BITCOIN FOR BEGINNERS 💰 Watch This BEFORE Investing In Bitcoin!


– So today we’re going to be talking about Bitcoin for beginners. So now, before I get into this video because Bitcoin is such a broad topic, I wanted to point you
guys in the direction of where this video is heading just to make sure this is
the video you’re looking for. Because there are so many possible things you could be looking for about Bitcoin and you may be somebody
who is further along in the learning process
and this may be very basic information for you. So I intend this to be a
video for a complete beginner who does not understand
Bitcoin and you’re looking to learn the basics and
you’re also someone who might be interested in investing
in this currency. So because I have an
investing channel on YouTube that is who I’m gearing this video towards so I just kind of wanna point you guys in the direction of where I’m heading with this video. First of all we’re going to define what Bitcoin is as well as
what cryptocurrencies are. Then we’re going to talk
about Bitcoin versus traditional Fiat currencies. Then we’re going to talk about why someone would use a digital currency
or what the benefits are of the digital currency. Then we’re talking about
what is a Fiat currency or our traditional
government backed currency, we’re going to go into that. How Bitcoin is used. The basics of Bitcoin mining. By no means am I an expert
on Bitcoin or Bitcoin mining so we are not going to be
going in depth about that but we’re gonna cover the
basics that you should know if you’re someone who wants
to invest in this currency. What determines the Bitcoin value? The concerns that people
have or the main concerns people have about Bitcoin and then how to actually go about investing in Bitcoin. So guys, that’s where we’re
headed with this video. I just wanted to make sure
you are on the right video. If you’re looking to learn those basics. But anyways, guys,
let’s get right into it. So basically Bitcoin is a
decentralized cryptocurrency payment network. Bitcoin is the payment network, so when it has a capital B
in front it’s referring to the actual network itself
and when you see bitcoin with a lowercase B this is
the actual unit of currency. So Bitcoin with a capital letter, that is the overall decentralized
cryptocurrency payment network itself while the lowercase version is just one unit of this payment network or one unit of that currency. Now a cryptocurrency is a digital currency where encryption techniques
regulate degeneration of units of currency as well
as verify the transactions. And we’re gonna get more into
that transaction verification when we talk about the
actual bitcoin mining process and how those transactions
are verified, basically. The decentralized Bitcoin network operates independently from a
central network or bank. So traditional currencies,
they have a centralized network or bank that basically
facilitates all of those transactions and the
generation of currency as well. So it is a centralized
network and there are many advantages to having
a decentralized network. First of all, with a decentralized network there’s a lower risk
of having that network being compromised because
it’s not centralized to one specific location. One common thing, and
many of you may disagree with me on this but, the general population does
not understand Bitcoin. Most people just don’t
understand it because it is confusing and at first
I did not understand it. If you guys have been watching
my channel for a while I’m sure you saw a video
I did a couple weeks ago talking about Bitcoin and it
was a very under researched video and I apologize about
that because I really had no business making that video. And you guys did not hesitate
to call me out on that so I apologize about that
but this video is much better researched and I hope this is
a much better quality video for you. But the currency is used to
purchase thousands of illegal items each day but
unfortunately due to the use of this currency in the
purchase of illegal goods and services, there’s kind
of a stigma surrounding this currency, okay. So Bitcoins are the preferred
currency of the deep web. The deep web is basically web
pages that are not indexed by Google so if you went on there
and you searched in Google how to buy marijuana. You’re not gonna be linked
to a webpage because they’re not going to index the pages
of these illegal services being offered so in order
to access the deep web you have to have a method of getting to it and most people used an
anonymous web browser and you have to have the actual link to be able to get to these pages. Most people used to use
the Silk Road Marketplace. I’m not sure if that is still around. Obviously I’ve never been on the deep web. I have no interest in going there. It’s kind of cool, though,
if you guys wanna look up that on the internet
or on some YouTube videos, it’s kind of cool to find
out more about that deep web. Well, people would use
that Silk Road Marketplace as a way to buy illegal
goods and services. But in order to access this you
need to go onto the deep web and basically have links to get there. So if you go online on
Google and search for illegal services and illegal things, obviously Google is not
