From 056fda8f164c9bfd1f61a64e6e822967792a96ca Mon Sep 17 00:00:00 2001 From: =?UTF-8?q?Peter=20=C5=A0urda?= Date: Fri, 10 Dec 2021 12:18:30 +0800 Subject: [PATCH] Update --- analogies.md | 38 ++++++++++++++++++---- faq.md | 5 +++ intro.md | 23 +++++++------ memes.md | 9 ------ principles.md | 89 +++++++++++++++++++++++++++++++++++++++++++++++++++ 5 files changed, 138 insertions(+), 26 deletions(-) delete mode 100644 memes.md create mode 100644 principles.md diff --git a/analogies.md b/analogies.md index defeb7b..169eb27 100644 --- a/analogies.md +++ b/analogies.md @@ -1,7 +1,31 @@ -Bitcoin is like digital money -Bitcoin is like digital gold -Bitcoin is like brain -Bitcoin is like a central bank -Bitcoin is like the internet -Bitcoin is like an auditor -Bitcoin is like the economy +# Analogies to help understand bitcoin + +## Bitcoin is like digital money + +This is the most obivious analogy. Bitcoin is a form of value that can is +identified by its digital properties. + +## Bitcoin is like digital gold + +Another often used analogy. Bitcoin is used as a store of value. It is +scarce. It is expensive to produce. It is a commodity, what is Bitcoin isn't +determined by a law or by a contractual arrangement. + +## Bitcoin is like brain + +Similarly as a brain consists of cells, Bitcoin consists of nodes (computers). +The functionality of the brain isn't located in any single cell, but in the +cells working together. Bitcoin's nodes also work together to form Bitcoin. + +## Bitcoin is like a central bank + + + +## Bitcoin is like the internet + + + +## Bitcoin is like an auditor + +## Bitcoin is like the economy + diff --git a/faq.md b/faq.md index 895b760..a79525b 100644 --- a/faq.md +++ b/faq.md @@ -1,9 +1,14 @@ Why Bitcoin and not shitcoin? + +Money tends to have a single winner. People need to be convinced that someone +won't suddenly produce more money, or redistribute existing money. + The Vision + Bitcoin theft: Using bitcoin properly is like using a door lock properly. If you have a door lock on your door but forget to lock, then you can still be burglarized. If you diff --git a/intro.md b/intro.md index 04af337..d2e1203 100644 --- a/intro.md +++ b/intro.md @@ -1,10 +1,13 @@ -Lesson 1: What is Bitcoin like? Using analogies to understand Bitcoin -Lesson 2: The 5 meme principles of Bitcoin. To dos and not to dos -Lesson 3: FAQ -Lesson 4: Using a mobile phone wallet, setup -Lesson 5: Using a mobile phone wallet, recovery -Lesson 6: Using a mobile phone wallet, buying bitcoin -Lesson 7: Using a mobile phone wallet, sending bitcoin -Lesson 8: Using a hardware wallet, setup. -Lesson 9: Using a hardware wallet, buying bitcoin -Lesson 10: Using a hardware wallet, sending bitcoin +# Introduction to Bitcoin + +Lesson 1: [What is Bitcoin like? Using analogies to understand Bitcoin](analogies.md) +Lesson 2: [The 5 meme principles of Bitcoin. To dos and not to dos](principles.md) +Lesson 3: [FAQ](faq.md) +Lesson 4: [Using a mobile phone wallet, setup](bluewallet_setup.md) +Lesson 5: [Using a mobile phone wallet, recovery](bluewallet_recovery.md) +Lesson 6: [Using a mobile phone wallet, buying bitcoin](bluewallet_buying.md) +Lesson 7: [Using a mobile phone wallet, sending bitcoin](bluewallet_sending.md) +Lesson 8: [Using a hardware wallet, setup](ledger_setup.md) +Lesson 9: [Using a hardware wallet, recovery](ledger_recovery.md) +Lesson 10: [Using a hardware wallet, buying bitcoin](ledger_buying.md) +Lesson 11: [Using a hardware wallet, sending bitcoin](ledger_sending.md) diff --git a/memes.md b/memes.md deleted file mode 100644 index 19dbd63..0000000 --- a/memes.md +++ /dev/null @@ -1,9 +0,0 @@ -The five meme principles of Bitcoin - -What to do and what not to do - -1. There's Bitcoin and there's shitcoin -2. Not your keys, not your coins -3. Stacking sats -4. HODL -5. Don't trust, verify diff --git a/principles.md b/principles.md new file mode 100644 index 0000000..83b28a0 --- /dev/null +++ b/principles.md @@ -0,0 +1,89 @@ +# The five meme principles of Bitcoin + +What to do and what not to do + +I picked these memes because they are easy to remember. There are a couple of +others, but these are the most important for beginngers. + +## 1. There's Bitcoin and there's shitcoin + +The