A fun way to learn "How bitcoin works"

[Hewlet]

I came across a video where a guy gave an incredibly fun analysis of cryptocurrency and blockchain technology,  and I feel it will help our newbie a lot to understand this concept. This is how the analysis goes:

Imagine you have a friend named John who has a business partner in a faraway country and needs money today for a business venture,

So, John goes to the bank and says " I have a friend in Spain who needs money today, can you help me send it to him?" And they said " John, we can help you but it will take us 7 to 10 business days I'm sorry. And John starts freaking out and is like, what am I going to do because my friend needs this?

And here is when crypto comes in and says," I heard you needed to send money overseas today, well what you can do is buy a coin from us and we will send it immediately, it's almost as an email.

And John is like, that sounds good but don't email get hacked?

And they are like, yeah John, but we are a little bit different because, every time you make a transaction, we keep your receipt, and not only do we keep it, we organize it in a way that it cannot be altered and what we do is that we store in a file called a ledger and then we put your file in a digital vault which is called the blockchain.

And we will copy this ledger over thousands of different computers across the world so if someone says, John, didn't pay or they are trying to hack you, all we have to do is to look at all the other computers Around the world and we will see very quickly that this person is the one that wasn't playing fair and we can keep your money safe that way.

And so everybody is happy because it's not backed by banks or the government and John has the opportunity to send money instantly internationally and he feels more secure because he knows he is safe by this technology called the blockchain technology that is monitored by thousands of different computers that is always online"


I hope this helps someone.

[Faisal2202]

So, John goes to the bank and says " I have a friend in Spain who needs money today, can you help me send it to him?" And they said " John, we can help you but it will take us 7 to 10 business days I'm sorry. And John starts freaking out and is like, what am I going to do because my friend needs this?

It seems to be a video for children because the script is too simple and it really not explain what actually is happening in the Bitcoin network, but I think it is for only giving an overview to someone who is totally unaware of the BTC blockchain. Well, at the start, a newbie would easily notice and can point out that, banks don't take 7 to 10 business days to send money from one country to another, even though they say those numbers, but they send it very fast. Even in the current era, we can send money from one world to another using banking apps within minutes.

And that would be pointed out by those newbies, and there they will be make up their minds already that, BTC is not providing anything useful. And of course, I have seen many cases, in one, there was a student who had to send the fee to a Uni located in the UK but the Western Union took more time than they promised of and on the last day, the student get to know that his fee did not reach in UNI account and he then went to WU and they said, it will take 10 more days. But the student said, I don't want to send it from you just give me my money back, Well, that's a long story. The point was, in such cases. Money is stuck for a long time.

But BTC might not help us here, because in order to use BTC, the receiving party must agree with it, if they are not accepting BTC as a payment method then we cannot do anything. But that's just a general limitation of BTC or banks (whatever you can call it). Overall, to really understand what is BTC, then experience it and then compare it with banks just like I said in this topic --> To Understand the Potential of BTC, What we Must Know?

[hugeblack]

You wrote a long article without a link to the video. Is the video protected by copyright? Although I do not think that an educational video about Bitcoin would be like that, but sharing the video would be better.

Educational channels on YouTube greatly simplify the information and may lead to incorrect assumptions being put forward because they focus on animation, simplicity, and receiving information to the largest number of people without verifying it. Also, some things related to Bitcoin require people with experience in encryption and Bitcoin.

One of the channels that gives good information -----> https://www.youtube.com/aantonop

[Broadanbig]

Your post is a bit okay to understand for newbies as it clearly explains how Bitcoin transaction works and the essence of choosing Bitcoin over fiat. It however shows the importance and gap bitcoin fills over fiat in the financial system just as you have explained in your articles.

I so much find it interesting to read over and over again but it would have been better of you had dropped the link to the YouTube channel this story was told so we could see it for ourselves learn more from the video. 

[aysg76]

You wrote a long article without a link to the video. Is the video protected by copyright? Although I do not think that an educational video about Bitcoin would be like that, but sharing the video would be better.

Educational channels on YouTube greatly simplify the information and may lead to incorrect assumptions being put forward because they focus on animation, simplicity, and receiving information to the largest number of people without verifying it. Also, some things related to Bitcoin require people with experience in encryption and Bitcoin.

One of the channels that gives good information -----> https://www.youtube.com/aantonop

When you simply search for bitcoin term over the YouTube you will directly be prompted to those fake shillers just trying to sell whatever nonsense they are paid off while people will not search for Andreas videos who's really educating people on the bitcoin stuff with proper guidance and this is why see people getting scammed and don't know how to keep their coins safe.But they should check for authentic resources only not follow whatever they see online.

[Luzin]

So, John goes to the bank and says " I have a friend in Spain who needs money today, can you help me send it to him?" And they said " John, we can help you but it will take us 7 to 10 business days I'm sorry. And John starts freaking out and is like, what am I going to do because my friend needs this?