going to index these pages or direct you towards them
because these are things that are illegal. So because Bitcoin is the
preferred currency of the deep web due to its anonymity, it’s used to purchase
illegal things like drugs, illegal firearms, forged documents
and even hitman services. I’m not kidding you guys,
you can go on the deep web and basically buy a service
to have someone killed. It’s very scary stuff that
nobody should be involved with but this is one reason that people are concerned about Bitcoin. And the truth is, guys,
just as many people purchase illegal services with
regular Fiat currency. So this is no reason to
be concerned with Bitcoin. Just because it’s used to purchase illegal services and goods, there’s plenty of people doing
that with regular US dollars and regular currencies every single day. So that’s not any reason to avoid Bitcoin. So a little more information about that Silk Road Marketplace. This was basically the
online black market. Part of the deep web, like we said, you have to have specific
links to access it, you would browse securely and anonymously without traffic monitoring. Most people would use the Tor web browser for to basically mask their IP address and then you would purchase illegal goods and services with a
bitcoin for full anonymity. So at that point, you
are browsing anonymously and then purchasing with
bitcoin to purchase anonymously that way that transaction or that purchase can never be linked back to you. So that is the basics of Bitcoin, basically how people have used Bitcoin and the main reason people
have concerns with it which is the fact that it has been used in the past and still is used today in the purchase of
illegal goods and services but like we said, plenty
of people are doing that with regular currency
so I personally don’t see that as a concern. Now I want to explain the major reason that people like Bitcoin
and that is the fact that Bitcoin is a finite resource. And what I mean by this is there’s only so much of it out there and we’re gonna go into
that with this video and explain why that is. But the thing is with
traditional Fiat currencies like US dollars, we can
just print more money when we decide that we
wanna print more money, they can just go ahead and
say okay, we’re going to increase the supply of US dollars. US dollars are backed by a government. They’re not backed by anything physical. Now Bitcoin is backed by the
physical Bitcoins themselves. It’s not a physical thing, but it is a digital currency so it is backed by something
and there is a finite number of bitcoins that exist. And a certain number are mined each day. And that number is
decreasing as we go forward. We’re gonna explain that
more as we go along here. But unlike Fiat currencies,
Bitcoin is a finite resource. It’s most similar to
commodities like silver or gold. We cannot make more
gold, silver or bitcoin. There is a set number that exists, you can’t just go out
there and decide okay, we’re gonna make more gold,
we’re gonna make more silver. With traditional Fiat
currencies you can say, absolutely, I’m gonna
make more US dollars. But you can’t go out there
and make more bitcoins, that is why many people like
the principle of this currency. Now 21 million is the
maximum number of Bitcoins that will ever exist. This is basically set up in
the algorithm of Bitcoin. And the final bitcoin will be mined in the year 2140. So the last bitcoin
will be mined that year and for those of you who are wondering because right now roughly 16.5 million of those 21 million
bitcoins have been mined. So at that rate it seems
like we would hit that, the last final bitcoin
being mined, a lot sooner. But the thing is there is a
block reward having frequency. Every four years, the
actual reward diminishes by 50% so over time you’re going to see less and less bitcoins being given out as far as a token for
facilitating that mining and you know, taking care
of those transactions. So that is why that decay ratio leads it to the point where we’re not
gonna see that final bitcoin, the 21 millionth bitcoin being mined, until the year 2140. Like I said, roughly 16.5 million bitcoins have been mined so far at
an average rate, right now, due to that halving
frequency of 1800 bitcoins being added each day. That’s basically what the miners are given for mining those bitcoins. It’s their reward for
facilitating this whole network and these transactions. Now what’s interesting is
that most of the currency is inactive, sitting in Bitcoin wallets. So while most currency is being used in the purchase of goods,
most people use US dollars to buy things, most
people that have Bitcoin are not using it. They’re just sitting on
it because they are hoping it appreciates in value
which it has significantly. So most people who have
Bitcoin are not using it to buy goods, they’re not
using it to go out there and buy things like coffee
or go travel and to pay for things, they’re using Bitcoin
mostly just to sit on it and hope it appreciates in value. Okay, so why would someone
use a digital currency like Bitcoin? There’s a couple of reasons here that support the use of digital currency. Number one is the fact that
