Bitcoin - The First Five Questions

[evoorhees]

Posted this on our blog so that others can refer people to it - it's another "overview" of what Bitcoin is, but formatted as "The First Five Questions" everyone is bound to have. This is particularly useful for any journalists who are starting to research Bitcoin.

Not super useful to pros on this forum, but please feel free to use any of it for any purpose. Copy, paste, edit, and redistribute at will.

http://blog.bitinstant.com/blog/2012/9/26/bitcoin-the-first-five-questions.html

[allthingsluxury]

Great post. Anything that helps explain bitcoins easier is good for the community.

[grishnakh]

Good and simple explanation of bitcoin.

[D.H.]

Very good. Would you give me permission to translate it to Swedish and publish it on bitcoin.se? Obviously with proper attribution and a link back to your original blog post.

[evoorhees]

Very good. Would you give me permission to translate it to Swedish and publish it on bitcoin.se? Obviously with proper attribution and a link back to your original blog post.

Absolutely!

Again, no permissions needed on this, but thanks for asking. Use as you see fit.

[D.H.]

Very good. Would you give me permission to translate it to Swedish and publish it on bitcoin.se? Obviously with proper attribution and a link back to your original blog post.

Absolutely!

Again, no permissions needed on this, but thanks for asking. Use as you see fit.

Oh, I guess I didn't read the part about "Copy, paste, edit, and redistribute at will.", I just clicked the link. Well, I'll certainly link back to your post anyway.

[Etlase2]

lol @ zero transfer fees and instant transactions

[Frequency]

Posted this on our blog so that others can refer people to it - it's another "overview" of what Bitcoin is, but formatted as "The First Five Questions" everyone is bound to have. This is particularly useful for any journalists who are starting to research Bitcoin.

Not super useful to pros on this forum, but please feel free to use any of it for any purpose. Copy, paste, edit, and redistribute at will.

http://blog.bitinstant.com/blog/2012/9/26/bitcoin-the-first-five-questions.html

+++
Very usefull info and a great help for my sceptic friends...
 

[Ivica]

lol @ zero transfer fees and instant transactions

Well that's almost correct. Fees are near to zero. While transaction speed... well you don't really send anything at all with bitcoin.

As the world starts to realize the benefits of a real digital currency, it will become used in countless ways. It will become as ubiquitous as email (and for the very same reason - email made the cost of written communication near-zero and Bitcoin makes the cost of monetary communication near-zero).

[Etlase2]

Well that's almost correct. Fees are near to zero. While transaction speed... well you don't really send anything at all with bitcoin.

It's also not correct. Zero != not zero. And fees are only really low because of the mining subsidy. But evoorhees bending the truth whenever it suits him is nothing new or surprising. And sure whatever you say bro on the last sentence.

[Ivica]

It's also not correct. Zero != not zero. And fees are only really low because of the mining subsidy. But evoorhees bending the truth whenever it suits him is nothing new or surprising. And sure whatever you say bro on the last sentence.

It's not for sure that fees will be "huge" in future, for whatever reason. And fees are less, than a penny now.
Actually, don't mind me, just send me tangible bitcoins please.

[kjj]

Very good post.  A couple of points though...

In the answer to question 1, subsection 2, you refer to "normal government currency".  In my view, there is nothing "normal" about government currency.  I would try to rephrase that so that it isn't an endorsement of fiat.

In the answer to question 2, your first two bullet points are sorta wrong.  Transactions are sometimes free, maybe even usually, but not always.  But the fee goes to the operators of the network that secures the system.  And transfers aren't really instant either, which ties into point 7.  I'm not sure how far you want to open that can of worms in an introductory piece.  But I think people would be disappointed if they read this, and then started using the system and got surprised.

Also, point 5 seems like investment advice, which I would be very hesitant to give.

In question 4, you use the phrase "illegal transactions", which I really don't like.  I would say something closer to "can be used to pay for products and services which may not be legal in various places."

[Severian]

These kinds of writings are important because of the learning curve that you mention in the article. The more "Bitcoin for the Newbie" type of posts that are floating around on the net, the better chance of increasing the user base. It also serves to counteract the propaganda onslaught that Bitcoin will experience when it really takes root.

Excellent work, btw. You should think about doing marketing for a living.

[Etlase2]

It's not for sure that fees will be "huge" in future, for whatever reason. And fees are less, than a penny now.
Actually, don't mind me, just send me tangible bitcoins please.

I didn't say they'd be huge, but they certainly won't be free. "Very low transaction fees" is all you have to say to not make a bald-faced lie.

[jwzguy]

Another great article. Keep up the good work!

[bitcoinbear]

Very good explaination of bitcoins.

In the answer to question 2, your first two bullet points are sorta wrong.  ...  And transfers aren't really instant either, which ties into point 7. 

Compared to normal wire trasfers where you wait days, the ten minutes for bitcoin is pretty instant. And the transaction is instantly spread thorugh the network so you don't even have to wait the ten minutes to see the transaction.

[jgarzik]

Sigh.  Come on Erik.  Most of the article is pretty good, but a few key bullet points are quite misleading.

1. Zero fee to transfer money

This is untrue, especially if they follow your lead with...

6. Any amount can be sent (perfect for microtransactions under a penny, for example)

which will require a fee, because microtransactions of low value will not otherwise be relayed.

Why?  Satoshi pointed this out in his original paper, that bitcoin is not so great for microtransactions.

[nobbynobbynoob]

Why?  Satoshi pointed this out in his original paper, that bitcoin is not so great for microtransactions.

+1

A forced transaction fee of 50.000 satoshi (one twentieth of a cent) is hardly onerous and is normally no skin off my nose, but occasionally I as a b1tc01n n00b have already been dissuaded from sending one or two frivolous microtransactions due to this fee. I'm sure others have similar stories.

[helloworld]

the ten minutes for bitcoin is pretty instant.

In addition to all of the above discussion on transaction fees, instant != pretty instant.

In fact I'm not sure that phrase even makes sense at all.

Actually maybe a company rename is in order, to something like bitquitefastindeed.com.

[Roger_Murdock]

Is it, as it has been characterized, a currency of crime?

Bitcoin as a "currency of crime"? What a bizarre notion. In truth, Bitcoin is a hugely important and powerful tool for crime prevention. In recent years, billions of people have been victims of theft on a scale that is absolutely mind-boggling. (I'm referring of course to inflation and taxation.) Bitcoin can help put a stop to this plunder.  And if you're someone who happens to buy or sell certain politically-disfavored intoxicants, Bitcoin can also reduce the risk that armed thugs will invade your home, shoot your dog, terrorize your family, steal your stuff, kidnap you, and lock you in a cage. Call me crazy, but I see the above as a feature.