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How To Explain Cryptocurrency

How I Explain Bitcoin And Cryptocurrencies To New Audiences

How I Explain Bitcoin And Cryptocurrencies To New Audiences

How I explain Bitcoin and Cryptocurrencies to new audiences Ive given several informal talks on Bitcoin and cryptocurrencies recently mostly to mixed audiences of finance and tech professionals, with varying levels of knowledge about Bitcoin. Ive found that the structure below has been working well to so I thought Id share it in case it helps others explain it to their clients, colleagues or friends. I dont claim any of the Bitcoin conceptsbelow are mine just this approach toexplaining them. I point out that money is weird: it behaves completely differently when you try to spend it in person to when you try to spend it at a distance. Heres what I mean: If youre physically with somebody, its easy to pay them: you just hand over the cash. You dont need anybody elses help and you dont need anybodys permission. But if youre at a distance, you cant do the same thing: you always need somebody elses help. a bank, a remittance firm, a telco. Somebody has to be there to transmit the value to the other end. And they get to set the rules, they get to watch and in some parts of the world, they dont even exist. The audacious announcements: Nakamotos announcement email and Bitcoin whitepaper And then Satoshi Nakamotos white-paper came along and said something utterly audacious. It said that you could transmit value at a distance with no trusted third party. Five years on, that is still a mind-blowing claim. And its all the more mind-blowing because it actually works. If you take nothing else away from one of my talks, take away the realisation of just how audacious this idea is. I also point audiences at this IBM Academy of Technology TechNote , which I co-wrote. It includes a simple analogy for how Bitcoin works under the covers. But Idont talk about the details during the presenta Continue reading >>

Cryptocurrency - Wikipedia

Cryptocurrency - Wikipedia

HitBTC cryptocurrency exchange terminal window A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions, to control the creation of additional units, and to verify the transfer of assets. [1] [2] [3] Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies . Bitcoin , created in 2009, was the first decentralized cryptocurrency. [4] Since then, numerous cryptocurrencies have been created. [5] These are frequently called altcoins, as a blend of bitcoin alternative. [6] [7] [8] Bitcoin and its derivatives use decentralized control [9] as opposed to centralized electronic money / central banking systems. [10] The decentralized control is related to the use of bitcoin's blockchain transaction database in the role of a distributed ledger . [11] Decentralized cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is defined when the system is created and which is publicly known. In centralized banking and economic systems such as the Federal Reserve System , corporate boards or governments control the supply of currency by printing units of fiat money or demanding additions to digital banking ledgers. In case of decentralized cryptocurrency, companies or governments cannot produce new units, and have not so far provided backing for other firms, banks or corporate entities which hold asset value measured in it. The underlying technical system upon which decentralized cryptocurrencies are based was created by the group or individual known as Satoshi Nakamoto . [12] As of September 2017 [update] , over a thousand cryptocurrency specifications exist; most are simil Continue reading >>

2017 Guide: Bitcoin Explained Simply For Dummies & Beginners

2017 Guide: Bitcoin Explained Simply For Dummies & Beginners

Bitcoin was invented as a peer-to-peer system for online payments that does not require a trusted central authority. Since its inception in 2008, Bitcoin has grown into a technology, a currency, an investment vehicle, and a community of users. In this guide we hope to explain what Bitcoin is and how it works as well as describe how you can use it to improve your life. Since anything digital can be copied over and over again, the hard part about implementing a digital payment system is making sure that nobody spends the same money more than once. Traditionally, this is done by having a trusted central authority (like PayPal) that verifies all of the transactions. The core innovation that makes Bitcoin special is that it uses consensus in a massive peer-to-peer network to verify transactions. This results in a system where payments are non-reversible, accounts cannot be frozen, and transaction fees are much lower. We go more in-depth about this on the page about mining , but heres a very simple explanation: Some users put their computers to work verifying transactions in the peer-to-peer network mentioned above. These users are rewarded with new bitcoins proportional to the amount of computing power they donate to the network. As we mentioned above, there is no central person or central authority in charge of Bitcoin. Various programmers donate their time developing the open source Bitcoin software and can make changes subject to the approval of lead developer Gavin Andresen. The individual miners then choose whether to install the new version of the software or stick to the old one, essentially voting with their processing power. It is in the miners best interest to only accept changes that are good for the Bitcoin currency in the long run. These checks and balances mak Continue reading >>

