If you see comments here about investing or brokers, they are scams. Videos about cryptocurrencies, evidently including ones that are just about the underlying technology/math, are hotbeds for attracting nefarious actors preying on the impressionable. Also, hi! If you’re new to this channel, most of it is about visualizing math. I get it, you probably landed here searching for how BTC works, not to spend your afternoon getting pulled into learning about, say, prime numbers or problem-solving, but if you have a moment take a look at the rest of the channel, you may enjoy what you find.
I'd recommend not just reporting, but also replying to them, explaining to any potential readers how their advertisement is a scam. Commenting is quick, and could save somebody hundreds of dollars! :)
I think the first thing to get down is the notion of decentralized ledgers. An understanding of where the actual bitcoins are in the whole process is vital to understanding what is going on. Everything else is just applying cryptography to deal with the various security problems that these decentralized ledgers would otherwise have.
Most explanations I’ve heard are the same regurgitation of simple analogies with a twist of their own life story but what I want to know is the nuts and bolts of the whole operation. That’s what has been annoying
So first of all, love the vid Just wanted to say from a purely meta kind of standpoint, I really love how this video is put together. Not even just the editing / graphics and what not, but just the way you tell the story. I'm constantly asking questions in my mind and it's like within the next minute or two you provide an answer. I'm definitely studying a lot of your videos to learn how to improve my own content because you do a masterful job at keeping your audience engaged. Fantastic work
Here's the supplemental video about understanding just how big 2^256 is: ruclips.net/video/S9JGmA5_unY/видео.html The basic idea is to get a feel for what 2^32 (about 4 billion) multiplied by itself 8 times feels like, building up to a comically absurd computer that would be needed to break 256-bit security.
Bugsy Archimedes, I know up to... well just search up "Sbiis Saibian Large Number Site" or "Pointless Large Number Stuff" and be AMAZED on how big numbers have been named up to, like it's REALLY big!!!
You have no idea how much I've tried to find an article or video actually explaining how cryptocurrencies work. Everyone else just goes around with analogies. They probably don't understand fully themselves. Thanks man.
6:20 it's not that huge a number giving current computing power. Not to mention there is no global standard any of this is based on. As soon as 256 bit hash collisions come into the public view like it did for SHA-1 just a few years ago the ledger will start suffering from fake transactions. Then you might as well hire people to watch these transactions manually. Maybe get some type of insurance on losses. Then maybe realize that all vulneribilities from the hardware layer to the software layer means you can lose all your money so setup a system to ensure the key exchange is secure, like a network of quantum key exchanges. After all this maybe BitCoin and the like can be safer, you know... *like a bank.*
Erdem Memisyazici I’m pretty sure 52 quintillion hashes per second is slower than the Planck time Bijan gave you (about 10^43 hashes per second, compared to your 5.2*10^19), so you would take even longer.
It's an extremely information dense lecture. You have to watch portions of it again and again to grasp the underlying concepts. But once you've finished it, you feel so damn confident.
Yet this 26min video only scratches the surface. To actually understand the data structure of a transaction, and a block, to understand the stack based scripting language of Bitcoin, and so on, goes way beyond this video.
Heisenberg, Schrodinger and Ohm are in a car They get pulled over. Heisenberg is driving and the cop asks him "Do you know how fast you were going?" "No, but I know exactly where I am" Heisenberg replies. The cop says "You were doing 55 in a 35." Heisenberg throws up his hands and shouts "Great! Now I'm lost!" The cop thinks this is suspicious and orders him to pop open the trunk. He checks it out and says "Do you know you have a dead cat back here?" "We do now, asshole!" shouts Schrodinger. The cop moves to arrest them. Ohm resists.
please make a video on transforms (laplace ,fourier,z- transforms) as these will help many engineering students.Many people take it for granted very little is known about its physical meaning,there are subjects in engineering based on transforms like signals and systems, signal processing, control theory your vedios will surely make a difference in understanding these subjects.
This is the kind of video about blockchain I wanted to watch. Not too confusing for beginners but with a certain level of complexity for already tech familiar audiences. Thank you so much for the video.
You have a natural gift for breaking down complex topics into elementary concepts and rearrange them to make it easy for the ordinary educated person to understand. The graphics is awesome.
I'm old school I spent five minutes shy of two hours writing notes & drawing some of the diagrams to try my best to understand, I'm a home schooled researcher & I'm certainly not academic enough to say I'm a economist. The trust is to place your money & patiently wait - the excitement is watching that initial fee grow. I've never done this before.
@@svenm7264, oh sorry, I though you meant sorcery. I didn't know soccer and philosophy had any relationship, but I do know that what was shown in that video was way over my head.
This video is so good that I have come back to it several times over the years and have shared it directly with over 5 people I know. The value of high-quality education such as this is infinite. Thank you for this amazing contribution!
You can verify the transaction with a RPi, mining is only needed if you want to create blocks, anyone can check if his transaction is in a block or not.
@@theopantamis9184 i know, right? even with incredibly helpful explanations like this video, many people won't move past memes and gut feelings into a deeper understanding.
@@theopantamis9184 I haven't yet understood the video fully so this might be a dumb question: If there are multiple miners trying to put together a block and only one guy is successful in making one (by reaching the right amount of zeros in the hash), doesn't the work performed by all other miners go to waste?
@@vishank7 All of the work is "wasted" in the sense that it doesn't actually do anything useful. Its only purpose is to make it cost time and money to make a new block. As more people start mining, each block requires more effort to mine and gives less reward. It is a lot like gold mining in that way. If you are mining gold, all the digging you do that doesn't lead to finding any new gold is wasted. But usually there is no way to find gold without wasting a lot of time on misses. The more people mine, the deeper you have to go to find new gold, and the less you usually find. The difference between bitcoin mining and gold mining is that gold has some real utility outside of its value as currency, while bitcoins have no other utility. However, most gold ends up locked away in vaults anyway, so I think it's a reasonably good analogy.
To verify requires almost no work, that is to read the block chain to find the transaction. Work is required to validate the transaction, that is to write it to the blockchain. A transaction will typically be written to the blockchain with thousands of others.
I mean, that is an instant subscription from me. I've seen only one video, But I can already tell that author really does his research, knows his subject. Animation is minimalistic yet informative, filled with fun with easy to understand examples. Narration is smooth and friendly. Overall, that's what makes a great educational channel on RUclips. Very well done sir, I am sure You're gonna hit 1m sub till the end of this year!
Hope this channel reaches that amount of subscribes. Even if not, it is definitely amazing in content and form, and shows in a very clear way how "real" math works (which, as we"ve seen here, has many technological applications).
Shytcoin is constantly being hacked and ripped off for hundreds of millions of dollars... absolutely useless stupid trash idea adopted by the dumbest people on errrf
I find the dislikes very interesting. Its like leaving a bad review on an encyclopedia. I don't see any disputes related to the content. Thank you for the true explanation of blockchain. This was undoubtedly a huge effort to research, compile and present. You have earned my sub.
I didn't dislike the video; although I will say as a coder I prefer looking at the SHA256 algorithm, or simply importing it into python environment and playing around with it there. I think this video is complex, despite the calming voice and enjoyable animations; I also think a more lucid imagery of bitcoin can be conveyed by explaining the actual code behind bitcoin.
@@divyangmathur which is foolish, since the algorithm relies on engagement, disliking still shows that you were engaged with the video, thus boosting it in the algorithm
@@fezkhanna6900 You're probably not the intended audience for the videos then, as this is a quite typical 3b1b video. I very much enjoyed it, thanks for reminding me to give it a like :)
I have watched many, MANY, different videos on "what is Bitcoin." This video has been BY FAR the most helpful video. I tip my hat to you my friend, and a job well done.