vision of Bitcoin is to be the best money there can be. This is achieved +through focus on decentralisation. Without decentralization, someone could +change the rules, make more Bitcoins out of nothing, redistribute other +people's Bitcoins. All the other "shitcoins" have a centralized team of people +who determine the rules. There have been attempts in the past to change the +rules of Bitcoin, and they failed. Changes in Bitcoin take many years to +succeed and are more like optimizations than rule changes. + +Some of these "shitcoins" are interesting from techological point of view, but +they aren't suitable as money. Don't buy them, don't trade them. The best thing +you can do is to educate yourself more about Bitcoin. + +## 2. Not your keys, not your coins + +The Bitcoin balances are controlled by cryptographic signatures. This is what +Bitcoin **is**, a collection of crypographic signatures (and some other +things). In order to transfer Bitcoin, you need to perform this cryptographic +signature and for that you need to have piece of data called "private key". In +other words, having the private key **means** having Bitcoin. If you use a +custodial service (third party) for handling your Bitcoin, like a bank or an +exchange, it's **they** that have Bitcoins, not you. You're introducing the +trust in this third party into your relationship with Bitcoin. You're +re-introducing one of the main problems that Bitcoin is solving. For a wide +number of reasons, the custodian can refuse to do what you tell them. In fact, +many don't even allow you to withdraw or send Bitcoins on your behalf. They may +even lose them, as has often happened in the past. + +With Bitcoin, you can self-custody. This requires some learning and some +practice, but you can't get the full benefits without this. You need to keep +your private key private. Anyone who sees it can take your Bitcoins. If you +show it to somebody, they are gone. The private key needs to be protected +against thieves, but also against damage. If the private key is damaged and +it's the only copy, the Bitcoins are gone. Many people have been suffered +losses by not taking proper care of their private keys, and probably many still +will. + +There is a variety of solutions that help, I'll demonstrate a couple in later +videos. + +## 3. Stacking sats + +An easy way to get accustomed with Bitcoin is to accumulate Bitcoin +periodically for the long run, commonly known as "Dollar Cost Averaging". Pick +an amount that you feel comfortable with putting aside, such as hundred dollars +a month. Then, every month, preferably on the same day, buy 100 dollars' worth +of Bitcoin, or Satoshis (sats). Satoshi is 1/10.000.000 of Bitcoin, the base +unit. + +The advantages of this approach are that it's repetitive, so you'll learn it by +practice. It's simple, so you don't need to perform a lot of mental work. It +doesn't depend on the market conditions, so you don't need to worry about +understanding them. It doesn't depend on having trading experience, so you +won't be influenced by psychology. It is working in small steps, so if you make +a mistake (and this can happen for beginners), your losses will be small. + +Don't daytrade, you don't understand how trading works, you'll lose money. + +## 4. HODL + +- selling has a number of disadvantages, so you should avoid it +- during downturn, you may lose money +- selling may incur taxes +- selling may create problems with banks + +- what to do instead? +- do nothing +- sell a small amount, whatever you urgently need +- if you need to pay for something or send a gift, maybe sending Bitcoin + directly without sell would work +- try to get a loan using Bitcoin as a collateral + +## 5. Don't trust, verify + +- even if you have a private key, that alone doesn't tell you how many Bitcoins + you have. For this you need to connect to a node and query it. But the node +could lie to you and trick you. +- you can run your own node, then you can verify the balances yourself +- this is a bit more complicated and takes more effort than the other steps, + and isn't as big a danger, so perhaps it isn't necessary that every person +runs their own node, but maybe there can be one in a family or something like that