there is no central authority because there’s no government
backing this currency. That is why many call
Bitcoin the currency of the people because it is the
people involved in a network who ultimately control the currency. Number two is basically the same reason. It’s kind of similar, pretty
much, freedom from a government and the rules are set by the people. So those very much tie in together. The central authority also
has to do with the fact that this is a decentralized network. There is no central bank or authority that facilitates all these transactions. It is a network controlled and operated by the people. Number three, there
are no political issues sending money. So if you’re sending money to people from other countries, you don’t have to worry
about political issues like any kind of control
or confiscation of money. You can send money to someone
else in another country and the government has no right to step in or get involved because they have nothing to do with this currency. It is the currency of the people. Number four, no bank account is needed. This is a plus for some
and a minus for others because people who are
concerned about the security of the Bitcoin network
as far as not having any bank account needed,
there’s no real verification as far as opening a Bitcoin wallet. So that does make it an anonymous currency which is a concern for some people. But for other people that is
the reason they like Bitcoin is for the anonymity so that’s one that people will go either way on. Number five, it is cheaper to send money, it’s faster and it’s safer because of this decentralized network that
validates all these transactions. Number six is the fact
that the physical Bitcoin currency, there is a
limited supply out there. We already talked about how
Bitcoin is very similar, if not pretty much the
same as a commodity money. Actually we’re gonna talk about that. I got ahead of myself here. We’re gonna talk about commodity
money here in a second. Number seven is a good one, too. There’s no risk of counterfeit money. There’s no such thing
as a counterfeit bitcoin and it can never exist. First of all, because it is non-physical. Physical bitcoins are not real. There’s no such thing
as a physical bitcoin. It’s a non-physical digital currency. And as a result, every
single bitcoin out there has a detailed history
so it would be absolutely impossible to counterfeit this money. So now let’s talk about a Fiat currency which is the currency we
are familiar with today. Basically this is legal tender who’s value is backed by the issuing government. So nothing backs this currency, nothing holds the value of this currency other than the strength of the government backing that currency. Now US dollars, the Euro and
many other world currencies are what you call Fiat money. Money backed by a government. Fiat currencies can be
inflated or deflated based on the supply. So that is the big
difference between Bitcoin and Fiat money is the fact
that if the United States wants they can print more money
and increase the supply to adjust the actual
value of that currency. Now you cannot make more Bitcoin
as we already talked about, the network is set up in
a way that there’s only ever going to be 21 million
bitcoins with a controlled supply entering the market. You cannot simply make more bitcoins, it doesn’t work that way. So that is the big difference is the fact that Fiat currencies, nothing
is preventing the government from just printing more money. They can just make more of it and basically deflate the value through more supply on the market. Fiat money is not backed by a commodity. Like I said, it’s just backed
by the issuing government. Now commodity money is
what we used many, many years ago, this is basically
money where the value comes from what it is physically made of. So think of silver or gold coins that you may still have. I actually have a collection
of a bunch of silver coins or junk silver just ’cause
I was collecting coins at one point but those coins
that were physically made of silver, that is commodity money because the value is in what
the actual money is made of. Or what the money is backed by. So when we were on the gold standard, that was commodity money
because our dollars were backed by gold. So in theory, you could
have cashed in your dollars and gotten the equivalent
amount back in gold. That is what you call a commodity money or a backed currency. Now Fiat money is not backed by anything. It is backed by a government alone. Now that is why you can’t make
more commodity money, either, because there’s a finite
amount of it that exists. So if our dollars were backed by gold we would have to have the
equivalent amount of gold in reserve in order to
issue more currency. Or if our money was physically
made of gold or silver you obviously have to
have that gold or silver in order to make more of that currency. So US dollar and other Fiat
money is called free floating because it’s not being backed by anything. It’s just out there floating in the air. The only reason it has value
is because we give it value and the government
basically gives it a value and we all agree, okay,
yes, this has value. This holds value. It’s backed by the