Sorry to hijack this comment to ask my question, but I'm still kind of confused. Who's giving out the public and private keys? And how does a miner join the network? Like if I wanted to start mining do I need a friend in the network who can connect me? Or is there some bitcoin authority giving out keys and adding them to the network, so they know who to ping if they win the lottery, and so others know the ping them if they've won?
I absolutely loved this video. I love how deep into the nitty gritty you go, no other explanation has gone that far that I've found and the fact that this video is 5 years old is astounding.
After studying blockchain tutorials, Merkle tree, symmetric and asymmetric keys concepts, I finally found this video which put all the pieces of my learning together in one thread and make me understandable complete picture of block chain workflow.
This is legit one of the best educational videos I have ever watched. I am stunned as to how you can concisely summarise all the core parts of a cryptocurrency in under 30 minutes!
I'm surprised Visa is compared to Bitcoin. It makes me believe Alice is only part of the problem. That the real problem is the Enron-esq, pyramid scheme run elsewhere. Ultimately just shifting the problem rather than resolving it.
Great video! My acknowledgement to you for your knowledge on business lesson that helped me understand the market trial with real reason why people get poorer, And How to Avoid this situation
I'm just amazed... satoshi was such a genius. And more amazing is the fact that he/she/they didn't take any credit for this and left it up to the people to decide. Did he predict the value of bitcoin???
@@Sophias I think he believed the potential of the bitcoin and the blockchain technology (well he pretty much invented it) and he mined bitcoin when it was at its initial stage gathering tons of them. Some sources suggest he owns the most BTC eventhough no one knows how much he has.
As someone who is majoring in Computer Science and is planning to go into cybersecurity, the thing about this field that keeps blowing my mind is just how much work has gone into it. There’s so much that’s been built, so much that’s been done, so much to do. This field is VAST, there’s just so much stuff in computer science! Some of it is popular, some of it is revolutionary, some of it is both, most of it is neither. This creation of cryptocurrency was built off of the work of many people over a long period of time, and the explosion of various cryptocurrencies built off of that. Everything builds on everything else, and it just. never. stops. So much stuff is still being made, and it’s basically impossible to keep up with it all.
@@Sophias that Satoshi trying to challenge currencies which runs by the enormous and well established banking system from tiny corner of a forum in internet, at least you know why satoshi disappear when this blows up, I doubt satoshi wants this much fame when satoshi code the program
You do understand that paper money has no intrinsic value exactely like bitcoins right? The only thing that makes paper money valuable is that people believe it has value. If people massively started agreeing that bitcoins have "the same value" as paper money, they EFFECTIVELY WOULD HAVE the same exact value. Are we there yet? Of course not. But that does not change the point.
Chris Barnatt of Explaining Computers does a good layman filled explanation of blockchain which sneaks ahead of this video, as good as this video is, and I'm inclined to put his video first and this a close second as most gaps and question marks are covered with both videos.
*I have always had a deep interest in this and would really love to start from somewhere anywhere actually , I believe this is what our future is all about*
@@Chaycetownson Wow! Amazing 👉Virtualcryptomines৹com👈 full of greatness.thank you.I will reference its many times over I’m sure no one come close to you with all you’ve been doing since we meet, surely coming back for more my life have turn around now.
Hey, um... You can help us both. Wanna mine free crypto, download pi network on your apple or android phone. Use reference code: '*TerraBeing*' Start mining. It has good return in a year or so
I also needed a stock trader to manage my Bitcoin invest I learnt that investing in a brokerage firm to trade for oneself is more profitable than trading alone how true ?
You are a life changer. I am not exaggerating. Absolutely no one can explain complex seeming things simpler than you. You are doing a great service to humanity. Thank you
The amount of thought and work that went into making this topic as easy to understand as possible (which I believe you succeeded in doing) is awe-inspiring. I don't even need to look at other videos of your channel to be confident in subscribing to you. Looking forward to more of your stuff!
this was awesome! I was having trouble on understanding the nodes vs. miners as well as the random number / difficulty adjustment but this totally cleared it up!
Wow. I've been wanting to know how crypto-currencies work for a few years now. I've done a little research here and there, but nothing ever really clicked. Until this video. You explained everything in just enough detail for it to be easy to follow yet still very informative. Amazing video, 3b1b. Keep up the awesome work. :)
@@somerealnews6312 I mean I'm a software engineer and still had to watch it twice to fully get it. Give it a couple of more tries if you're that interested.
I'm surprised someone mentioned mrs Kamilia of UCLA Anderson financial institute, I met her at a conference here in SA, I have been making weekly returns
It's not about ppl being smarter than you. It's who can understand the slight of hand better than others. Remember, currency is about what really doesn't exist. It's just an iou, basically.
@@rosylucas4584 Are you saying its easy to lose money with what appears to be Bitcoin when in fact its a fake website? I'd like to invest but how does anyone trust anything on the internet, when anything can be faked. How can anyone trust anything? There maybe a digital signature with private & public key but whose ledger have we joined? How can I trust your advice when in cyberspace anything & everything is possible?
Bitcoin is the future of crypto and questions traders ask themselves now is if this is the right time to invest? Before jumping to a conclusion I think you should take a look at things first. For the past few days, the price of BTC has been fluctuating which means the market is currently unstable and you can't tell if it is going bearish or bullish. While others still continue to trade without fear of making a loss, Others are being patient. It all depends on the pattern with which you trade and also the source of your signals. I would say trading has been going smoothly for me after accumulating over 3.2 Bitcoin within a month, With the trading strategy given to me by Expert Liza forbes. She method are top notch and profitable. You can reach her on via WhatsApp messenger + 1 9 1 7 3 9 6 3 9 6 6 ......
Starting early is the best way getting ahead to build wealth, investing remains a priority the stock market has plenty of opportunities to a decent payout with the right skill and proper understanding of how the market works.
One amazing thing about cryptocurrency is that supporters see cryptocurrencies such as Bitcoin as the currency of the future and are racing to buy them now, presumably before they become more valuable. I am so glad to have invested in crypto some years back.
@Rebecca Moore Hmm, don't know about that. I would never invest in cryptocurrencies because I have seen no reason at all to trust an income I can neither see nor touch, it is very risky to. If I could get a good reason to change my mind, I think I could give it a trial.
{i} - Incredible returns : Cryptocurrencies have been around for a relatively short time, but so far they can be and have proven to be more profitable than most other investments. They tend to show wide changes in their prices over relatively short periods. {ii} - Simplicity: They are a real sign of the times; both joining and taking part is simple. You do not have to deal with any institutions, sign papers, or visit banks. You simply create an account, get a wallet, and track all your assets with no effort at all. {iii} - Your money is yours alone: With cryptocurrencies, your money is yours only and stays yours forever. You do not rely on financial institutions for holding or transferring it. You do not have to pay their exorbitant fees. In the long run, it can become the basis of a truly open and decentralized economy. By investing now, you can be at the forefront of it all. {iv} - High liquidity: By their very nature, cryptocurrencies have very high liquidity - you can quickly and easily buy and sell them, and the technological organization of trading platforms allows the use of a wide variety of tools and tactics, such as limit-orders (automated buying and selling at a specified price) and algorithm-based trading. {v} - Favorable forecasts: It is a better solution to invest for the long-term - currently, most cryptocurrencies are going through a downward trend, but most forecasts are favorable and show growth within two to five years. And when we say “growth” in relation to cryptocurrencies, it is often explosive.
This is one of my favourite videos, I took so much away from it! Would you be open to doing a similar style of video on the Proof of Stake mechanism that Ethereum will be transitioning to? Keep up the beautiful work.
Every new day, Bitcoin gains support and patronage of more and more politicians, billionaires, finance institutions and institutional investors. Could even surpass the 60k June 2022 forecast.