What Is Bitcoin? The Cryptocurrency Explained

What Is Bitcoin? The Cryptocurrency Explained

Bitcoin is back in the headlines after soaring in value. One bitcoin was worth $2,800 on May 25, up from $1,200 at the end of April. In countries that accept it , you can buy groceries and clothes just as you would with the local currency. Only bitcoin is entirely digital; no one is carrying actual bitcoins around in their pocket. Bitcoin is divorced from governments and central banks. It's organized through a network known as a blockchain, which is basically an online ledger that keeps a secure record of each transaction all in one place. Every time anyone buys or sells bitcoin, the swap gets logged. Several hundred of these back-and-forths make up a block. No one controls these blocks, because blockchains are decentralized across every computer that has a bitcoin wallet, which you only get if you buy bitcoins. True to its origins as an open, decentralized currency, bitcoin is meant to be a quicker, cheaper, and more reliable form of payment than money tied to individual countries. In addition, it's the only form of money users can theoretically "mine" themselves, if they (and their computers ) have the ability. But even for those who don't discover using their own high-powered computers, anyone can buy and sell bitcoins , typically through online exchanges like Coinbase or LocalBitcoins . A 2015 survey showed bitcoin users tend to be overwhelmingly white and male, but of varying incomes. The people with the most bitcoins are more likely to be using it for illegal purposes, the survey suggested. Each bitcoin has a complicated ID, known as a hexadecimal code, that is many times more difficult to steal than someone's credit-card information. And since there is a finite number to be accounted for, there is less of a chance bitcoin or fractions of a bitcoin will go missin Continue reading >>

Cryptocurrency Explained- The Ultimate Guide To Understanding Cryptocurrency

Cryptocurrency Explained- The Ultimate Guide To Understanding Cryptocurrency

Cryptocurrency is the next evolution of money. We know that in ancient days, commodities essential to daily living were considered money (e.g. cows and chickens) and traded among micro-economies. Then the modernization of society and urban cities brought the need to track money and value across large territories of land, which resulted in the birth of paper and coin money issued from the ruling governments. A quarter of a century ago, an invention called the world wide web made it possible for people to buy and sell virtually anything, to anyone around the world using bank-issued credit cards, which are a substitute for paper and coin issued currencies and provide electronic payment. Finally, several years ago, a new form of money that is native to the internet was born - cryptocurrency. Below we explore what this new type of money is, how it works, and how you can get involved. A cryptocurrency (also called a crypto-asset or crypto money) is a medium of exchange like government issued currencies, that uses cryptography to secure the exchange of digital information and control the creation of new units. As alluded to in the introduction, cryptocurrency is simply the next evolution of money. As many things in our world transition to becoming digital, so will our money. Cryptocurrencies provide a viable method of issuing tracking ownership of unique digital representations of value, which we call money. Cryptocurrencies are fully self-contained systems that both control and track each unit of cryptocurrency. Each individual unit acts like peice data moving around a network. Units of a cryptocurrency can be as small as $0.01 USDm or as big as $1 Billion USD. Some cryptocurrencies are controlled by a single entity (i.e. centralized) and others are controlled by the public Continue reading >>

What Is Cryptocurrency?

What Is Cryptocurrency?