strength of our government while Bitcoin is backed
by commodity money. It’s backed by the physical
bitcoins themselves and the fact that there is a finite number of these bitcoins out there that exist. So how is Bitcoin traded or basically how do you use bitcoin if you have it? Well, if you’re looking
to send money to someone, you would basically send
bitcoin from one digital wallet to another in a peer to peer network. Now if you are looking
to invest in bitcoin and that’s the last thing
we’re gonna talk about in this video is two ways to invest. It’s very easy to invest
in Bitcoin, not much to it. But bitcoin exchanges allow
the coins to be bought and sold on the open market,
similar to a stock exchange. It’s the same exact kind
of deal where you’re exchanging bitcoins with
other buyers and sellers. And the actual Bitcoin
exchange charges a fee for facilitating that transaction. Now you can also, if
you find a bitcoin ATM which these do exist out there, I’ve never seen one. But you can go to a Bitcoin ATM and trade Fiat currency
for the equivalent Bitcoin at whatever the Bitcoin
to that currency value is at that time, whatever
that exchange rate is. Now bitcoins can be
used to purchase things as the currency is infinitely divisible. So you can have .00001 bitcoins and whatever that would
be worth in US dollars you can divide that as
many times as you want because it’s a digital currency, it’s a non-physical good. That’s one of the downsides
of a physical commodity money is it’s really hard to
cut a gold coin in half or to cut a little chunk
of silver off there. You cannot divide it. So that’s one of the advantages of having a divisible currency is you can divide it up into
as many chunks as you want but obviously if everything,
let’s say everything went to shit and we’re
back using gold and silver to pay for things and you had a gold bar and you’re trying to buy a loaf of bread, what are you gonna do? Flake off a little piece of gold to buy that bread? That’s the advantage of
bitcoin is the fact that it’s infinitely divisible. Now what’s also interesting
is that every transaction, any of the things listed above here, this is recorded on the block chain. Now think of the block
chain as the public record. And every single person
involved in this network has to be in consensus
on that public record so they all have to
verify the transactions against that public record and decide, okay, yes, this is legitimate. Or okay, no, this is not legitimate. That’s gonna make a little
more sense right now. Let’s talk about the
basics of bitcoin mining. And guys, this is where
I’m going to be honest. This is not my area of expertise. This is the very basics of it. If you wanna learn more about
it I’m sure you can find so much more information
about bitcoin mining but I just wanted to explain
the bare bones essentials as far as what you would need to know. So basically bitcoin miners
which are the people out there who actually buy the equipment, buy the computers and mine these bitcoins, what they’re doing is
solving complex math problems and puzzles and in exchange
for them doing that, what they’re basically doing is validating and facilitating all these
transactions in this network and basically in exchange for doing that, they are issued bitcoins. Now they’re not issued whole bitcoins, they’re issued fractions of bitcoins because it’s divisible. Now mining is intentionally difficult and resource intensive
because they want this to be something that people
have a difficult time doing so that way not one person
can control the whole network and get all those bitcoins. It’s intentionally difficult
and resource intensive. That’s why you need very sophisticated and advanced computer equipment in order to be a bitcoin miner. You can’t just take your laptop out or your regular desktop
computer from your house and start mining bitcoins. You have to actually
build or purchase machines built for bitcoin mining that are built to handle those resource intensive math problems and sophisticated loads. Now this creates an incentive
for the actual bitcoin mining which remember, is how these
transactions are facilitated and you also need miners
all over the world in order for this to be
a decentralized network. If one group of people
did all the bitcoin mining that would be a centralized network because it’s all
happening at one location. So they want this to be
a distributed network all over the world and
they want many miners involved in the operation. So this is a perfect way to do this is by giving them a small amount of money or a small amount of
bitcoin for facilitating those transactions on
a distributed network and this is also a
smart way of circulating the new currency because
everybody’s handed a small amount of the money, it’s a good way to put those new bitcoins that are being mined into circulation. Now the bitcoin miners
validate transactions keeping the Bitcoin network secure. That’s essentially what their job is as a bitcoin miner. And any transactions are
added to that block chain or think of that, again,
as just a public record for consensus. Now the block chain basically
allows miners to separate legitimate transactions from
