Bitcoin Forum
December 18, 2017, 07:11:00 PM *
News: Latest stable version of Bitcoin Core: 0.15.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: « 1 [2]  All
  Print  
Author Topic: How do you guys explain Bitcoins to a Non-Bitcoin User?  (Read 1094 times)
Kruncha
Sr. Member
****
Offline Offline

Activity: 420


Winter is coming...


View Profile
April 22, 2013, 12:21:04 PM
 #21

I always like when people ask me "Well, if I can set up a rig to mine them and create them out of thin air, why would I ever buy them on an exchange?"

To that, I usually reply, "Well, you can go mine gold, melt it down, and make your own bars too.  So why do you go and buy those?"

It usually turns out that they don't want to put in the effort..  for either of them.

I agree Smiley

Paper money is a bit like virtual money, as its virtually worthless, except for the trust that you can trade it in at your central bank for gold.

Trust = Value; therefore bitcoins have value.

K.
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1513624260
Hero Member
*
Offline Offline

Posts: 1513624260

View Profile Personal Message (Offline)

Ignore
1513624260
Reply with quote  #2

1513624260
Report to moderator
1513624260
Hero Member
*
Offline Offline

Posts: 1513624260

View Profile Personal Message (Offline)

Ignore
1513624260
Reply with quote  #2

1513624260
Report to moderator
1513624260
Hero Member
*
Offline Offline

Posts: 1513624260

View Profile Personal Message (Offline)

Ignore
1513624260
Reply with quote  #2

1513624260
Report to moderator
Kazimir
Legendary
*
Offline Offline

Activity: 1148



View Profile
April 22, 2013, 12:32:54 PM
 #22

Paper money is a bit like virtual money, as its virtually worthless, except for the trust that you can trade it in at your central bank for gold.
I surely hope nobody actually trusts that, as by no means can everyone's dollars ever be traded for gold.

Oh, and what makes gold worth anything in the first place? Right: the same kind of properties that Bitcoin also has by nature (and fiat money doesn't).

In theory, there's no difference between theory and practice. In practice, there is.
Insert coin(s): 1KazimirL9MNcnFnoosGrEkmMsbYLxPPob
deepceleron
Legendary
*
Offline Offline

Activity: 1512



View Profile WWW
April 22, 2013, 12:37:54 PM
 #23

Most people have never had money explained to them, start there.
Zeal0t
Member
**
Offline Offline

Activity: 78


To the moon?


View Profile WWW
April 22, 2013, 12:40:56 PM
 #24

I use basic terminology such as internet currency and blazing fast transactions, also I point out the lack of centralization and some of the other more obvious benefits in the simplest way I can. Most people end up with a basic understanding, except my shift leader at - that b**ch is straight from the hood.

I vow never to use this space for sleazy referrals, gambling, spam, or to beg for handouts.
Kruncha
Sr. Member
****
Offline Offline

Activity: 420


Winter is coming...


View Profile
April 22, 2013, 12:44:04 PM
 #25

Paper money is a bit like virtual money, as its virtually worthless, except for the trust that you can trade it in at your central bank for gold.
I surely hope nobody actually trusts that, as by no means can everyone's dollars ever be traded for gold.

Oh, and what makes gold worth anything in the first place? Right: the same kind of properties that Bitcoin also has by nature (and fiat money doesn't).

That's my point, after Cyprus and other banking fiasco's, people are loosing their trust (rightly so) in fiat currency, and bitcoin is gaining trust, and accepted by more and more vendors more and more frequently.

Long live the bitcoin Cool

K.
Zeal0t
Member
**
Offline Offline

Activity: 78


To the moon?


View Profile WWW
April 22, 2013, 12:46:34 PM
 #26

Paper money is a bit like virtual money, as its virtually worthless, except for the trust that you can trade it in at your central bank for gold.
I surely hope nobody actually trusts that, as by no means can everyone's dollars ever be traded for gold.

Oh, and what makes gold worth anything in the first place? Right: the same kind of properties that Bitcoin also has by nature (and fiat money doesn't).

That's my point, after Cyprus and other banking fiasco's, people are loosing their trust (rightly so) in fiat currency, and bitcoin is gaining trust, and accepted by more and more vendors more and more frequently.

Long live the bitcoin Cool

K.

Long live Bitcoin! Cool

I vow never to use this space for sleazy referrals, gambling, spam, or to beg for handouts.
needmorecoins
Member
**
Offline Offline

Activity: 65


View Profile
April 22, 2013, 01:04:06 PM
 #27

I find trying to explain mining the most difficult part.
Kruncha
Sr. Member
****
Offline Offline

Activity: 420


Winter is coming...


View Profile
April 22, 2013, 01:20:05 PM
 #28

I find trying to explain mining the most difficult part.

Mining is compiling the recent transactions into a block that can be added to the blockchain, it also works as a means to evenly distribute new wealth.