Very true. Just recently Fidelity said they have been accumulating bitcoin since 2014, then again, it was announced that the SEC will likely heed to calls for BTC approval come 2023. This shows that whales and smart funds are buying bitcoin quietly, but they won't let the public know. It's such a pity that people are worried about btc not reaching a particular price at a given period instead of securing their place in the future with btc.
@@Mcdd7-_-How can someone who is just starting out navigate the crypto space? I don't have the heart to see the bulk of my portfolio go from green to red
@@claradidi7573If you are a beginner, then you definitely need some guide and tips from an experienced investor or a professional. That’s the most ideal way to launch into the market these days.
Imagine having to actually do this in real life on a ledger... "Okay, so I'll just do some _super complex maths..._ " * Five hours later * "Right, now to write down this _super long very specific and vital number..._ " * One hour later * "Now to verify the transactions... using _super complex maths..._ " * Five days later * "Okay, now to check I ran the numbers right-"
Yep. Can't do that of course in a world where computers (or even handheld calculators) exist though. If you make the blockchain calculable by hand, it's going to be trivial to crack with a computer. (unless you can find something that is difficult for a computer to process or which is difficult to code a routine for.)
If someone wants to try it for real, you can use a website like this: www.devglan.com/online-tools/rsa-encryption-decryption *Setup:* - generate your keys - all exchange public keys - safekeeper creates google form linked to a spreadsheet for ledger line submissions, shares in read only mode *To transfer LD:* - think of a random number or word, make sure you haven't used it to do the same transaction before, could use sequential ids or date - encrypt a message with your private key "10/10/2020 send 500 ld to bob" - you are free to add any text there (could just leave a signed note with 0 transfer) - fill out the form with these fields: your random word, your name, your encrypted message You also could have unencrypted fields for the amount and recipient, so you can see it at first glance without decrypting the message having verified it earlier. *To verify a transaction:* Spreadsheet line contains: "10/10/2020", "Alice", "10/10/2020 sending 500ld to Bob", 500ld, Bob - take the encrypted message from the spreadsheet and decrypt it using the public key belonging to Alice (trusted from exchange) - if you are able to decrypt the message using Alice's public key, it must come from her - make sure the ID/date at the beginning of decrypted message matches the ID in the spreadsheet. The spreadsheet should have a formula to check for re-use of IDs, marking transactions invalid. - if you cannot verify it, you can submit a new entry describing the situation, with plaintext obscenities instead of encrypted message
@Kapin Maintaining a ledger is actually easier in real life. The only reason this comes across as complex is due to the cryptography involved to prevent people from cheating by fabricating data. How do people think banks balance out at the end of the day? A bank has a ledger (balance sheet) of all money incoming and outgoing. Other banks have ledgers too of all money incoming and outgoing, which some of the transactions will cross over to another bank's ledger due to their interaction. If a bank conducts an audit, its ledger should balance out. Scenario 1: If the ledger doesn't balance out, that means there was an error input by an employee or money was lost/stolen. At that point, the bank must tally everything. If any physical money was involved from the vault, the vault must be recounted. If the ledger is still short, they'll start the whole process all over again and recount. Eventually an investigation is opened to find out what happened to the money. Scenario 2: If the ledger does balance out, that means there were no errors and all monetary transactions were accounted for. What if a ledger balances out, but only because an employee stole $100 from a vault and wrote down that the $100 was accounted for? This malicious activity can't be hidden for very long because eventually that employee will have to transfer the contents of a vault over to a new owner and it will turn up short, revealing that $100 went missing under the employee's watch. Scenario 3: An entire bank is corrupt, constantly forging ledgers and fabricating financial documentation in order to get everything to balance out after pocketing the stolen money. This malicious activity can't be hidden for very long because any banks perceived to be involved in malicious activities can be audited by an independent third party and occasionally are subject to an independent audit by a third party regardless of whether or not they were suspected of malicious activities. Prior to centralized banking through the creation of the Federal Reserve, individuals bank themselves audited one another. Discrepancies between each bank's ledger through cross-examination, and any discrepancy between an individual bank's ledger and financial documentation(s) identified cheaters. Because of decentralized banking, banks could police each other to prevent cheaters. Post decentralized banking, the entity that audits and polices each bank is the Federal Reserve, which also handles the production of money in the United States. The U.S. treasury is supposed to handle the production of U.S. currency, but what happens instead is the Federal Reserve loans money to the U.S. Treasury who then prints physical U.S. currency. The U.S. Treasury pays back that loan (plus interest) to the Federal Reserve, causing the U.S. Government (or American people) to be placed in perpetual debt. For example, if you start out with 0 dollars and I loan you $1 at 10% interest, you would have to pay me back $1 and 10 cents. However, in order for you to pay back that 10 cents interest, you need me to loan you another $1 at 10% interest, so you again have to pay 10 cents on. The question, since decentralized banking caused banks to police each other by randomly auditing one another and now centralized banking enables the Federal Reserve as the de facto entity to fulfill this role, what entity audits the Federal Reserve to guarantee it doesn't turn corrupt and begin creative accounting? The answer is no one. There is no entity. Now you know why the Federal Reserve, established in 1913, for over 100 years, has never been audited. An audit would unveil all the malicious activities going on in the U.S. banking industry and what's happening with that interest the U.S. Treasury (or American people) are forced to pay. Anyways, the Achilles' Heel for cryptocurrency (something decentralized) other than it being dependent on the Internet (something centralized) is quantum computing. Once developed, a quantum computer would be able to mine any block and would take over the entire blockchain.
this is amazing... how subtly you made us understand the topic of cryptocurrency which is otherwise not possible to find anywhere else. this channel is a hidden gem
23:00 Sincerely, thank you for including this segment in the video. The fact that block rewards and transaction fees are not one and the same is far from trivial and I am astonished by how far down the rabbit hole one must go to find out about this. Again, thank you. You seem to actually give a shit about the things you talk about and that is very refreshing. Cheers
@@masonhunter2748 Instead of Proof-of-Work, which requires complex hashes to be calculated to mine a block, stakers put their funds at stake to validate transactions. It's much more energy efficient and better for the environment.
There's a few questions that I have about how cryptocurrency works that are not addressed in this video, specifically, the costs of transactions and storage: 1.) How much storage space does a ledger take up? If everybody has to have a copy of it, won't it eventually become so big that average consumers won't have hard drives big enough to store it? If so, how would it still be reliable? 2.) How much energy does it cost to actually mine a coin, and how does that cost not offset the value of the mined coin?
@Digi both BTC and Monero also allow for storage and usage of the pruned chain, which is about three times smaller; the mechanism was described in the original whitepaper about BTC by S.N.
I belive most of the finance and banking is invented in such a way to confuse others so they can't avail the benefits (or probably I am too stupid for this right now.)
It could be a hideous question but bare with me Since a country like China owns more than 80% of the mining pools out there with a plethora of hashing power, wouldn't that make their chances of creating a forged fork much higher since most of the computational power is kinda controlled by them? Satoshi Nakamoto wrote the following on his published bitcoin paper: "The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power" Also, he said: "The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes." Doesn't that make the largest pool of CPU/GPU power able to forge the chain?
Technically yes, if one person/group could control >50% of the computational power in the world dedicated to mining they could start producing fake blocks that would be accepted into the chain. However here's a few of the factors that discourage this behaviour: 1. It would cost a huge amount (powerful computers, electricity etc) to have that kind of computational power 2. There is an incentive (block reward, transaction fee) for nodes adding legitimate blocks to the chain, this is only awarded after the block is confirmed (6 more blocks added to that chain iirc) - so generating blocks is profitable for honest nodes, i.e. less motivation to try and cheat the system 3. The inherent value of bitcoin is based a lot on how much people trust it, if fraudulent transactions became commonplace people would trust it less and therefore the value of bitcoin would plummet - so the malicious nodes could give their owners lots of bitcoin, but it wouldn't be worth anything Essentially, when it comes down to brass tax, if you have access to that much computational power, its more beneficial to you to use it to mine bitcoin honestly.
