"understanding Bitcoin" 

I feel like people maybe give explanations that are too complex?

What I think people should know:

- it's a virtual currency that's completely unregulated
- it is highly fluctuating in value because people do speculation on it (like the real world stock market)
- the transactions are anonymized (sorta, there's no named associated to them but that's it)
- the combination of all the computers that generate them consume energy in gargantuan proportions and that's the main problem about it

Most other cryptocurrencies are like that too. I don't think it's needed to get into what blockchain and mining is to people

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"understanding Bitcoin" 

(okay I redrafted this twice so it's not that easy but yeah)

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Bitcoin & blockchain 

@Siphonay Thank you very much for the explanation.

Speaking of blockchain, for years I would read many articles about it, yet to this day I still have no effing idea what it does and how it works. It's probably not that important...

Or is it?

Bitcoin & blockchain 

@ady_luimeme I think it might be better to approach it as a database structure model rather than systematically associate it with cryptocurrencies

Bitcoin & blockchain 

@Siphonay @ady_luimeme yes, instead of having one big server managing the database, you have hundreds of little computers which manage a database and communicate constantly between them to verify that the information they have are correct

It's why some people trust more cryptocurrencies than regular currencies, because they can if they want become part of the network and check with the others that every transaction is okay

Bitcoin & blockchain 

@darckcrystale @Siphonay I think I kinda understand. x)

Bitcoin & blockchain 

@darckcrystale @Siphonay @ady_luimeme Decentralization! Yeah. The other part of a blockchain is that it's bunch of…uhh…blocks, where each one is tied to the one before it, forming a…chain. In bitcoin, the blocks contain lists of transactions[*], and the longest chain out there is the one that's considered to be the real one (so the network is run by majority-of-computing-power rule). Bitcoin also requires the hash of each block to start with a certain number of zeroes (determined by the current difficulty, which is decided by the network based on how much computing power is in it). That means generating tons of blocks with changes to a dummy value until you happen to make a block that meets this requirement and can publish it, which takes time and effort.

(*: This is specific to bitcoin. Blocks can contain other things; for example, you can think of git as a kind of blockchain that stores versions of source code.)

"understanding Bitcoin" 

@Siphonay Very well put. And I agree with you that people don't need to get into Crypto. Aside from a more secure transaction than credit cards, there just isn't much advantage. The fact that it fluctuates so much shows that it doesn't work as money to begin with. Bitcoin is supposed to simulate Gold but there are reasons why we got rid of Gold Standard currencies a long time ago.

"understanding Bitcoin" 

@Siphonay i would add that traditional banks also consume a lot of energy and exploit people, so it's not an only cryptocurrency problem

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