Part of Blockchain For Dummies Cheat Sheet Cryptocurrencies, sometimes called virtual currencies, digital money/cash, or tokens, are not really like U.S. dollars or British pounds. They live online and are not backed by a government. They’re backed by their respective networks. Technically speaking, cryptocurrencies are restricted entries in a database. Specific conditions must be met to change these entries. Created with cryptography, the entries are secured with math, not people. Restricted entries are published into a database, but it’s a special type of database that is shared by a peer-to-peer network. For example, when you send some Bitcoin to your friend Cara, you’re creating and sending a restricted entry into the Bitcoin network. The network makes sure that you haven’t not the same entry twice; it does this with no central server or authority. Following the same example, the network is making sure that you didn’t try to send your friend Cara and your other friend Alice the same Bitcoin. The peer-to-peer network solves the “double-spend” problem (you sending the same Bitcoin to two people) in most cases by having every peer have a complete record of the history of all the entries made within the network. The entire history gives the balance of every account including yours. The innovation of cryptocurrency is to achieve agreement on what the history is without a central server or authority. Entries are the representation of cryptocurrency. Cryptocurrencies are generated by the network in most cases to incentivize the peers, also known as nodes and miners, to work to secure the network and check entries. Each network has a unique way of generating them and distributing them to the peers. Bitcoin, for example, rewards peers (known as miners on the B Continue reading >>

Cryptocurrency And Blockchain Explained + Two Cryptocurrencies To Watch In 2018

Cryptocurrency And Blockchain Explained + Two Cryptocurrencies To Watch In 2018

Tap here to turn on desktop notifications to get the news sent straight to you. Co-Founder of Javazen, health buff (not nut) and a coffee aficionado. Cryptocurrency and Blockchain Explained + Two Cryptocurrencies to Watch in 2018 By now you probably know of someone- your friend, your brother, your doctor, your Uber driver, your bosss cousins wifes mother- who made a small fortune off Bitcoin. If you want to make a substantial profit in a short time, the these coins are a good bet. However, financial investment isnt something one should do willy-nilly. In order to go forward with your best foot forward, here are the basics and need-to-knows of cryptocurrencies. One of the first questions I am always asked is about Blockchain. What is it? Blockchain is the backbone technology that powers cryptocurrencies. In laymans terms, It allows digital information to be distributed but not copied. Essentially, there is no monetary trail from transactions. For example, when we withdraw or deposit money into a bank, there are intermediary people and steps between the money being in your hand and in the bank. Now that we know how cryptocurrencies work, lets take a look at some of the over 1,300 different cryptocurrencies that ARENT Bitcoin. Lets start with Ethereum. Ethereum, like Bitcoin, is an alternative currency. Unlike Bitcoin, it is used for more than just buying and selling. It can be used for crowdfunding, voting systems, insurance, decentralized applications, and social networks. Here are some of the benefits of using Ethereum. Permanent - No third party can interfere with the network. Incorporated - Applications are written around the "majority decision" principle and can not be curtailed by a group of people. Secure - Not centralized and no vulnerable, encrypted cryptography Continue reading >>

How To Explain Bitcoin And Cryptocurrency To Your Parents

How To Explain Bitcoin And Cryptocurrency To Your Parents

What is this Bitcoin thing? says your mother as she passes you a hefty bowl of mashed sweet potatoes. Dad pauses, mid-nibble on a turkey leg to chime in, Yeah, is that real money? SEE ALSO: Ron Paul is now selling your grandparents Bitcoin on Fox News Don't be surprised if youre confronted with similar questions as you and millions of other digitally savvy millennials and Gen Zers trudge back home for the annual Thanksgiving Day meal. Its a time to reconnect with family and for family to try and pick your brain about all the culture and new-fangled technology they still dont understand. This is how you can talk to Mom and Dad about the monetary revolution that lives at the intersection of technology and finance. Do not start with Bitcoin is a cryptocurrency, because you will lose Mom and Dad right there. Defining something unknown with something equally unknown is a big no-no. You can say, instead, Bitcoins are like regular money or even, in a small way, stocks. How can it be like both? they will ask you. This is how you can talk to Mom and Dad about the monetary revolution that lives at the intersection of technology and finance. Well, its like money in that it has value and you can use it to buy goods and services. Its also like stock because the value fluctuates based on supply and demand. Unlike stock, there are no dividends, just whatever the bitcoin is worth on a given day. Mom and Dad may smile knowingly at this, pleased that they can show you how well they grasp monetary fundamentals and, maybe by extension, bitcoins. Of course, they will have more questions. So where are these bitcoins? your Dad might ask, Do you have any in your pocket? At this moment, a rueful head shake is in order. This will also give you time to take a bite of stuffing before responding. Continue reading >>