I totally agree. Never got the system and the nitty-gritty of cryptocurrency into my head - until now, watching that video. It's clear now, I even have bit of a sense of what "mining" really is...
@@earnthis1 What is your point ? Yes money is a complicated topic, it is already quite hard to understand who creates fiat money. Yes many people are scammed because some of them are less careful with crypto because they don't get the full implication of it. But Bitcoin is not a scam (crypto can be scam). That said no one asks anyone else to "trust" it. It is even the contrary: you can check everything for yourself by running it and read the code if you want to, you can't do that with fiat money where faith is literally required in its name.
@@itcoinitcoin6777 Wow! Amazing 👉Virtualcryptomines৹com👈 full of greatness.thank you.I will reference its many times over I’m sure no one come close to you with all you’ve been doing since we meet, surely coming back for more my life have turn around now.
Every bitcoin investor right now is just smiling at the price of bitcoin as it held strong and indeed valuable enough to generating good ROI. More persons are gonna become millionaires and we have bitcoin thanks for that
@@oliveralexande6205 :Offcourse, in bitcoin investment suitable risk management is aimed at reducing the loss rate thereby giving you the better chance to win your trade to ensure good ROI
This is such a good video. Can you make a second edition talking about ETH2.0 and its Proof of Stake protocol. That concept in your way of explaining would be very interesting.
As a tech person, I think what has been accomplished with crypto is amazing, but as an economist, I see a problem that I never hear discussed in crypto circles. Investments make terrible currency. Our currency value needs to be stable and predictable over the long term. When people trade in Bitcoin, more often then not they aren't looking for a stable form of currency, rather they are looking to buy low and sell high. For myself, I might invest in a little VC of one type or another, but I would never accept payment in VC because, among other things, I couldn't be sure the value wouldn't plummet any time after I was paid. Think of real currencies like a metro pass. Metro passes are the currency of the metro. When I hold a pass the metro is in debt to me. I am owed a ride on a train. The same idea works for theater tickets, arcade tokens, and another token that can be used to purchase something real and tangible. Why would a company redeem these paper and plastic tokens for things of real and tangible value? Societal laws. What about Government fiat? What is it the promise of? The answer is that anyone who wishes to participate in society and reap the benefits of it has to pay taxes of one form or another. Taxes are enforcible by the state and failure to pay them will result in a loss of currency, property or freedom. So it's not what fiat is redeemable for, but what it prevents that gives it value. Since we all find ourselves in a similar situation, we trade in fiat. So again, I ask anyone, what is crypto the promise of? And please, don't tell me "freedom from government oppression" Give me a real tangible answer, because the way I see it, crypto isn't the promise of anything at all. It is the ultimate Ponzi scheme. However it's spread so wide and so far, it may work in perpetuity. There won't be any big crash, rather it will just circulate around creating winners and losers. There are other substantial problems of replacing government fiat with crypto unless people here believe that crypto will always work alongside government currency. Thoughts?
You can read more about this on Buttcoin community on Reddit. Bitcoin or any other currency right now is just a string of 1 and 0. People don't understand what they are buying exactly. All smart ones understand it's a scam and just riding the wave. The rest don't understand and are easy manipulated. Many people trading Bitcoin are former forex enthusiasts. Some gamblers here and there also. Some poor people who cannot buy anything else and of course smart speculators. I am against this type of scam. It's pure speculation.
@Chris 1983 like I mentioned you are one of the smart speculators. 90 percent of people are not. Its a game basically with a cult like following. As long as new players get in, the show goes on.
Virtual currencies are fiat money. If everyone BELIEVES that it's worth something, then it is. It is no different from bottle caps in the Fallout video games or United States Dollars (RIP Gold Standard). It's somewhat rare, there's a cap on how much can ever exist, and there are willing traders of goods and services for those monies. So long as people are willing to trade their goods and services for bitcoins or any other kinds of coins, then it's real money.
Actually, "astronomically large" is an apt description. 2^256=8^64 < 10^78, which is the estimated lower bound of the number of atoms in the universe. Furthermore, 2^256=16^32 > 10^29, which is roughly the diameter of the observable universe in millimeters.
1. Collective mind of the internet. If you trust democracies, it relies where majority of it's citizens are on average, follow the same culture or in this case policy So as long as 51% of miners aren't under control by a centralized entity. On average, said blockchain is 2. You didn't trust FB at first, but after collective effor (because FB is better than friendster). Eventually, the world in uses it in a whole bunc of things Instead of social media, bitcoin is decentralized money/store of value (Litecoin is sorta same but more faster/quieter, Ethereum is more on if then instructions+blockchain etc. And numerous other competitors) Applications? NFT, Band can start and be supported through code instead of (ponzi-like, record labels where the top musicians subsidizes not so good musicians) Or CSGO lotto but decentralized (not advocating for gambling+gaming items as it could easily get kids involved) And money laundering, even if they get to you. As long as the private key isn't knowable but you. Storing millions of cash with semi known creator or unknown private key is a mob's/terrorist's dream. So is also the dream of people wanting to get their capital on usd but illegal in home shithole country because of geopolitical reasons. (Assuming said country isn't shithole enough to prevent internet connection) Don't get me wrong, it's inefficient/fueled by hype. But it has its uses. Just like fire, with a bit of discipline. We can get the benefits/mitigate risks. Plus, bitcoin isn't king yet, it has competition.
ICOs are usually pyramid schemes. Especially if someone advertises it in a youtube comment section along with links that will give "bonuses". Also, an actual miner will completely destroy a phone so there is no point in draining your battery for mining.
![Twenty One Pilots - The Line (from Arcane Season 2) [Official Audio]](http://i.ytimg.com/vi/XCz7WUotXs8/mqdefault.jpg)
If you see comments here about investing or brokers, they are scams. Videos about cryptocurrencies, evidently including ones that are just about the underlying technology/math, are hotbeds for attracting nefarious actors preying on the impressionable.
Also, hi! If you’re new to this channel, most of it is about visualizing math. I get it, you probably landed here searching for how BTC works, not to spend your afternoon getting pulled into learning about, say, prime numbers or problem-solving, but if you have a moment take a look at the rest of the channel, you may enjoy what you find.
I'd recommend not just reporting, but also replying to them, explaining to any potential readers how their advertisement is a scam. Commenting is quick, and could save somebody hundreds of dollars! :)
Thank you so much Lisa
Wow I’m already seeing scams scrolling through the replies to this lmao.
I appreciate your efforts toward my account, I give it a try but I wasn't regretting it at least
@Eric Martins yeah, you're right
This is the clearest video I’ve ever seen, and I still don’t get it.
Exactly.
I think the first thing to get down is the notion of decentralized ledgers. An understanding of where the actual bitcoins are in the whole process is vital to understanding what is going on. Everything else is just applying cryptography to deal with the various security problems that these decentralized ledgers would otherwise have.
Acctually tho wtf
loki
Most explanations I’ve heard are the same regurgitation of simple analogies with a twist of their own life story but what I want to know is the nuts and bolts of the whole operation. That’s what has been annoying
When he said “I’m looking at you Charlie” I got chills
lol
Pay them back CHARLIE!!!
Charlie, you still owe me $100 😠
Charlie. Pay the man his $100
😒
"I'm still confused, but on a higher level!"
Me too. My confusion is at a much higher level after seeing and grokking this video. So, I'm grateful for that.
that's a really nice way of phrasing things
i searched alot information and already know how it works before watching this video :D
@@themayanksingh i profited alot with it
Confusion is at that level that , it's rare to find someone get it
Literally the best explanation I have ever seen on this subject. Thank you 3B1B.