things like re-spend attempts. So let’s say you already spent all the bitcoin in your wallet and you tried to re-spend that money. That transaction will not be validated because the miners will
look at that block chain and go wait a second,
no, you spent that money. Here’s the record of this transaction. And it would be looked at as
an illegitimate transaction. That is essentially what
the bitcoin miners do. That is how they spread
the new currency out and that is what makes this
a decentralized network. So now here’s a big question
many, many people have. What actually determines
the value of Bitcoin? So if you go onto a bitcoin price chart and you see what US dollars would get you in terms of bitcoin and
you see how that price changes all the time, you may be asking yourself
how is that value determined? And the truth is there
are five main factors that contribute to the value of Bitcoin at any given time. Number one is the fact that
there is a finite supply on the market. So right now there are
roughly 16.5 million, I think we’re just shy
of 16.5 million bitcoins on the market. Secondly is the fact that
there is a fixed number of bitcoins being added
to the market each day. That would be 1800 per day. Number three is the fact
that there is a finite number of this resource that exists which is 21 million bitcoins. There will never be
anymore than 21 million based on the algorithm. Number four is a big one, too. This is the slowing
supply going to the market and like I said, guys,
this has to do with the block reward having frequency. So like I said before, every four years the amount that you get as far as a bitcoin miner, your reward for mining decays by 50%. That is why the majority of the bitcoins have already been mined
but we’re only going to see that final bitcoin,
that 21 millionth bitcoin, mined in the year 2140. That’s a long time from now and I know if you’re sitting
here saying to yourself, wait a second, 1800 bitcoins a day, we only have 21 million total, we’ll hit that a lot sooner than 2140. But you have to remember
that every four years, your reward for being a bitcoin miner decays by 50%. So I drew a very basic example here of what this would look like, what a decay ratio would
look like for this. This isn’t the actual
point that we’re at now. But if you start up here
at the full amount here then you went down 50% after four years and then another four years, another 50%, you can see how that exponential curve gets lower and lower to
the point where you’re almost touching that bottom line. To the point where
bitcoin miners are getting very little reward for
actually facilitating those transactions. And that is why there is a slowing supply of bitcoins going to the market, it’s because that block
reward having frequency. And number five, the main factor
is just supply and demand. The market supply versus
the market demand. So are more people looking to buy bitcoin than sell it or are more people looking to sell it than buy it? It’s just like a stock. If you guys are familiar
with investing in stocks I’m sure you’ll understand
the basic principle of supply and demand. While the underlying value
of something doesn’t change, the price changes frequently. When there’s a demand for that stock or whatever it is, when there’s a demand for
bitcoin and people wanna buy it and there’s not as many people selling it, it’s going to drive the price higher. When there is a low demand
or there is a large supply going to the market, it’s going to drive the price lower because more people are
looking to sell then they are looking to buy. So most of you guys, it comes down to the principles of supply and demand. And the fact that this
is a finite currency. There’s a fixed number
of bitcoins that exist. That is really what determines
the value of bitcoin and that is why so many
people are utterly fascinated by Bitcoin and why a
lot of people are buying and holding Bitcoin as an investment. Now I’m not saying I
recommend you guys do this, personally, I’m not invested in Bitcoin. But I just wanted to share you guys, share this information with you guys in case you were looking
to invest in Bitcoin. Do your own research and make your own investing decisions but there
are a few major concerns with Bitcoin and I’m not
saying that this is how I feel. I’m saying that if you look
at both sides of the table, these are the concerns
people have with Bitcoin. Number one is the lack of regulation and the anonymity. The argument is that because Bitcoin is largely used on the deep web and as a black market currency, there’s concern that if there are enough people using it for things like buying illegal firearms, and I know I said before, people use Fiat currency
to do this all the time. But it seems like Bitcoin
they have a target on their back just because of the media. They get ahold of it and
they start talking about how Bitcoin is being used
for illegal activities. If enough of this is going on, what if our government steps in and forces regulation on this. At that point, what if
there is not the same amount of anonymity? That could defeat the
whole purpose of Bitcoin and the underlying value of these bitcoins could plummet as a result. This is just an argument people have had. Not my personal opinion. Number two, does this abrupt