I didn't think of this, but seeing your story I was quite inspired. Maybe I'll use a way like yours to get started if someone asks. Because if I'm not mistaken, crypto was created the first time it was for this purpose. While investment is a bonus of this technology. Perhaps with this problem many people will be interested in getting into crypto.

But in fact, I have never transacted money from abroad but transactions using Blockchain technology are the best solution regarding a very long transfer process. And it looks like it will cost a lot of money. And my country seems to be a country that has a difficult bureaucracy when dealing with money or goods coming from abroad.

[Zlantann]

I hope this helps someone.

This a simple but helpful way of teaching newbies mainly children about Bitcoin. But we now have instant payment systems that can send money anywhere in the world in a few minutes, an example is the US Federal Reserve FedNow service. However, I know that people still go through a lot of challenges using conventional banking systems. One of the problems we face in my country is the restriction placed on the amount you can transfer to anyone. In my country, you might not be able to transfer more than $1,000 except you pay higher transaction charges. But Bitcoin has the advantage of allowing users to transfer limitless amounts anywhere in the world with competitive transaction fees.     

[BlackBoss_]

You wrote a long article without a link to the video. Is the video protected by copyright? Although I do not think that an educational video about Bitcoin would be like that, but sharing the video would be better.

Because writing long post makes it seems to be better in quality. Another reason can be it is a fabricated story, nothing more. One more reason is writing stories to fish merit seems to be a working method.

I agree with you that sharing a Youtube video link is more easily and it can help many users to watch the video and assess the content by themselves.

[Doan9269]

If you're learning or teaching someone about bitcoin, then you have the idea of something wrong already with the use of banks to have thought for an alternative, whenever you're opportuned to learn bitcoin, take it with all seriousness because not everyone can teach as expected, blockchain and bitcoin has brought in many of these awaited financial opportunities, now that they were being made accessible by everyone, it won't make sense if we are privileged to learn or teach others without doing so, doing eo is more than giving other's money because they have acquired tge path through a financial freedom advisory.

[Lida93]

Quite an interesting way to teach a newbie about bitcoin and how it works. Dropping the video link with the story would have been more helpful for a newbie because my guts tells me that more important things beyond all that's is written in the op can be gotten in the video if a link was provided to it.

There's an impression I'll like to emphasize about how some bitcoin would wanna think about bitcoin when comparing it's useful case to fiat, and that impression is that bitcoin is fighting against fiat to take over the financial system of the world. It's not truly in that thought.

 Bitcoin is just an alternative to the fiat banking system for people who wants financial freedom from centralized censorships about their privacy and based on the anonymity and decentralization the bitcoin blockchain technology offers it makes it an alternate measure  and not that BTC is constantly having a fight with fiat system. No one is forced to adopt, it's a choice based on what money mean to you.

[Coyster]

And we will copy this ledger over thousands of different computers across the world so if someone says, John, didn't pay or they are trying to hack you, all we have to do is to look at all the other computers Around the world and we will see very quickly that this person is the one that wasn't playing fair and we can keep your money safe that way.

I don't know where you got this story from, but this part is not actually correct, this story can be misleading to newbies because the narrator erroneously sounds like nodes and miners are somewhat responsible for the coins you keep in your wallet. Yeah nodes are responsible for validating transactions and relaying it to others nodes, whilst miners find blocks and these blocks make up the blockchain. But mind you that they keep the Bitcoin network safe and not the Bitcoins in your personal wallet, thay also don't they act as mediators if you have a transaction dispute with someone. Bitcoin is a "be your own bank" network, thus you are responsible to keep your assets safe and ensure you are not sending it to scammers.

[Learn Bitcoin]

I did not know that banks take up to seven days to send money overseas because I had never sent money through the bank. I always paid some businesses where I bought services via Bitcoin, and I don't even know where they are located. There are some alternatives to send money instantly, like PayPal and other electronic currencies. But Bitcoin gives you more privacy and security.

It's true that how it works. But your friend needs to know how to set up his wallet and not choose the wrong one, such as exchanges as a wallet. At the beginning of my crypto journey, I picked centralized exchanges as a wallet as I thought those were the wallets to store my Bitcoin. I did not use those exchanges to keep many Bitcoins there. But my understanding was those are the wallets.

I learned that there are a variety of wallets, like non-custodial wallets and hardware wallets, that I can use to store my Bitcoin, giving me complete access to my Bitcoin. So, knowing a few more things before using Bitcoin is essential.

[hugeblack]

Because writing long post makes it seems to be better in quality. Another reason can be it is a fabricated story, nothing more. One more reason is writing stories to fish merit seems to be a working method.

It has become an old style, brevity is a great charm of eloquence.
I hope people stop adding more sentences, especially when they are advice or trivia for beginners. 150 useful words are better than 1,500.

It is difficult to explain the basics of Bitcoin in a few words, especially to someone who has no background, so I prefer animation and presentations that give the word life.

[lovesmayfamilis]

I so much find it interesting to read over and over again but it would have been better of you had dropped the link to the YouTube channel this story was told so we could see it for ourselves learn more from the video. 