17:30 block creators
17:51 block reward
18:29 mining
19:10 decentralized consensus
Danke
So first of all, love the vid
Just wanted to say from a purely meta kind of standpoint, I really love how this video is put together. Not even just the editing / graphics and what not, but just the way you tell the story. I'm constantly asking questions in my mind and it's like within the next minute or two you provide an answer. I'm definitely studying a lot of your videos to learn how to improve my own content because you do a masterful job at keeping your audience engaged. Fantastic work
The person above me is a simp
Here's the supplemental video about understanding just how big 2^256 is: ruclips.net/video/S9JGmA5_unY/видео.html
The basic idea is to get a feel for what 2^32 (about 4 billion) multiplied by itself 8 times feels like, building up to a comically absurd computer that would be needed to break 256-bit security.
Do you use bitcoin?
3Blue1Brown Can you link the supplement video?
do computers even support 265 bits?
Though for a quantum computer 2^256 is next to nothing.
Bugsy Archimedes, I know up to... well just search up "Sbiis Saibian Large Number Site" or "Pointless Large Number Stuff" and be AMAZED on how big numbers have been named up to, like it's REALLY big!!!
You have no idea how much I've tried to find an article or video actually explaining how cryptocurrencies work. Everyone else just goes around with analogies. They probably don't understand fully themselves. Thanks man.
6:20 it's not that huge a number giving current computing power. Not to mention there is no global standard any of this is based on. As soon as 256 bit hash collisions come into the public view like it did for SHA-1 just a few years ago the ledger will start suffering from fake transactions. Then you might as well hire people to watch these transactions manually. Maybe get some type of insurance on losses. Then maybe realize that all vulneribilities from the hardware layer to the software layer means you can lose all your money so setup a system to ensure the key exchange is secure, like a network of quantum key exchanges. After all this maybe BitCoin and the like can be safer, you know... *like a bank.*
@@kianasheibani1708 And if you could calculate 52 quintillion hashes per second?
@@erdemmemisyazici3950 I believe you don't really know what you are talking about.
@@andyb6626 Okay.
Erdem Memisyazici I’m pretty sure 52 quintillion hashes per second is slower than the Planck time Bijan gave you (about 10^43 hashes per second, compared to your 5.2*10^19), so you would take even longer.
I cant wait for the english version of this video bro looks really good.
😂😂😂
🤣🤣🤣
☠☠☠
Too much drugs bro
I missed the joke?
It's an extremely information dense lecture. You have to watch portions of it again and again to grasp the underlying concepts. But once you've finished it, you feel so damn confident.
Yet this 26min video only scratches the surface. To actually understand the data structure of a transaction, and a block, to understand the stack based scripting language of Bitcoin, and so on, goes way beyond this video.
I like that Alice, Bob, and Charlies pk's were 01000001, 01000010, and 01000011, which are just A, B, and C in ASCII. Cute.
Nice catch.
Wow how can you be such a computer nerd (i mean as a compliment)
Nice! Did a lot of work with ascii recently but didnt catch it
I knew there'd be something like that
@@en7998 they all have the same start of 010000 you just remember the last digits
Heisenberg, Schrodinger and Ohm are in a car
They get pulled over. Heisenberg is driving and the cop asks him "Do you know how fast you were going?"
"No, but I know exactly where I am" Heisenberg replies.
The cop says "You were doing 55 in a 35." Heisenberg throws up his hands and shouts "Great! Now I'm lost!"
The cop thinks this is suspicious and orders him to pop open the trunk. He checks it out and says "Do you know you have a dead cat back here?"
"We do now, asshole!" shouts Schrodinger.
The cop moves to arrest them. Ohm resists.
underrated
Underrated
No one was expecting this comment, everybody liked it
someone explain
This is more confusing than the actual video wtf
I’m not smart
+
5 years later and I still comeback to this Blockchain explanation to check if my understanding, love it
please make a video on transforms (laplace ,fourier,z- transforms) as these will help many engineering students.Many people take it for granted very little is known about its physical meaning,there are subjects in engineering based on transforms like signals and systems, signal processing, control theory your vedios will surely make a difference in understanding these subjects.
Harsh Shankar +1 to that
Harsh Shankar yes laplace!
+
Yes pls
I need this
"To call it astronomicly large would be giving way too much credit to astonomy."
My new favourite quote :)
No u
@@neelamverma8167 You ruined everything.
Has potential to be a good insult...
As a trained astronomer, I found this hilarious
Make this ur status on AoPS.com
This is the kind of video about blockchain I wanted to watch. Not too confusing for beginners but with a certain level of complexity for already tech familiar audiences. Thank you so much for the video.
Totally !
i have no luck investing, is so frustrating
Even for non math people
You have a natural gift for breaking down complex topics into elementary concepts and rearrange them to make it easy for the ordinary educated person to understand. The graphics is awesome.
I'm old school I spent five minutes shy of two hours writing notes & drawing some of the diagrams to try my best to understand, I'm a home schooled researcher & I'm certainly not academic enough to say I'm a economist. The trust is to place your money & patiently wait - the excitement is watching that initial fee grow. I've never done this before.
this is the ONLY video in the entire world which actually describes what the heck is going on! hats off to your amazing work
Stank
After watching this video, I have finally realized how dumb I really am.
Well the beginning of Socrates' wisdom was realizing the extent of his own ignorance. It's the unpleasant first step.
I'm not sure what sorcery has to do with this.
@@jflight7013 Socrates is an ancient Greek philosopher.
@@svenm7264, oh sorry, I though you meant sorcery. I didn't know soccer and philosophy had any relationship, but I do know that what was shown in that video was way over my head.
@@svenm7264 big difference between ignorance and intelligence
Wow. This was incredibly well illustrated and well done
This video is so good that I have come back to it several times over the years and have shared it directly with over 5 people I know. The value of high-quality education such as this is infinite. Thank you for this amazing contribution!
Agreed!
over five people 🤔 6?
@@greentoolsnyc3985 7 ?
@@adarozer imma just make a wild guess... 8??
5 1/2
"alice sent bob $10? ok let me just run my 1000 rtx 3080s for 10 hours to verify.. yep you're good"
You can verify the transaction with a RPi, mining is only needed if you want to create blocks, anyone can check if his transaction is in a block or not.
@@theopantamis9184 i know, right? even with incredibly helpful explanations like this video, many people won't move past memes and gut feelings into a deeper understanding.
@@theopantamis9184 I haven't yet understood the video fully so this might be a dumb question: If there are multiple miners trying to put together a block and only one guy is successful in making one (by reaching the right amount of zeros in the hash), doesn't the work performed by all other miners go to waste?
@@vishank7 All of the work is "wasted" in the sense that it doesn't actually do anything useful. Its only purpose is to make it cost time and money to make a new block. As more people start mining, each block requires more effort to mine and gives less reward.
It is a lot like gold mining in that way. If you are mining gold, all the digging you do that doesn't lead to finding any new gold is wasted. But usually there is no way to find gold without wasting a lot of time on misses. The more people mine, the deeper you have to go to find new gold, and the less you usually find. The difference between bitcoin mining and gold mining is that gold has some real utility outside of its value as currency, while bitcoins have no other utility. However, most gold ends up locked away in vaults anyway, so I think it's a reasonably good analogy.
To verify requires almost no work, that is to read the block chain to find the transaction. Work is required to validate the transaction, that is to write it to the blockchain. A transaction will typically be written to the blockchain with thousands of others.
