A good analogy for Bitcoin?

[adhitthana]

Often when I talk to people about Bitcoin they ask questions that seem to indicate that they think Bitcoin is centralised, the way that most things are.
Is there a good analogy that one can use in order to illustrate the decentralised distributed nature of Bitcoin?

[ObscureBean]

Perhaps the reason they seem to assume it's centralized is because subconsciously they know it can't be truly decentralized. Like it or not, Bitcoin is a product of the current system. Centralization can never give rise to true decentralization the same way a dog can never give birth to a human, it can only reproduce its own kind.
For the pseudo-decentralization we're talking about here, you can use a number of analogies. For example, the Bitcoin network could be the base of the pyramid where power/weight is distributed across individual blocks as opposed to the top of the pyramid where power converges to a single point.

[Wendigo]

Bitcoin is like a prison without prison guards and a warden. You can reap the rewards if you have enough following (aka hash power).

[franky1]

bitcoin is a never ending story.

no one owns the IP rights to the story. and there is no single copy of the story, there are many books. but any person can be part of the story and everyone gets to read that same story and add a new line to the story as long as it fits the story

[eternalgloom]

I've found an interesting blog post, Bitcoin by analogy.
It's quite a lengthy text, so not very useful for explaining Bitcoin to people on the spot, but I've enjoyed reading it and it's a pretty good analogy.

http://www.ybrikman.com/writing/2014/04/24/bitcoin-by-analogy/

[Kprawn]

Why use a analogy, if you can show them a graphical representation of the decentralized nodes? Just point them to this site, if they want

a updated graph. --> https://bitnodes.21.co/ ... Bitcoin is like a global spider web... it's stronger than titanium and Chuck Norris cannot

even break it. That should do it. 

[amacar2]

It is the reality that early adopters of bitcoin holds thousands of bitcoins because there were not so much interested one to grab bitcoin on early days. And now as adoption grows significantly some of those early holder still have thousands of bitcoin and they are actively trading for profit and we all call them as whales. But bitcoin network is still healthy with thousands of active nodes and thousands of miners actively supporting bitcoin and these nodes are totally decentralized over the world.

[Junko]

With Bitcoin, you are your own bank.

[piloder]

Checking https://bitnodes.21.co/
5351 total nodes out of which around 1500 hosted in usa (mostly hosted over VPS platforms)

So atleast other around 4000 nodes are distributed around the world suprised to see only China 185 (3.46%) nodes.

Better to show them this charts and make them clear their thoughts that actually bitcoin network is more decentralized than normal bank servers and online payment processors atleast.

[Yakamoto]

Often when I talk to people about Bitcoin they ask questions that seem to indicate that they think Bitcoin is centralised, the way that most things are.
Is there a good analogy that one can use in order to illustrate the decentralised distributed nature of Bitcoin?

You could mentioned that you have as much of the data required and available tools to keep the network running as anyone else, and specify to them that the network is composed of individuals more than likely much like yourself. There is no central hub, and rather a bunch of data points being moved between a ton of independent nodes.

[hv_]

Like a single mushroom, but the largest living network on earth

http://news.bbc.co.uk/2/hi/science/nature/869808.stm

Fungus monstrosus

 

[MONKEYJUNK]

I like analogys... But are you talking about bitcoin or blockchain?

Bitcoin is money (and it's not an analogy, it's a fact)

You just can say: None can print more bitcoins, none can control it, people just buy/sell/use/hold and that determines the price.

[Snorek]

I guess if you are explaining concept of Bitcoin to a total newbie you can use "internet analogy".
Bitcoin is similar to internet as a whole, even if you destroy part of the network rest will still be operational.
Imagine that on every machine linked to internet a copy of certain files were stored.

Of course it is only very simplified and not very accurate definition but may be sufficient as starting point for more detailed discussion.

[Wind_FURY]

Often when I talk to people about Bitcoin they ask questions that seem to indicate that they think Bitcoin is centralised, the way that most things are.
Is there a good analogy that one can use in order to illustrate the decentralised distributed nature of Bitcoin?

It takes a special kind of person to appreciate decentralization, libertarianism and "sticking it to the man". If you see that the person you are talking to is the usual worker-drone who usually does not care about anything except for the petty things in life then do not bother explaining Bitcoin to them. You will not make them interested in the concept and you will only be wasting your time.

[Kakmakr]

Decentralization has been a concept that has not been explored by many people. The closest some of them might have come to having any experience of that, might have been when they used some P2P network to download a pirated game or a movie from some Torrent network. ^hmmmm^

So I can see why you would have some difficulty to explain it to the average guy on the street. The best I can explain it, is to tell them that each Bitcoin user < running a node on their computer > are a branch of a bank ledger that are not controlled by anyone. They are a bank on their own. ^smile^

They are linked together with software that was made available by a anonymous pseudonym, called Satoshi Nakamoto. 

[Wind_FURY]

So I can see why you would have some difficulty to explain it to the average guy on the street. The best I can explain it, is to tell them that each Bitcoin user < running a node on their computer > are a branch of a bank ledger that are not controlled by anyone. They are a bank on their own. ^smile^

It might be easy to tell people to run their own node years ago but it will be laughable to make an ordinary person run one today. Have you seen how large the blockchain is and how much it is to maintain one? To maintain a node you have to have a special love for Bitcoin and some extra money because there is no incentive. Your everyday ordinary person will for sure not be willing to run a node.

[bitbunnny]

Maybe using Bitcoin could be compared with freelancing. You don't have an employer, you work how much you want and when you want, you set you own terms. Similar is with Bitcoin too, there is no bank or government institution who would control it, you use it where you want it and how you want it, no one is manipulating with it.

[jacafbiz]

They think of Bitcoin been centralised when you try to explain to these people how Bitcoin was created and you mentioned miners, they think anybody should be able to mine Bitcoin which is true but would everybody be able to get the financial resource to get enough hash power to get a Bitcoin.

[Barbut]

Good topic, I also have problem to explain what is bitcoin to some people. When I talk with someone about bitcoins I always ask that person about fiat first, to check what they know about fiat. And in many cases people doesn`t know nothing about it, they just use money without any thinking.
Only then I tell them how bitcoin is different, and compare some things to them. I think that is easier for them to understand. But I noticed that there is some very stubborn persons, no matter how I try to explain them they just not accept the fact that there is something like bitcoin, for them that is some invisible scam, that will make zombies out of people cause we stare in computers all the time.

[Monetizer]

The way I like to explain it is bitcoin only runs by connecting computers so that every person that runs bitcoin controls it and the only way to change bitcoin is to have more than 50% of users make said change.