appreciation in Bitcoin value indicate a speculative bubble? So for those of you who are familiar with the dotcom bubble, when everyone
was buying internet stocks left and right and they were
just flying sky high in value and then we reached a
tipping point where the value was being propped up on
stilts and speculation, and there was nothing backing that value, prices plummeted at that point. There’s a lot of people
who are worried that the value of Bitcoin has
appreciated so rapidly that we’ve reached the
speculative bubble status to the point where this is a bubble that at some point is going to burst and people are going
to lose a lot of money. This is just another argument people have or are concerned with Bitcoin is it really did appreciate in value at a staggering rate. Number three is the fact that Bitcoin really is not a functional currency. And what I mean by this, before you jump down my throat here, is the fact that Bitcoin,
the value is so volatile, there’s no way to ever say okay, if you go to Starbucks, a Starbucks cup of coffee
is going to cost you .0001 bitcoin and I don’t
know the value so I have no idea if that price makes sense. But because bitcoin is so volatile you’ll see multiple percentage
price swings per day, there’s no way to set
a value of something, a physical good, in Bitcoin, because it fluctuates so frequently. So you would have to
consider what that good costs in a Fiat currency and then
what the Bitcoin is valued at based on that Fiat currency, and then basically use that method to be able to buy something. But a clothing store or a coffee shop could never say oh, a coffee
is exactly this amount of money because the
Bitcoin value fluctuates so frequently and it’s very volatile compared to looking at the value of other Fiat currencies. It has drastic price swings. So unless it ever balances out, it can never really be used
as a functional currency as we use Fiat currency today. So the last thing I’m gonna cover is how to invest in Bitcoin. It’s very simple. All you have to do is
physically buy the coins. I know a lot of people have seen like Bitcoin exchanges. I know there is a exchange
traded fund on the stock exchange where you can actually invest in a fund that owns Bitcoins, I would not recommend
that and I talked about this in the last video
I did which I deleted because it was not a good video. But basically the issue
with that is the fact that there’s such a demand
for this exchange traded fund that people are paying almost twice, if not two times the value
of the underlying bitcoins to get exposure to them
through that exchange traded fund so if a bitcoin was $2,000, you would have to spend or
pay $4,000 worth of shares of this ETF in order to
get exposure to $2,000 worth of bitcoin. So that’s just insane especially because it’s
so easy to actually buy physical bitcoins. So if you are someone who wants to invest in Bitcoin, you’ve done your research, you’ve decided this is for me, two ways to do it. Number one is a Bitcoin
buy/sell marketplace. And the one people use is Coinbase. This is, the only problem
with this is the fact that they don’t actually
hold the coins themselves. They basically source the
coins when you go to buy them so if you wanna buy bitcoins
you have to go on Coinbase and basically order those coins and they’re going to
source them from a seller. So the issue with that is
during drastic price moves, there’s low liquidity. So let’s say the bitcoin
was way up in value and you said oh my gosh, I want to, I know most people would say buy, so if you were looking to sell when it was way up in value you probably
wouldn’t have an issue. If you were looking to buy
when it’s way up in value, which is a bad strategy, if you were looking to do that, you might have issues with Coinbase because they have to source those coins and if there are thousands of people trying to buy them at once, they may not be able
to source those coins. Or, if Bitcoins fall drastically in value and people are still
doing the wrong thing, selling while they’re down in value, there may be so many
people trying to sell them at once that there is a bottleneck and there is poor liquidity. If you’re somebody that’s
trying to buy bitcoins, I would recommend using Coinbase because you’re just buying
them and holding them. But if you’re looking to
trade in and out of Bitcoins and trade the price swings, you wanna use a Bitcoin exchange where basically you’re buying and selling to other bitcoin buyers and sellers and the exchange, essentially, just facilitates those
transactions for a fee. So that way you’ll have
much higher liquidity, and you can pretty much
buy and sell as you need to without worrying about having issues with order fulfillment. Anyways, guys, that’s pretty much it. That’s Bitcoin for Beginners. If you guys enjoyed this
video please take a second to drop a like below and
if you have any friends or family members or people
you know who are looking to learn more about Bitcoin, please do not hesitate to
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you for taking the time to watch this video. (peaceful music)