If you add a YouTube link to a post, it may be considered advertising. Here is an example of a recent, I think, similar topic, but with a link to YouTube. https://loyce.club/archive/posts/6300/63002744.html
Moderators deleted the topic as unnecessary advertising. Helping YouTubers promote their channels is not exactly good behavior on the forum. There are only a few channels that are respected and can be trusted. In all other respects, YouTubers repeat each other. By visiting their channels, we increase their number of views. Do we want to be allies of  shillers?

[Arenga pinnata]

Many videos on YouTube share insights related to Bitcoin with analogies that are easy to understand even for beginners. And most of these videos use animation which makes it seem like the videos are aimed at children, but it still turns out that videos like that also help me.
Even though what is explained is only the basics, it is enough to start learning for beginners in getting to know Bitcoin and crypto.

So I think now people are starting to become more enthusiastic and more creative in educating and sharing awareness through content creators. There is even education that is conveyed through memes. And it is very helpful for beginners.

[doomloop]

at the start, a newbie would easily notice and can point out that, banks don't take 7 to 10 business days to send money from one country to another, even though they say those numbers, but they send it very fast. Even in the current era, we can send money from one world to another using banking apps within minutes.

That's only the case if you are sending a small amount, and you can't send money from your local banking app to an international account, they don't have such features and you need to go to the bank to get that done, and when that is required, you won't get it done in a few minutes, there is a lot of paperwork and stuff that you need to go through if you are sending a large some that too in another country.

BTC might not help us here, because in order to use BTC, the receiving party must agree with it, if they are not accepting BTC as a payment method then we cannot do anything.

That's an obvious thing, you will surely need to first confirm if the receiving party is okay with receiving Bitcoin, and if they don't already know much about it, you might need to explain a few things to them like how they can receive it and how they can convert those Bitcoins to their local currency. One should at least be able to do that.

[Nwada001]

I hope this helps someone.

This is a simple way of explaining one side of the use of bitcoin and crypto currency, and for those who want to make use of it for sending and receiving money anywhere in the world, it's definitely helpful for them, and they will understand it very well based on the simple illustration that was used to explain it, which I can also say breaks down to a layman's language.
 
At least there are still a few channels that can possibly share good educational material that can be put to good use, because I get tired of the kind of shillers all those YouTube content creators have turned out to be, and they also praise bitcoin sometimes in the wrong way given their followers wrong idea of what bitcoin truly is as they share some sort of story about how they get wealthy as a result of buying bitcoin today and selling it in a month.

[Faisal2202]

That's only the case if you are sending a small amount, and you can't send money from your local banking app to an international account, they don't have such features and you need to go to the bank to get that done, and when that is required, you won't get it done in a few minutes, there is a lot of paperwork and stuff that you need to go through if you are sending a large some that too in another country.

I can not agree more with you, and that's why I wrote that example or WU, where the student have to send huge fee to hi uni but the money was not processed by them. I actually trying to say the same, but I think forgot to write it directly, maybe due to the story. Well, thanks for pointing this out, I hope other readers might not got my point wrong.

That's an obvious thing, you will surely need to first confirm if the receiving party is okay with receiving Bitcoin, and if they don't already know much about it, you might need to explain a few things to them like how they can receive it and how they can convert those Bitcoins to their local currency. One should at least be able to do that.

Nah! we don't have to teach them, at the point of making money, for example, few days back, I have to buy a cake, I went to the shop, but forget to withdraw the funds from the ATM in local currency, well, I ask my brother to withdraw them and  will wait at the counter, well, there was crowd of people (around 2 or 3 people) and it was getting late so I asked the shopkeeper to pay online and he abruptly said, NO!. I said OK ok.

Well, the thing is, you have to follow the rules of others, otherwise no deal, and just to clarify, I was making this statement in the context of the above story, of WU I wrote here.

[serjent05]

Your post is a bit okay to understand for newbies as it clearly explains how Bitcoin transaction works and the essence of choosing Bitcoin over fiat. It however shows the importance and gap bitcoin fills over fiat in the financial system just as you have explained in your articles.

I so much find it interesting to read over and over again but it would have been better of you had dropped the link to the YouTube channel this story was told so we could see it for ourselves learn more from the video. 

It was a good story explaining how Bitcoin works but nothing beats a story with a graphical presentation to make viewers understand the scenario more easily.  I also think a link to the video if there is any will greatly help readers since they don't need to imagine how the story unfolds, they just need to watch it.  Besides, a wall of text (lucky, @OP did not make the wall that high) is somehow tiring to read, and to most they are boring.

[goxcraft]

You can follow Whiteboard Crypto. This channel has almost everything based on crypto. From basic to advanced, the way they explain everything is very interesting. Any newbies who want to join this sector and learn more about crypto can definitely follow this channel. Every element and every topic are explained with examples. The way they teach about crypto is totally different from others. They won't say this is this and that is that. Instead they would make a whole story of the topic, and explain every part lf it.