I mean, that is an instant subscription from me. I've seen only one video, But I can already tell that author really does his research, knows his subject. Animation is minimalistic yet informative, filled with fun with easy to understand examples. Narration is smooth and friendly. Overall, that's what makes a great educational channel on RUclips. Very well done sir, I am sure You're gonna hit 1m sub till the end of this year!
Kolos he didn’t hit one million but all of that is true.
Hope this channel reaches that amount of subscribes. Even if not, it is definitely amazing in content and form, and shows in a very clear way how "real" math works (which, as we"ve seen here, has many technological applications).
it is almost 3m now
3.04M now
reach her on teIegram
4 years later and this is still the only video I need when looking for explanation for the protocol behind Bitcoin…
ur memory cut in half every 4 years 22:50
@@sososong3438 mine got cut half just after watching this video 🙂
Because Bitcoin is very slow to change. ☺️
Shytcoin is constantly being hacked and ripped off for hundreds of millions of dollars... absolutely useless stupid trash idea adopted by the dumbest people on errrf
the
This video is about to start getting a lot of views.
Bcoz of dogecoin?
Dogecoin commentary via a certain tech reviewer brought me here even though he is emphatically NOT a financial adviser 😂
@@ActiveDodger marquee??😂😂😂
@@ActiveDodger same lol, came after mkbhd video
Why
I like it how you go into the details and don't care how long your videos become. Thanks for not sacrificing details for more short-term viewers.
I find the dislikes very interesting. Its like leaving a bad review on an encyclopedia. I don't see any disputes related to the content.
Thank you for the true explanation of blockchain. This was undoubtedly a huge effort to research, compile and present. You have earned my sub.
It's the competitors .. people making similar content or a video on the same topic
@@divyangmathur haters gonna hate
I didn't dislike the video; although I will say as a coder I prefer looking at the SHA256 algorithm, or simply importing it into python environment and playing around with it there. I think this video is complex, despite the calming voice and enjoyable animations; I also think a more lucid imagery of bitcoin can be conveyed by explaining the actual code behind bitcoin.
@@divyangmathur which is foolish, since the algorithm relies on engagement, disliking still shows that you were engaged with the video, thus boosting it in the algorithm
@@fezkhanna6900 You're probably not the intended audience for the videos then, as this is a quite typical 3b1b video. I very much enjoyed it, thanks for reminding me to give it a like :)
*The future is now , you all need to start somewhere no matter how small*
“A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
― Mark Twain
Oh, didn't see you for a while.
Very true!!
Its been quite a while?
cryptocurrency is the future, Investing in it now will be the wisest thing to do especially with the current rise!!!
@@annabellewood8887 Still too soon to say anything.
@@annabellewood8887 yeah its really profitable!!!
I have watched many, MANY, different videos on "what is Bitcoin." This video has been BY FAR the most helpful video.
I tip my hat to you my friend, and a job well done.
Sorry to hijack this comment to ask my question, but I'm still kind of confused. Who's giving out the public and private keys? And how does a miner join the network? Like if I wanted to start mining do I need a friend in the network who can connect me? Or is there some bitcoin authority giving out keys and adding them to the network, so they know who to ping if they win the lottery, and so others know the ping them if they've won?
I absolutely loved this video. I love how deep into the nitty gritty you go, no other explanation has gone that far that I've found and the fact that this video is 5 years old is astounding.
Okay so it's my 5th time watching this video. Let's hope I understand it this time.
Good for you, keep trying 👏
I'm watching it now for the first time. Wish me luck. 🙂
Lol don’t feel bad I’m trying to learn in slow motion😃😃😃😃😃
What it boils down to is: if you create a new currency you win. All newcomers loose. A ponzi scheme (aka pyramid game).
Please report back when it makes sense.
One of the best channel on YT
DANG...this still went straight over my head.
i know what you mean! i wish i had a brain.....
funniest sh!t ever LMAO
View it again and again, you'll eventually get it.
Love the comment buddy..................started to go over mine 4+minutes in
Lol, Feel the same.
After studying blockchain tutorials, Merkle tree, symmetric and asymmetric keys concepts, I finally found this video which put all the pieces of my learning together in one thread and make me understandable complete picture of block chain workflow.
This is legit one of the best educational videos I have ever watched. I am stunned as to how you can concisely summarise all the core parts of a cryptocurrency in under 30 minutes!
Peercoin 8$ price ?
By far the best animation and explanation I have ever seen on the ledger/block chain. Thanks!
If you really want 👆👆👆👆👆👆to meet up with good profit in Crypto trading 👆 👆👆👆👆
Alice is the one buying all your GTX 30X cards.
😂
I'm surprised Visa is compared to Bitcoin. It makes me believe Alice is only part of the problem. That the real problem is the Enron-esq, pyramid scheme run elsewhere. Ultimately just shifting the problem rather than resolving it.
All of that just because of Bob, trying to scam Alice into paying him a 100$... :(
😂😂😂
You mean RTX
Great video! My acknowledgement to you for your knowledge on business lesson that helped me understand the market trial with real reason why people get poorer, And How to Avoid this situation
Stupendous advice on crypto and passive. Tells it like it is,honest opinion. Only promoting what is working in the market
Sure, This I most say!
in a few months or no time people we definitely be kicking themselves regret for missing the opportunity to buy and dip in
How can one generate a successful tips that can be of Good assistance to be financially free thinking
Please share more details because Most people today have been having a lot of failures in forex and crypto because of poor orientation and on guidance
It's not ignorance friend most people venture into the market heavily without any help to guide them through the process needed
It blows my mind how people were able to come up with this.
I'm just amazed... satoshi was such a genius. And more amazing is the fact that he/she/they didn't take any credit for this and left it up to the people to decide. Did he predict the value of bitcoin???
@@Sophias I think he believed the potential of the bitcoin and the blockchain technology (well he pretty much invented it) and he mined bitcoin when it was at its initial stage gathering tons of them. Some sources suggest he owns the most BTC eventhough no one knows how much he has.
As someone who is majoring in Computer Science and is planning to go into cybersecurity, the thing about this field that keeps blowing my mind is just how much work has gone into it. There’s so much that’s been built, so much that’s been done, so much to do. This field is VAST, there’s just so much stuff in computer science! Some of it is popular, some of it is revolutionary, some of it is both, most of it is neither.
This creation of cryptocurrency was built off of the work of many people over a long period of time, and the explosion of various cryptocurrencies built off of that. Everything builds on everything else, and it just. never. stops. So much stuff is still being made, and it’s basically impossible to keep up with it all.
@@Sophias that Satoshi trying to challenge currencies which runs by the enormous and well established banking system from tiny corner of a forum in internet, at least you know why satoshi disappear when this blows up, I doubt satoshi wants this much fame when satoshi code the program
@@wow5212 no one knows Satoshi, so they don’t know Satoshi’s gender(s), so why assume it’s a man? Patriarchy is one hell of a drug, but please say no.
This is the best explanation I have seen thus far. Am recommending this video to everyone who has asked me how it works.
Someone being clear, thank you.
You do understand that paper money has no intrinsic value exactely like bitcoins right? The only thing that makes paper money valuable is that people believe it has value. If people massively started agreeing that bitcoins have "the same value" as paper money, they EFFECTIVELY WOULD HAVE the same exact value.
Are we there yet? Of course not. But that does not change the point.
Great explanation, thanks. Im sharing it to everyone right now.
so no1?
Chris Barnatt of Explaining Computers does a good layman filled explanation of blockchain which sneaks ahead of this video, as good as this video is, and I'm inclined to put his video first and this a close second as most gaps and question marks are covered with both videos.
Wow that's great. I was like "meh, 25 minutes, that will be a long explanation, I'll try to hang on...", and at the end "already finished???"