How To Explain Bitcoin To Your Parents

How To Explain Bitcoin To Your Parents

Explaining Bitcoin and cryptocurrencies to your family may not be that difficult after all. Heres a primer. With Bitcoin recently reaching a high water mark of an all-time high of $11,500 , its inevitable that relatives will start asking questions. tried to convince parents to buy me bitcoin in 2010, they laughed at me and i never got bitcoin because of it. EvolaKid (@EvolaKid) November 29, 2017 When your parents ask questions, it somehow ends up either they dont agree with your idea or relate it to their younger years. Of course, thats not a problem, except if you talk about new innovation that has a potential to change their perspective. Bitcoin is one of the hottest topics today, but not everyone can grasp its full potential, especially when you talk to the oldies like your parents. So how can you explain it to them without getting a blank stare? Dont go explaining Bitcoin using jargons like cryptocurrency , rather explain it using examples they can relate to. Defining something unknown with something equally unknown is a big no-no. You can relate it to a regular money or stocks. Explain that Bitcoin is regular money that has value and can be used to buy goods and services. It is also similar to stocks because the value fluctuates based on the supply and demand. However, it doesnt give any dividends, unlike Bitcoin. Now here is the part where your parents will ask where do you get Bitcoins and if you have one available in your pocket. We bet your parents will understand the term digital money so you can use it pertaining to Bitcoin. You can also say that its like a debit card or when your boss pays you through direct deposit. The money goes straight into an account without touching a hand. On the question where can you get one, we'll use the example of a mountain ca Continue reading >>

Cryptocurrency: Explain It To Me Like Im 5

Cryptocurrency: Explain It To Me Like Im 5

If you were paying any attention to rumblings in the payments industry in the mid-2000s, you probably heard someone say the words Bitcoin, cryptocurrency or blockchain. Following these utterances, you probably met the stare of the person talking to you with either a blank look or a look of skepticism, as you probably connected these terms with the dark web and nefarious purchases. Now, cryptocurrency, and Bitcoin in particular, is becoming more mainstream even if many Americans are still confused by the mysterious world of digital currencies . Many skeptics consider digital currency to be a speculative bubble . Some consider cryptocurrency to be the future of payment processing. Either way, lets hop into the discussion to explain what exactly cryptocurrency is and why it should matter to you. Cryptocurrency is the general name given to represent different digital coins. Many people are most familiar with Bitcoin, but there are various altcoins that compete with Bitcoin in different ways. Ethereum, Ripple and Litecoin are some major altcoins you may have heard of (but there are others in the market). Ethereum , Ripple and Litecoin operate a bit differently from Bitcoin . Bitcoin operates off a blockchain, which essentially is a digital ledger of all transactions that occur with the specified cryptocurrency. To put it really simply, the blockchain is managed by ledger-keepers, who are also called miners. While trying to explain the inner-workings of blockchain gets super technical (just think really, really big computers with lots of processing power), just know the ledger-holders must all agree on any changes to the blockchain for every transaction. This keeps everything (the ledger, your transactions and so on.) accurate and secure. For Bitcoin miners, they can earn a Continue reading >>

