Oddbean new post about login | logout Well I guess I can start with, how does one get discovered? I know there are only 21 million in existence, and “mining” is the process of finding them, but don’t really get what that means. Maybe because I don’t know how to code.
Also, What makes it the “truth”, as someone just replied on one of my posts? Why does bitcoin fix this (everyone here seems to think it fixes everything)? What about it changes the world? What makes it different than every other cryptocurrency (other than the 21m limitation - I think that part makes sense)? Why couldn’t another version of bitcoin just be created, also with a limitation? That may be too many questions to answer :)
Technically speaking, I’ve tried to move bitcoin, even through an exchange, which I know people are opposed to, and found it to be difficult. Don’t think self custody even feels possible for a non-tech person like me.
Okay I’m done. For now.
It’s getting smoother by the year. Self custody through the latest hardware wallets and mobile wallets is pretty smooth. You’re right, though, I don’t think custodial storage will be going away anytime soon, and that keeps getting better, too.
So, a lot of that is just memes. Let’s start with what makes it different: it’s the first, it’s the biggest, it’s the most decentralized. It was also a paradigm shift in technology, allowing for digital scarcity, which can’t be duplicated. When I first started using it, there were maybe 5000 altcoins. Now there are 50,000+. There’s only been one bitcoin, though. Nothing has ever dethroned it, or even come close. As to how it changes the world, there are LOTS of ways. To briefly cover a few… Probably scarce money has never existed before. Its deflationary nature and hard cap completely change how all money previously has worked. The mining itself also pushed our energy usage forward it wild new ways. For mining to be profitable, it needs to use energy a lot cheaper than most people or businesses pay. As such, it has been pushing renewables forward, can be used for load balancing, and works great on otherwise waste energy. It can even help mitigate methane by burning it where it was otherwise vented. Lastly, at least on this list, it takes control of money out of the hands of any government. None can ban it, none can manipulate it. Several have already tried and failed.
I really, truly appreciate your time and this conversation. It’s been very informative. I still don’t think I’m convinced it’s the best, and that I can fully see what everyone sees, but I will definitely take responsibility for some of that. Probably requires a lot more research/reading, and to be honest, I start zoning out when I start reading the long, technical pieces. Thanks for the normie friendly explanations.
Glad to help! I’ve owned bitcoin for 7+ years now, actively reading and learning about it for maybe 6 of those years, and I still feel like I’ll never fully understand it. What I do know, is that I’ve yet to see any of the purported “better tech” out there be able dethrone it. It moves slowly, it evolves slowly, and it is more secure and unhackable than any network on earth.
To put it as simply as possible, tons of computers all over the world are all running calculations attempting to guess the next “block” that contains a reward plus transaction fees. This happens roughly every 10. The more hashing power (energy) you put into the network, the better your chances at being the one that guesses the next block. Every 4 years, that reward is halved until there are no bitcoin left.
Who decides what the reward is? Is that part of the original concept from satoshi? If you find a bitcoin, shouldn’t it be yours?
It’s coded into the software and predetermined. Once the block reward is given, those coins can be spent by whoever got them however they want and are part of the total. Anyone can buy some, and yes, if you somehow find some and transfer it to your wallet, you now own it.
This is where you start losing me, and I feel as though I’m not smart enough. How does a normal, non-tech person acquire bitcoin then, if not through a centralized exchange? Seems as though people here feel those are insecure (and you are still sort of beholden to a company?), but then it’s not for everyone/anyone to find, only extremely technical people and/or companies?