Bitcoin Forum

For me, Bitcoin comes up in conversation a lot, and I always have trouble explaining to people exactly what it is, without completely confusing them.  I usually call it "anonymous digital cash," or something to that effect.

Any thoughts on how you explain Bitcoin to the non-initiated?

I prefer "digital gold". Leave the anonymous part out, almost no one care, it makes bitcoin look shady and it will be implied once you say that it is decentralized and no one control it anyway.

Explaining it to dumb people is always hard anyway, people who never cared how informatic work? Chances are they won't care to understand what bitcoin is

Tell them what you can use Bitcoin for (quick transfers, anonymous hoarding etc). That will make them interested enough to look it up themselves.

In brief, I'd tell them it's a currency that doesn't go through any banks, making for quick, anonymous payments.

I'd say this approach would probably get the point across and rustle their jimmies a little.

It's simple - if you want to stay anonymous you have to be represented by someone who won't disclose your identification and can't be traced back to you. Similar to how internet proxies work. The proxy acts as a payment transmitter.

Another option instead of simply converting to cash for everything, bitcoins can be spent when making purchases.  If the places you would consider spending your coins at don't currently accept bitcoin, each reminder the merchant receives about bitcoin will help make the day where they do accept bitcoins come sooner.

Anything else than real life meeting has the problem of being asymmetric. That means someone has to provide trust.

I think a good way to describe it this:

'Imagine if banks couldn't just seize your assets to bail themselves out, imagine if you had control/responsibility for your own money.

...And then, just imagine the possibilities...

EDIT: For this to work, you need imagination ;D

K.

it's funny how people think that bitcoin is independent from banks. why do you think banks won't use bitcoins if it gets really popular?

Stay away from mining, people won't understand it.

i just say. You know how when you go to the bank they arnt back there moving cash from one bucket to another, instead they use a ledger where they keep everyone's balances, and when you send money to y than they deduct that from your balance and add it to y's balance on the ledger. Well bitcoin is just like that except there is no central bank to maintain the ledger, instead everyone who uses bitcoin keeps a copy of the ledger. Then i go into the myriad of advantages this offers over traditional banking.

The way I describe it is that the "coins" themselves come from "blocks," and a "block" is a valid solution to an extremely complex math equation. The difficulty in finding a solution that works is what gives the "block" some sort of value, and the value base (the actual trade of something for something else that creates value in a currency) is that you're consuming electricity in exchange for these valid solutions.

Most folks seem able to wrap their minds around this.

hmm hmm a bitcoin, I explain them to family and friends basically saying:

"you know how we used to have paper cash a few years back? and this was the only way of buying things? then we had chip and pin? and now we buy things over ebay just by entering our card numbers? well now some techie brain box has created these things called bitcoins and they are similar to chip and pin or paypal but they aren't used in this country alone and, there global.... and the fees are cheaper because your bitcoin is worth the same in every country.... so if you buy a shirt from America then a pair of shoes from china then if you had bitcoin it would be worth the same in any country. there wouldn't be exchange fees or commission it would be as simple as buying or selling something in our country with our money."

so I just sum it up by saying, imagine a currency that you can use anywhere, in any country, a global currency. that is what bitcoin is. no exchange rates, no bank delays, no commission.no hassle.

just smiles all around  ;D ;D ;D

Bitcoin is another medium of exchange. A brilliant man, Satoshi Nakamoto developed this digital currency that does not rely on any government or bank to operate. He engineered some computer code that allows our computers to perform operations to earn this currency called Bitcoins. Anyone with a computer can earn Bitcoins. Slowly many merchants such as Wordpress.com and Reddit.com are accepting Bitcoins as payment.