64 thoughts on “BITCOIN FOR BEGINNERS 💰 Watch This BEFORE Investing In Bitcoin!”

  1. actually more and more companies accept bitcoin. in japan it is pretty advanced but even in germany first companies accept bitcoin

  2. In 2140, when there are no more bitcoins to be mined, how does the network continue to check itself?

  3. Bitcoin is getting bad in my opinion just as you said "Supply and Demand" more and more people are getting interested in this virtually currency and the government might just step in and make it illegal due to the media I've heard of another one called ethereum but all of this doesn't really make sense to me this money thing brainwashed the world as you said in the video if we were to buy a loaf of bread from a chunk of gold we couldn't scrape a little piece off of it but still fiat currency is just a trick to the world just a means of exchange because the guy that made the loaf of bread wants something else in exchange and the workers are to be paid also but still, I just don't know what to say about this world that we live in. It's all a TRICK!!!!

    Bitcoin isn't even accepted on most websites. sooner or later it's gonna cost miners more money to get the mining equipment than actual payment for mining.

  4. Just some notes:

    1. You stated that government control the supply of fiat currency, but this isn't entirely correct. Some governments do, but western governments with central banking systems don't…..government only controls interest rates in a broad scale and the banks create money in supply by fractional lending. I know it has nothing to do with bitcoin, but just a small erk.
    2. Fiat currency suffers from inflation problems, no matter how many times humans have created it in history…..it will always get out of hand and a new one has to take its place. Bitcoin partially solves this because a maximum amount, zero-sum currency, is necessary in a closed system (i.e. the Earth).
    3. You didn't mention bitcoin shifters…..basically exchanges that take your bitcoin and shuffle them with other people's bitcoins in order to add some anonymity to your spending. This is the bright side to the currency because it has implications of getting government out of our pockets.
    4. The downside to bitcoin, currently, is that there is no direct fractional lending. The ability to borrow against a note allows for faster and bigger growth in society…..requiring indirect (transferring to a more fluid currency) or exact currency lending (lender to borrower on high risk) weakens the growth rate of the population. For example, borrowing 2 million from the bank to contract 15 houses being built requires only $200,000 to be reserved by the bank on the loan, 1 house easily covers the banks reserve, while creating 15x the leverage of product……requirement of 2 million reserve would mean an expansion rate of only 1.5x, makes the break-even 10 homes, and the possibility of bulk-rate contracting is lessened, which lowers profits, raising risk, and makes it undesirable to investors.

    With the ability for people to create as many wallets as they want, there is no way to administer identity or render credit properly…..even if we assign a "point system" to those wallets that have paid off earlier "loans," people with bad points can simply make new wallets and start over. This makes bitcoin mostly impractical, but if those things ever get solved, I would jump on it IMMEDIATELY.

  5. Hi Ryan i subscribed you due to that Bitcoin video as i was doing research on it. However you have helped me a lot to understand Stock market which i was trying to understand since 3 years. But yes your Bitcoin reaserch is good. Keep it up. God bless you.

  6. Brilliant video, you explained it much better than others. I've been watching bitcoin for some time now and the currency is just too volatile for me to invest for now.

  7. Great video as usual. I just saw last few days and you had 30k and now you have 40k!! Amazing and well deserved!! Your channel blew up and it was just a matter of time before that happened.

  8. 10:03 #3 btc Is illegal in many countries, although these countries cannot control the transactions if you are caught using them you can be sent to prison or jail

  9. bitcoin is not infinity divisible it can be devised 100 mil times at which point it is call 1 btc satoshi which = $0.0000207052

  10. If every four years the amount that miners get decays 50% , then does that mean, in four years, the amount of bitcoins that are mined per day drops to 900, the. 450, 225 and so on?

  11. This boggles my mind. Its not a physical coin, but you can min3 for it? So, its not real, but it is real? Im friggin cornfused. How can u invest in something that isnt real, but supposedly has value? Wtf?

  12. Good beginners guide. I was hoping you would cover bitcoin wallets, what they do, how they work, and a couple of examples!

