chapters before you get to the technical part from there.

It’s a little hard to read it’s a challenge, not because I wanted to, but because Bitcoin is a complex thing for any of you who are not programmers.

I wrote this book The Internet of Money not to explain how Bitcoin works, but why it’s important?

This is a collection of 11 of my speeches delivered in this format.

It explains the philosophy of money, the importance of Bitcoin for society, and is a book for everyone.

I gave this book to my mother to read and she doesn’t understand anything about computers or money.

So the book is a good start. Before we begin, I would like to feel the people in the audience. I want to know how many of you know the technologies we are going to discuss today. Answer by raising your hand, Let’s start with the narrowest selection.

How many of you own Bitcoin, Okay, someone has tried to have an effect on the community Hello. Thank you for coming.

Thank you for being here. How many of you have seen or experienced a Bitcoin transaction, but do not have money in that currency?

Okay, and how many of you have never made a transaction have no idea what Bitcoin is or how it works?

The topic is new to you great It’s about maybe 30 people, for those of you who do not know the subject. I would like to know whether or not you understand what we are discussing today. Ask your questions.

what is bitcoin, bitcoin beginner

I would like to hear even the most basic questions about Bitcoin, because I think these are important questions. Once we finish the presentation and the questions and answers.

I would like to see the maximum number of people in the audience to install a on their mobile devices and someone in the audience to give them their Bitcoin for free, but not all Bitcoin, but part of it just to see how the transaction is implemented.

You can then contact your friend with whom you started the exchange and exchange Bitcoin with it. The idea is to experiment. I assure you that this is perfectly legal And it’s very easy to carry.

This will allow you to try a technology that is easier to practice than to explain. Yes Next question: How many people who have Bitcoin in the hall have it on their mobile device and would like to help people install a purse in which to deposit one or Two dollars, I would do that, look around, look who raised their hand and look for these people after the question and answer section.

Ask them to help you make a purse. Do not be shy. I myself will be happy to help you in the same way.

Okay. having said that, let’s start with the basics of Bitcoin in October 2008, in an anonymous mailing list called the Cyberpunk Mailing List, an anonymous participant using the pseudonym Satoshi Nakamoto announced the publication of an article, adding.

I think I have solved a computer problem and found a way to create a system of electronic money which is directly between people, user to user, (p2p ).

In the sense of the concept in computer science, I wrote a white paper on the use of this system and applied what was written in the article writing computer code.

On the same day, Satoshi Nakamoto published the White Paper. You can download it online. It is available at bitcoin.org. you can search for it with keywords: Satoshi Nakamoto white paper or Bitcoin white paper. In nine pages, Satoshi Nakamoto describes in detail and in a sense, even predicts many of the things that will happen in the next seven years.

What Bitcoin is what it can become and how it works, But he or they don’t stop there. We don’t know if Satoshi Nakamoto is a man, a woman, or a group of people. Isn’t he an alien from the future?

Well, maybe it’s not the last Satoshi Nakamoto then published the software and invited people to participate in network development.

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This gives you a first hint on how Bitcoin works. Bitcoin is a software application and other stuff download this app. You run it on a computer, no matter your laptop or desktop computer. It is preferable to run it on a computer that is constantly connected to the Internet.

The application currently uses a lot of RAM and disk space, but in those days it was easy to use by computers. If you run the program, it goes online and finds other people using the same program.

You don’t know who these people are. She is not looking for. Certain people creates a random network of peers, which we call a peer-to-peer network, ( p2p ).

Each participant in the system is equal to the others. There is no special computer. All computers talk to each other. This is the equivalent of the crowd in a network sense That is, your computer.

Randomly connects to other computers, running Bitcoin software, and together they create a network. This network is used to execute and promote transactions.

They are encoded in digital format. They contain information about the exchanged, value, and the given permission to exchange value. No one controls this network and this is a very important concept.

No one controls this network. you can control one of these computers, But you do not control the network. You run one of these applications. It connects you with other people and you can manage another application.

It speaks the language of Bitcoin with other computers that speak that language, But no one manages or is responsible for this network.

Similarly, when you control a computer that speaks on the Internet and talks to other computers on the Internet, In fact, no one is in power or in control of the process.

If you communicate directly between these systems, This network began its existence on January 3, 2009.

On this day, the world changed for the first time in the history of money, trust institutions, and humanity. A system was born that is completely independent of government and institutions that builds trust through cooperation, communication, and computing through cryptography.

This system allows people to exchange value to exchange money and this money is called Bitcoin. So Bitcoin is an application.