K.
spanishfry
Member
**
Offline Offline

Activity: 71


View Profile
April 22, 2013, 01:23:18 PM
 #29

i just tell my bosses I'm trading currency while i'm at work
Si Robertson
Newbie
*
Offline Offline

Activity: 28



View Profile
April 22, 2013, 01:23:27 PM
 #30

I tell them to do some research on their own before judging it.
waxwing
Sr. Member
****
Offline Offline

Activity: 469


View Profile
April 22, 2013, 01:50:36 PM
 #31

I'm having this problem too. Had to explain it to someone at work today, she's not even slightly techy. This is what I said:
"I can't explain it in less than 10000 words, so here's the quick version: Imagine if you could send gold through a communications channel to anywhere in the world, instantly, at nearly zero cost. That's basically bitcoin."

I got this after a LOT of reading, it's a paraphrase of one of satoshi's old posts on this forum actually.

PGP fingerprint 4668 9728 A9F6 4B39 1FA8 71B7 B3AE 09F1 E9A3 197A (use email to contact)
Kruncha
Sr. Member
****
Offline Offline

Activity: 420


Winter is coming...


View Profile
April 22, 2013, 02:07:37 PM
 #32

I'm having this problem too. Had to explain it to someone at work today, she's not even slightly techy. This is what I said:
"I can't explain it in less than 10000 words, so here's the quick version: Imagine if you could send gold through a communications channel to anywhere in the world, instantly, at nearly zero cost. That's basically bitcoin."

I got this after a LOT of reading, it's a paraphrase of one of satoshi's old posts on this forum actually.

Nice find, and if they say - "Fiat currency can also be transferred electronically" you say "it just has to go through your untrusted central bank first", followed by "confiscation of money IS happening (checkout Cyprus), they can not possibly do that with bitcoin.".


K.
mattyrain
Newbie
*
Offline Offline

Activity: 11


View Profile
April 22, 2013, 02:12:09 PM
 #33

Gold for nerds. That caught my scientist wife's attention.
LaggedOnUser
Jr. Member
*
Offline Offline

Activity: 56


View Profile
April 22, 2013, 02:15:26 PM
 #34

Bitcoin is a crowd-based form of digital cash that only works on the Internet.

It's crowd-based because its security model requires the majority of Bitcoin servers to agree on what transactions take place so money can't be spent twice or counterfeited.  Like cash, it is anonymous, and you can spend it without being traced.

Imagine Bitcoin as a room full of people that want to keep score in their economy.  Each time someone wants to spend bitcoins, all the interested persons in the room vote on the transaction to validate it.  If a majority of them agree that the transaction was a good one, it is recorded in an official transaction log.  Their actions provide security to the system, in return for which they are occasionally paid with Bitcoins.

The most important new feature of Bitcoin is that your currency (the coins) doesn't have to come from a trusted party such as banks or a central bank such as the Fed.  It is issued by and self-regulated by the crowd, that is, by people running the Bitcoin software over the Internet.  Without the Internet, Bitcoin could not exist or be spent.

Bitcoin also differs from other familiar forms of currency, in that:
* It is issued as a debit, or cash value, not as a form of debt that must be repaid with interest.
* It is issued by the people of the Internet, not a national bank, so it is a truly international currency that can be transmitted across national boundaries with no additional costs or rules.
* It has rules that limit the rate of new coin creation to a predictable level, unlike national currencies which can be devalued by supposedly trusted central banks at any time.
* Unlike most digital forms of currency, your transactions are anonymous, so you can do things like buy drugs over the Internet from Silk Road, launder money, etc. that you could not do before.

Bitcoin derives its value as a currency from the fact that it enables certain kinds of business transactions that did not exist before.  As long as those basic uses continue to exist, Bitcoin (or something like it) will exist to service it.

However, Bitcoin has several weaknesses.
* It only has a few places, like Mt. Gox, where you can exchange it for other currencies, which can result in bottlenecks or those exchanges being shut down.
* Any number of other similar currencies can be created out of the same open source Bitcoin software, all competing in the same space for the same type of business, resulting in less value for each currency.
* Bitcoin has very limited acceptance except at a few pioneering online stores.
* Trying to act as your own banker and secure your own coins on your computer may result in the theft of your coins by Internet hackers or their accidental deletion.

Hm, nevermind, why don't they just read the Wikipedia article. Grin
Kruncha
Sr. Member
****
Offline Offline

Activity: 420


Winter is coming...


View Profile
April 22, 2013, 02:21:47 PM
 #35

Gold for nerds. That caught my scientist wife's attention.

I like that, I will never deny I'm a nerd/geek, They are the people who feel they are not tied to government restraints/abuse policies.

Long live the nerd Grin

K.
needmorecoins
Member
**
Offline Offline

Activity: 65


View Profile
April 22, 2013, 10:59:05 PM
 #36

I find trying to explain mining the most difficult part.

Mining is compiling the recent transactions into a block that can be added to the blockchain, it also works as a means to evenly distribute new wealth.

K.

And all this time i was talking about encryption and rewards and difficulty and crap. lol.
Pages: « 1 [2]  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!