  13. This is a very interesting presentation, but for me the cons weighs a million times heavier than the pros. Also, why would miners continue mining bitcoin, if they keep getting less rewards? Shouldn't there be some incentive for them? And how much energy and space does those electronic equipment use? Aren't the cost of mining much higher than the income generated?

  14. The closed caption text made it look like he said it is used to buy 1000's of illegal goods. He actually is saying it is used for legal items each, but unfortunately is used to buy illegal goods and services.

  15. FBI and DOJ shut down the Silk Road and arrested the creator because of all the illegal stuff and untaxed marketplace. 🇺🇸 They try to keep a handle on all the mimic sites, but it's a bit much for the DOJ to handle.

  16. I have known about Bitcoin since 2014 and I am finally thinking about investing in bitcoin. I saw it go from $6000to $8500 recently. I want to know people’s opinion me to 2,500 on buying bitcoin and mining it. I want to know other people’s stories in bitcoin mining and investing sites. I just would like some good advice and genuine people to help me out. I hope I motivate all of you who read this to get involved in this. Really great video by the way, this has my mind ready to get involved in the crypto markets

  17. Knowledge is really a power, i invested into Bitcoin and its the best so far. many still don't know about it or are scared to venture into it. scared money never makes any money. If you're looking for a great investment with short time profit then do Bitcoin. Mr Kao who is a reputable figure helps me earn alot from it with his software. text him on whatsapp + 1 573 430 0381. you can start with as little as $10,000 cheers

  18. I first started investing my $50 in buying bitcoin at Paxful and till today it still works, greatly value right now is increasing.

  19. Wow, lengthy video but you were able to explain it, try trading gift cards for bitcoins on Paxful works way better than trading since trading is dependent on its value unlike peer to peers you have the chance to earn all the time.

  20. Have discovered the genuine programmer that hacks bitcoin into wallet no doubt
    I basically gotten 7.3btc from his genuine mining< generator hack you can get in touch with him
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  21. Now is the best time to invest/mine your bitcoin now the price is down and the market value is high, why save your bitcoin? i advice any miner or investor to start investing now rather then losing all your coin, i will show and guide you through the crypto mining investment platform a they are good btc miners,i gain up to 1.5 btc per day and up to $ 6000 from ETH to month.A good business man should know that bitcoin would become very expensive, and now should be the right time to invest, well, Interested parties can contact me for more info [email protected]

  22. Crypto trading has helped a lot of us that were in penury to become financially stable, who says you can't make money off it? I've made quite a lot and I'm going to keep getting paid. thought id just tell the world on youtube that money is good. lol"

  23. I started in crypto with 6 grand and grew my portfolio to $50,000 and this is a major achievement because 6k to 50k is a lot of money for someone who had next to nothing. Bento Feliciano helped me with achieve this because i use his trade patterns as well as signals to trade. A note of caution, it starts with developing a strategy and sticking to it even when the temptation to deviate crops up and Bento also helped me do this. I think its due time we give accolades to those to whim it is due in the crypto space and Mr Bento is one of such few persons. I advise all especially those who are not doing very profitably to find a successful guide like him and seek assistance. If Bento is the man for you too, he can be reached by mail [email protected] and i am certain he will be happy and please tell him a grateful client of his made

  24. Nice video you put up there. Investment as they say is always base on taking the risk but all I can say is investing in the right way will make that risk worth more than gold. Looking at all of the investment angles we can never overlook the massive growth of Bitcoin. Over the past few years Bitcoin has generated more millionaires and even aided more billionaires who invested and trade it to be more successful. Bitcoin can turn around the economy of any nation and the benefits are too numerous to mention. As we aproach the major bull run coming up in this second half of the year I will urge everyone to stock more Bitcoin and if you are lucky to have bought more during the bear period goodluck, but if you are not able to stock more up then there is still time as you can buy the little you can and trade with the help of crypto trader like Mrs. Helena, her strategies in trading Bitcoin work just perfect and I have been able to stock more Bitcoin using her strategies within a short period of time. I urge you to contact [email protected] or via whatsapp: +447427424057 for all your cryptocurrency questions, strategy and beginners coaching and you will be glad you did.

  25. Invest a little and make good money,, i just got my first $10,000 all thanks to ghosthacker50 on instagram,, you are a life saver 🤝

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