*I have always had a deep interest in this and would really love to start from somewhere anywhere actually , I believe this is what our future is all about*
Using *Virtual crypto mines*
@@Chaycetownson Wow! Amazing 👉Virtualcryptomines৹com👈 full of greatness.thank you.I will reference its many times over I’m sure no one come close to you with all you’ve been doing since we meet, surely coming back for more my life have turn around now.
jesus christ stop with these comments
Stop
Every time I tried to read about how cryptocurrencies work, I was frustrated. Now this.. this changes the game.
Hey, um...
You can help us both. Wanna mine free crypto, download pi network on your apple or android phone.
Use reference code: '*TerraBeing*'
Start mining. It has good return in a year or so
I also needed a stock trader to manage my Bitcoin invest I learnt that investing in a brokerage firm to trade for oneself is more profitable than trading alone how true ?
You are a life changer. I am not exaggerating. Absolutely no one can explain complex seeming things simpler than you. You are doing a great service to humanity. Thank you
24hrs hack service on IG, they helped to save my life from debt. Thank you hacksolvent
Yes :D
The amount of thought and work that went into making this topic as easy to understand as possible (which I believe you succeeded in doing) is awe-inspiring. I don't even need to look at other videos of your channel to be confident in subscribing to you. Looking forward to more of your stuff!
this was awesome! I was having trouble on understanding the nodes vs. miners as well as the random number / difficulty adjustment but this totally cleared it up!
Wow. I've been wanting to know how crypto-currencies work for a few years now. I've done a little research here and there, but nothing ever really clicked. Until this video. You explained everything in just enough detail for it to be easy to follow yet still very informative. Amazing video, 3b1b. Keep up the awesome work. :)
@@somerealnews6312 I mean I'm a software engineer and still had to watch it twice to fully get it. Give it a couple of more tries if you're that interested.
This video will be watched a lot again in 2021
Lol
I can smell it already... Lamborghini season
Bitcoin is the future, Investing in it now will be the wisest thing to do especially with the current rise
@Peterson jane she gives very good head as well
@@phoupe158 lol
The amount of work put into these videos is just incredible, down to the last little detail.
Most people venture into crypto currency to be a millionaire meanwhile I just want to be debt Free
Making money is easier buy assets and invest
I'm looking for something to venture into on a short term basis, I have about $6k sitting in my savings, what do you think I should be buying?
@Anderson Sarah I'm new to this crypto investment, any specific guide?
Thank you for sharing 👍, I will write her immediately
I'm surprised someone mentioned mrs Kamilia of UCLA Anderson financial institute, I met her at a conference here in SA, I have been making weekly returns
I am glad there are smarter people out there than me. If it was up to me, we'd all still be living in huts out in the jungles
😂😂
If it were up to me we'd be in tents in our bedrooms😂😂 like children
It's not about ppl being smarter than you. It's who can understand the slight of hand better than others. Remember, currency is about what really doesn't exist. It's just an iou, basically.
made my day
btw: feeling the same
That would probably be better
3Blue1Brown Your videos are incredible, I love them, the truth is you are the best
Sebastian Rene Morales just had an add of cryptocurrency mining
spent 2 hours reading on mining and couldn't understand it,
20 minutes where I all that I need.
were*
@@rosylucas4584 Get lost you stupid bot.
@@rosylucas4584 Are you saying its easy to lose money with what appears to be Bitcoin when in fact its a fake website? I'd like to invest but how does anyone trust anything on the internet, when anything can be faked. How can anyone trust anything? There maybe a digital signature with private & public key but whose ledger have we joined? How can I trust your advice when in cyberspace anything & everything is possible?
@@elysiummaybee Please read my comment to Rosy Lucas.
Guys please introduce me to a genuine company where i can invest
48k reclaim will put bitcoin in a very good position moving forward. The range from 38k-48k seems plausible!
@@chris-pj7rk
Can you make a video similar to this that explains how proof-of-stake works, or would work?
@3blue 1brown warning this is a fake
I only understand the ledger part, the rest I need to figure out.
re-watch the video..it took me 3x to get beyond the ledger part with understanding...
Your not the only one who feels like this😭
I like how the pi symbol can just raise the tail end and we perceive that as frustration
12:14 so many different expressions
Bitcoin is the future of crypto and questions traders ask themselves now is if this is the right time to invest? Before jumping to a conclusion I think you should take a look at things first. For the past few days, the price of BTC has been fluctuating which means the market is currently unstable and you can't tell if it is going bearish or bullish. While others still continue to trade without fear of making a loss, Others are being patient. It all depends on the pattern with which you trade and also the source of your signals. I would say trading has been going smoothly for me after accumulating over 3.2 Bitcoin within a month, With the trading strategy given to me by Expert Liza forbes. She method are top notch and profitable. You can reach her on via WhatsApp messenger + 1 9 1 7 3 9 6 3 9 6 6 ......
It is great pleasure to meet *bandyhacks* on *WhatsApp* on *937-504-0735* I got free BTC from him weekly👊
I mine everyday, and invest all my money into it. Yet every 2-3 months I come back and watch this cause no one else explains it better
Starting early is the best way getting ahead to build wealth, investing remains a priority the stock market has plenty of opportunities to a decent payout with the right skill and proper understanding of how the market works.
Bitcoin has been huge news lately with many people investing in it and seeing a great return on their money.
I am a huge fan of crypto I hold a few coins in my wallet.
I recently bought bitcoin worth of $4,000 and I hope it increases within a short period of time.
I certainly will profit alot at the end of this bull run bitcoin is having now, I invested $10k four months ago.
How does bitcoin investment really works, I'm ready to invest huge in it now.
great video, nice content
Can one actually trade alone depending on his self skill, tried to doing that but made a lot of loss...
It's crystal clear why most people lavish in poverty due to ignorance...
| need a ment0r.
you can reach her, @investwithmagret on TeIegram
On track I'm a living testimony of pr0f magret..,,
This is crisp, well organized, comprehensible. (You are also clear about the fact that it's not by any means a complete description.) Thank you!
Your truly, truly understand bitcoin and the systems in place now to explain this so well and to draw distinctions.
Love your work!
I'm a LOT smarter after watching this video.
Okay. I might not be smarter, but I am more enlightened.
I FEEL a lot smarter. Before watching this, Bitcoin seemed kind of advanced.
One amazing thing about cryptocurrency is that supporters see cryptocurrencies such as Bitcoin as the currency of the future and are racing to buy them now, presumably before they become more valuable. I am so glad to have invested in crypto some years back.
TRUE!!!
For those who see cryptocurrencies such as bitcoin as the currency of the future, it should be noted that a currency needs stability.
@Rebecca Moore Hmm, don't know about that. I would never invest in cryptocurrencies because I have seen no reason at all to trust an income I can neither see nor touch, it is very risky to. If I could get a good reason to change my mind, I think I could give it a trial.
@@greghughes6766 LOL, I see. I would give you 5 brief reasons why crypto is the best investment, why crypto is the future.
{i} - Incredible returns : Cryptocurrencies have been around for a relatively short time, but so far they can be and have proven to be more profitable than most other investments. They tend to show wide changes in their prices over relatively short periods.
{ii} - Simplicity: They are a real sign of the times; both joining and taking part is simple. You do not have to deal with any institutions, sign papers, or visit banks. You simply create an account, get a wallet, and track all your assets with no effort at all.
{iii} - Your money is yours alone: With cryptocurrencies, your money is yours only and stays yours forever. You do not rely on financial institutions for holding or transferring it. You do not have to pay their exorbitant fees. In the long run, it can become the basis of a truly open and decentralized economy. By investing now, you can be at the forefront of it all.
{iv} - High liquidity: By their very nature, cryptocurrencies have very high liquidity - you can quickly and easily buy and sell them, and the technological organization of trading platforms allows the use of a wide variety of tools and tactics, such as limit-orders (automated buying and selling at a specified price) and algorithm-based trading.