Cryptocurrency Trading Explained: What You Need To Know

Cryptocurrency Trading Explained: What You Need To Know

20/11/2017 10:01 AM AEDT | Updated 20/11/2017 7:55 PM AEDT Cryptocurrency Trading Explained: What You Need To Know Here is all the important information on regulations, risks and rewards. Concepts such as 'cryptocurrency' and 'blockchain' have become major buzzwords in the financial world as of late and, even if you aren't from an economics background, people are starting to realise that things like Bitcoin and Ethereum can be major moneymakers. Investing and trading in digital currencies is quickly turning into the newest way to jump on the cryptocurrency bandwagon, and while it isn't too late to join the party , wrapping your head around exactly how to do that is one very daunting task. To give you an idea of how big of a thing this is, a single bitcoin (currently the most popular form of cryptocurrency) was worth almost $8,000 AUD at the time of writing this article. And while blockchain technology is still in its early stages of development and will soon become something we use without really knowing -- for most people, it's like we are back in 1994 when the internet or email was developing. So when it comes to putting your money into what could be the next big step in technology, if you find yourself as confused as the television show hosts above, there's no need to worry -- we've got you covered. What Is Cryptocurrency Investing And Trading? Emma Poposka, the CEO of digital currency management company BronTech , told HuffPost Australia that there is a big difference between investing and trading in cryptocurrencies -- but both are becoming more popular among people around the world. "Literally to invest, in the most layman's terms, is to buy a particular cryptocurrency and to wait for it to increase in price," she said. "To trade cryptocurrencies is similar to th Continue reading >>

How To Explain Cryptocurrency To Others

How To Explain Cryptocurrency To Others

Consider it done. I just learned what that meant today Oh Peter, you have opened a whole new world to me! i find these DASH youtube videos to be as good as it gets explaining crypto and blockchain to the average person to be honest i didnt ready anything in that artucle that really tells you how to explain crypto to the average person Honestly, the body of the article seemed decapitated from the title. Itsweird. Wheres the dialogue that explainsand wheres the nevermind If I discover I have someone in front of me that has a genuine interest I use the paper money / printing press analogy, then branch into other inevitable questions. If I know someone isnt really interested, I tell them, Its just another form of moneylike Visa, and I keep on with whatever Im doing, even though I know Visa isnt money, and, I really dont care if they dont know it. i usually start with bitcoin isnt currency its an economy and the value of bitcoin isnt as money, but as a technology To an average person? Dont you lose them when you say the word economy? LOL! I would love to watch this interaction. Im being a butthole to my fellow bi-peds. Apologies. Thanks @Angela ! Ive been listening to this podcast for a couple of hours . Im like a sponge right now! I hardly ever discuss the investment side until they understand the philisophical asspect and why it is better than fiat first. When explaining crypto to normal people I find it best to keep it simple by focusing on a few keys and avoiding a few details. Bitcoin is digital cash money that you use just like the money you use now. Only instead of plastic credit cards or paper notes and metal coins in a leather wallet in your pocket, it has numbers stored in apps, flash drives, and computer programs. Instead of a bank or a country vouching for its v Continue reading >>

Cryptocurrencies Explained, In Plain English

Cryptocurrencies Explained, In Plain English

Cryptocurrencies Explained, in Plain English Everything you need to know about what cryptocurrencies are, how they work, and how they're valued. By now you've probably heard about the cryptocurrency craze. Either a family member, friend, neighbor, doctor, Uber driver, sales associate, server, barista, or passer-by on the street, has probably told you how he or she is getting rich quick with virtual currencies like bitcoin, Ethereum, Ripple, or one of the lesser-known 1,300-plus investable cryptocurrencies. But how much do you really know about them? Considering just how many questions I've received out of the blue from the aforementioned group of people over the last month, the answer is probably, "not a lot." Today, we'll change that. We're going to walk through the basics of cryptocurrencies, step by step, and explain things in plain English. No crazy technical jargon here. Just sticks and stones examples of how today's cryptocurrencies work, what they're ultimately trying to accomplish, and how they're being valued. Simply put, cryptocurrencies are electronic peer-to-peer currencies. They don't physically exist. You can't pick up a bitcoin and hold it in your hand, or pull one out of your wallet. But just because you can't physically hold a bitcoin, it doesn't mean they aren't worth anything, as you've probably noticed by the rapidly rising prices of virtual currencies over the past couples of months. The number is always changing, but according to CoinMarketCap.com as of Dec. 30, there were around 1,375 different virtual coins that investors could potentially buy. It's worth noting that the barrier to entry is particularly low among cryptocurrencies. In other words, this means that if you have time, money, and a team of people that understands how to write computer Continue reading >>