The software you use on your computer to communicate with other computers using the same software Bitcoin is the name of the network that connects all these computers.

There are 6,500 such as computers in the world. Wherever there is the internet, they demonstrate their presence. There are several thousand who do not, And there are tens of thousands who just listen to this network without actively participating in it.

This whole network is used to create and transfer value in the form of transactions that are measured and expressed in a new currency.

The Bitcoin currency is different from any other form of money we have ever seen. First, it does not exist in physical form. It is the culmination of a trajectory in human history. Over the millennia money has become an increasingly abstract form of currency.

We start with very tangible forms of currency. These are the goods goat, banana pineapple. These are very bad forms of money because you can eat them, they spoil or die.

They can also be lost. These are not good forms of money because they are the most valuable object from this money. We moved to gold, precious stones, and coins. These are better forms of money because you can’t eat them, they don’t die and they don’t spoil. They do not represent value alone. They are not the value, and this is an interesting concept.

Money is not the most valuable thing. money is the thing you exchange for a valuable thing. Bananas are not a good form of money, because bananas are the value you are trying to get money.

Is the thing you exchange for bananas and it has no value in itself? They are just a symbol and an abstraction

Money becomes something I can carry and give to someone tomorrow, and he might give me bananas in return.

This future promise of value is the essence of money. That is the essence of money. Is the ability to have an abstract object that is unchangeable, unadulterated and eternal, retains its value and represents the exchange value in the future as a promise?

Over time, these things have become less physical and more abstract. Why?

Because people don’t like change And if we tell someone in the past, “I’m not going to give you bananas for your work .” I will give you a shiny gold coin, but don’t worry you can use this coin to get bananas.” They look and say: “I’ve always had bananas for my job. I think it’s better to have bananas than this yellow thing .” One hundred years later, they already believe that the yellow thing is valuable.

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Then you tell them : “Now I’m going to give you a piece of paper instead of the yellow thing, but don’t worry you can still turn these papers into bananas and most people said:” I don’t think it’s real money!

I want the yellow thing”. The world goes on and in the end, we are changing and saying: ”You know what you will not receive either the paper or the coin. You will go, look at some numbers on a paper page or on a website.

This is your amount of money in the bank, But don’t worry, you can still use it to get food products and services.

Bitcoin for Beginners: Bitcoin Explained in Simple Terms 1

This is really money, you can’t touch it, can’t see it It’s just a number. Finally, we come to Bitcoin. He has no physical form, It does not exist materially, it cannot be touched. It is just a digital form of money, But this is a digital form of money, completely different from anything we’ve seen before.

The difference is that this is not a form of money recorded in the company’s database or registers. This is not a digital form of money, that is a debt owed to a central bank or government.

This is not a digital form of money issued by a sovereign, a central bank, a nation, a king. This form of digital money is issued through complex and energy-intensive calculations on the Internet.

It is stored simultaneously on each computer that is connected to the Bitcoin network. This currency is valid independently from any computer participating in the Bitcoin network. It cannot be tampered with falsified censored, frozen or confiscated.

It can be transmitted as information anywhere in the world. It can be verified independently by anyone who receives it, and it is not controlled by anyone. Its value is not controlled, Its issuance is not controlled.

Ownership of it is not controlled. It is exchanged directly from one person to another without intermediaries. If I use my cell phone to make a to someone in this room, I’m making a digital transaction recognizing the fact that, through my digital signature, I authorize the transfer of a certain number of Bitcoin that the network knows belongs to me to another Bitcoin holder.

The recipient of this Bitcoin will be able to control the received funds through his own digital signature. Through a cryptographic key, You don’t need to know anything about digital signatures and cryptographic keys. When you use Bitcoin , you see an application on your mobile phone or computer.

The app tells you that you have three Bitcoin. It allows you to see the recipient’s address, which is a number and resembles an email address.

The application allows you to select the Bitcoin number you want to transfer and when you press, send, it uses the digital signature and private key in your device to create and sign a transaction that is reported to the entire Bitcoin network. With the message, I transferred this value.

Then the whole network learns that this amount already belongs to someone else. They don’t know who this other person is. No one knows when you perform a Bitcoin transaction. It is not linked to or attached to an identity. No need to create an account, no need to register, give an ID or name location, address age, gender, race, religion, nationality, anything.

You don’t even have to be human laugh, but it’s true Bitcoin allows for the first time in human history, non-human subjects to control and possess value.

This is strange because we have never had it in any legal system in the world. We have the legal fiction of corporations. Corporations may have value, but they can exist as associations between living human beings with Bitcoin, a software agent that is not owned by anyone can use and use a cryptographic key to own and trade Bitcoin internationally. This creates many interesting and very disturbing opportunities for the future.

Artificial intelligence systems can own and control money without the involvement of any human being. There may be corporations without directors.

They are completely controlled by software without the involvement of human beings, But back to the people.

If you are a person who has installed a , you must go through a complex test to install this software. You must be able to download an application.

That is all If you have an iPhone. You need to remember your iTunes password to install the app so far I’ve noticed that this is the hardest part of participating in Bitcoin global economy, remembering your iTunes password.

But if you can do that, If you have access to the Google Play Store, If you have a basic knowledge of mobile applications, If you can download the .exe file to Windows and install it, you can double-click, that’s it, You don’t have to give your name or email address You don’t register or create an account. Don’t have to prove who you are where you are or prove you deserve it.

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You do not need a credit history, You do not need permission, ( authorization ). This is completely different from any piece of a system we’ve had before For the Internet generation.

The concept is very familiar when you open a browser and start using the Internet. … Do I need to register or get a license to use the Internet?

Do you need to create an account to visit Wikipedia?

No, the only requirement is that you can install open, and use a web browser.

It was a time when the idea of allowing every human being to communicate without borders and censorship on the World Wide Web. It was horrible for some people for some it is still appalling.

Most of the younger generation find this idea liberating on a global scale. Bitcoin does the same with money, What happens when every human being on the planet with a simple download and installation of the application, it can become a member of a global economy without borders that allow people to send and receive money at will anywhere in the world. 24 hours a day without interruption for the last seven years And the fees do not depend on the amount of money you send but are paid simply for the capacity of the network. You use.

You can make a Bitcoin transaction for about $1. It doesn’t matter if you transfer $1 or $100,000. You always pay $1. It doesn’t matter if you send the amount from here to another province of Malaysia or send it to the opposite. End of the earth.

It doesn’t matter if you are an individual or a corporation or send the amount to another individual or corporation, It doesn’t matter. If you send it to someone who is rich or poor, you can do it. Bitcoin completely changes the way we approach it.

Finance, but this is only the first layer of its effects Because the technology that allows two people from opposite ends of the earth to exchange protected value without knowing and trusting each other discovers a wide variety of applications that we have not yet imagined.

Bitcoin blue wallet

Bitcoin is not just money for the internet. Bitcoin is a platform. The technology used by Bitcoin is a combination of ( 1 ). blockchain. The global transaction that records each transaction by ( 2 ).the decentralized consent mechanism called “proof of operation”, which allows security in the bitCoin blockchain from (3 ). The open-access system allowing everyone to participate without borders and from ( 4 ). Its boundless and neutral nature allowing participation, no matter who we are The only thing that matters is whether a transaction is valid not who its source or recipient is or what the size of the transaction is.

These building blocks allowing Bitcoin to exist, open the door to tens, hundreds, and thousands of applications of trust. In essence, Bitcoin is a replacement for “trust through institutions”, with “trust through networks”

For centuries, humanity has depended on the fact that, in order to coordinate activities between a large number of people, we must have something to believe in so far.

The best answer to this problem has been the institutions, rule-driven associations of people, policies with built-in people-led monitoring, transparency, and accountability, to build centers of trust through tradition, reputation, and duration.

Institutions of trust are failing around the world; They fail when they are newspapers. They fail in political institutions, They fail in a number of ways. The reason for their failure is that they are large-scale institutions made for industrial societies And we are no longer industrial societies of nation-states.

We are now information societies with global dimensions, societies that cooperate across borders on a large scale. We are not now addressing issues that affect 30 million people in one country, but 7.5 billion people on one planet.

Traditional institutions do not work for problems and cooperation of this magnitude. They fail to cover the scale. They are not evil, They are not deliberately corrupt, They simply fail to solve the problems of global society In the period in which we see the old institutions failing.

We also see the emergence of new governing institutions. New systems for global cooperation are emerging that allow us to collaborate, communicate, and solve large-scale problems.

The first such system was the Internet With it. We saw the first system of communication that transcends nations and crosses borders. It allows anyone and everywhere to communicate.

Bitcoin represents the same change but happening with money. It is a metric, network-centered monetary system that is beyond the nation-state. It is a network-centered monetary system that can scale and allow people to collaborate globally.

It allows anyone and everywhere to participate in the global economy without barriers without borders, without an ID card without recommendations, just by using software, This will change the world. Thank you.

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