Cryptocurrency Investing, Explained To Afriend

Cryptocurrency Investing, Explained To Afriend

Cryptocurrency Investing, explained to afriend Disclaimer: This review is not intended as investment advice. It is for reference only. Buying crypto-assets is very risky and you should seek the advice of a licensed professional before purchase. tl;dr: Guessing whether Bitcoin is a bubble is hard . The only way to get out of this conundrum is to apply Talebs Black Swan strategy, and invest what your can afford to lose completely as an optionality play assuming you understand what drives currency value (and believe in it). Recommended read beforehand: Bitcoin, explained to a friend . There are several good reasons that explain why Bitcoin has reached its current value, and may appreciate more over time. But there are also clear signs of a bubble: the frenzy, the speculation and people who invest just to follow a trend. We know how these stories end. Because Bitcoin is now a currency (ranking 14th, ahead of Saudi Arabian Riyal), and that currencies are no longer correlated to any underlying asset, it is almost impossible for us to know when a currency is too high, or whether the market is wrong. There is definitely a greater volatility on Bitcoin, but does that mean you should stay away? I studied financial theory for three years, worked in investment banking for three years, and closed / invested in deals totaling >$30bn, but I have never learned as much about investing as when I read Nassim Talebs two books, The Black Swan and Antifragile. Taleb comes with several important concepts, one of which is useful in this case: Seek Optionality. In the face of Black Swan events (unpredictable events with major implications), it makes sense to make small optionality bets that do not have any impact on your life in case you lose your bet. Explanation: if I am worth $100k, and tha Continue reading >>

Using Cats To Explain Cryptocurrency And Blockchain

Using Cats To Explain Cryptocurrency And Blockchain

Using Cats to Explain Cryptocurrency and Blockchain CryptoKitties are collectible and breedable digital cats built on the ethereum blockchain. (AxiomZen) Using Cats to Explain Cryptocurrency and Blockchain The code has been copied to your clipboard. The URL has been copied to your clipboard By now, most people have heard of bitcoin. Bitcoin is a virtual currency that has had a huge rise in value during 2017. Bitcoin however is just one of many cryptocurrencies. A cryptocurrency is a kind of money that does not exist in the form of bills or coins. It is not overseen by banks or supported by governments. It is exchanged digitally between buyers and sellers using encryption for security. Amounts of cryptocurrency are created through a method called mining by developers. Traders work in a trading pit at the Chicago Board Options Exchange, Monday, Dec. 11, 2017, in Chicago, as they trade futures and options unrelated to bitcoin. Trading in bitcoin futures began Sunday on the CBOE. (AP Photo/Kiichiro Sato) Mining involves users of the system lending computing power to record the exact same transactions during a certain block of time. This activity is called a blockchain. A blockchain is a global record of how cryptocurrencies are exchanged. Because cryptocurrencies and blockchains are technically complex, they can be difficult to understand. This has prevented many people from using bitcoin or other cryptocurrencies. One company is trying to change peoples opinions with its new online game CryptoKitties . The game lets people use blockchain technology to buy, trade and breed virtual cats. Axiom Zen is the company behind CryptoKitties. It says the game operates on a blockchain that uses the cryptocurrency ethereum , which is sometimes also called ether. People use ethereum to Continue reading >>

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