{v} - Favorable forecasts: It is a better solution to invest for the long-term - currently, most cryptocurrencies are going through a downward trend, but most forecasts are favorable and show growth within two to five years. And when we say “growth” in relation to cryptocurrencies, it is often explosive.
This video is 'proof of work' indeed.
@@zacharymcdonald6506 read the pinned comment
BUY and Hold Quantumcurrency, first QC is QRL
*Please I need someone here to explain to me how everything works , I have been trying to start and I am finally ready*
I used *virtual crypto mines*
a couple hours later, a desk full of notes and now an actual idea what is going on. Best vid ! thank you my guy !!!!!!!
WW3:SKYFALL
At 3:11 Splitwise: "Woah! We have a startup idea"
This is one of my favourite videos, I took so much away from it! Would you be open to doing a similar style of video on the Proof of Stake mechanism that Ethereum will be transitioning to? Keep up the beautiful work.
Every new day, Bitcoin gains support and patronage of more and more politicians, billionaires, finance institutions and institutional investors. Could even surpass the 60k June 2022 forecast.
Very true. Just recently Fidelity said they have been accumulating bitcoin since 2014, then again, it was announced that the SEC will likely heed to calls for BTC approval come 2023. This shows that whales and smart funds are buying bitcoin quietly, but they won't let the public know. It's such a pity that people are worried about btc not reaching a particular price at a given period instead of securing their place in the future with btc.
@@Mcdd7-_-How can someone who is just starting out navigate the crypto space? I don't have the heart to see the bulk of my portfolio go from green to red
@@claradidi7573If you are a beginner, then you definitely need some guide and tips from an experienced investor or a professional. That’s the most ideal way to launch into the market these days.
digital currency is the future of finance, anybody still in doubt of that isn't in touch of reality.
When you know all of the channel names he shows at 13:01
except for Welch Labs
You should check it out! Stephen Welch does some really great work.
William1234567890123 Cook welch Labs is amazing
Ralf Schmelcher yeah, also I recomend bingewatching his finnished serieses, he uses some annoying cliffhangers from time to time
The Math Illuminati.
It's nice to be a math nerd
It's OK if you don't fully understand the video the first time.
I understood the content after watching it the second time.
@Anthony Marcus SCAM
Imagine having to actually do this in real life on a ledger...
"Okay, so I'll just do some _super complex maths..._ "
* Five hours later *
"Right, now to write down this _super long very specific and vital number..._ "
* One hour later *
"Now to verify the transactions... using _super complex maths..._ "
* Five days later *
"Okay, now to check I ran the numbers right-"
...except that finding one of those special numbers by hand would take millions of years
@@RyanTosh I mean, if the blockchain was implemented for calculation by hand, the hashes would definitely be shorter.
Yep. Can't do that of course in a world where computers (or even handheld calculators) exist though.
If you make the blockchain calculable by hand, it's going to be trivial to crack with a computer. (unless you can find something that is difficult for a computer to process or which is difficult to code a routine for.)
If someone wants to try it for real, you can use a website like this: www.devglan.com/online-tools/rsa-encryption-decryption
*Setup:*
- generate your keys
- all exchange public keys
- safekeeper creates google form linked to a spreadsheet for ledger line submissions, shares in read only mode
*To transfer LD:*
- think of a random number or word, make sure you haven't used it to do the same transaction before, could use sequential ids or date
- encrypt a message with your private key "10/10/2020 send 500 ld to bob" - you are free to add any text there (could just leave a signed note with 0 transfer)
- fill out the form with these fields: your random word, your name, your encrypted message
You also could have unencrypted fields for the amount and recipient, so you can see it at first glance without decrypting the message having verified it earlier.
*To verify a transaction:*
Spreadsheet line contains: "10/10/2020", "Alice", "10/10/2020 sending 500ld to Bob", 500ld, Bob
- take the encrypted message from the spreadsheet and decrypt it using the public key belonging to Alice (trusted from exchange)
- if you are able to decrypt the message using Alice's public key, it must come from her - make sure the ID/date at the beginning of decrypted message matches the ID in the spreadsheet. The spreadsheet should have a formula to check for re-use of IDs, marking transactions invalid.
- if you cannot verify it, you can submit a new entry describing the situation, with plaintext obscenities instead of encrypted message
@Kapin Maintaining a ledger is actually easier in real life. The only reason this comes across as complex is due to the cryptography involved to prevent people from cheating by fabricating data. How do people think banks balance out at the end of the day? A bank has a ledger (balance sheet) of all money incoming and outgoing. Other banks have ledgers too of all money incoming and outgoing, which some of the transactions will cross over to another bank's ledger due to their interaction.
If a bank conducts an audit, its ledger should balance out.
Scenario 1: If the ledger doesn't balance out, that means there was an error input by an employee or money was lost/stolen. At that point, the bank must tally everything. If any physical money was involved from the vault, the vault must be recounted. If the ledger is still short, they'll start the whole process all over again and recount. Eventually an investigation is opened to find out what happened to the money.
Scenario 2: If the ledger does balance out, that means there were no errors and all monetary transactions were accounted for. What if a ledger balances out, but only because an employee stole $100 from a vault and wrote down that the $100 was accounted for? This malicious activity can't be hidden for very long because eventually that employee will have to transfer the contents of a vault over to a new owner and it will turn up short, revealing that $100 went missing under the employee's watch.
Scenario 3: An entire bank is corrupt, constantly forging ledgers and fabricating financial documentation in order to get everything to balance out after pocketing the stolen money. This malicious activity can't be hidden for very long because any banks perceived to be involved in malicious activities can be audited by an independent third party and occasionally are subject to an independent audit by a third party regardless of whether or not they were suspected of malicious activities.
Prior to centralized banking through the creation of the Federal Reserve, individuals bank themselves audited one another. Discrepancies between each bank's ledger through cross-examination, and any discrepancy between an individual bank's ledger and financial documentation(s) identified cheaters. Because of decentralized banking, banks could police each other to prevent cheaters. Post decentralized banking, the entity that audits and polices each bank is the Federal Reserve, which also handles the production of money in the United States. The U.S. treasury is supposed to handle the production of U.S. currency, but what happens instead is the Federal Reserve loans money to the U.S. Treasury who then prints physical U.S. currency. The U.S. Treasury pays back that loan (plus interest) to the Federal Reserve, causing the U.S. Government (or American people) to be placed in perpetual debt. For example, if you start out with 0 dollars and I loan you $1 at 10% interest, you would have to pay me back $1 and 10 cents. However, in order for you to pay back that 10 cents interest, you need me to loan you another $1 at 10% interest, so you again have to pay 10 cents on.
The question, since decentralized banking caused banks to police each other by randomly auditing one another and now centralized banking enables the Federal Reserve as the de facto entity to fulfill this role, what entity audits the Federal Reserve to guarantee it doesn't turn corrupt and begin creative accounting? The answer is no one. There is no entity. Now you know why the Federal Reserve, established in 1913, for over 100 years, has never been audited. An audit would unveil all the malicious activities going on in the U.S. banking industry and what's happening with that interest the U.S. Treasury (or American people) are forced to pay.
Anyways, the Achilles' Heel for cryptocurrency (something decentralized) other than it being dependent on the Internet (something centralized) is quantum computing. Once developed, a quantum computer would be able to mine any block and would take over the entire blockchain.
this is amazing... how subtly you made us understand the topic of cryptocurrency which is otherwise not possible to find anywhere else. this channel is a hidden gem
23:00 Sincerely, thank you for including this segment in the video. The fact that block rewards and transaction fees are not one and the same is far from trivial and I am astonished by how far down the rabbit hole one must go to find out about this. Again, thank you. You seem to actually give a shit about the things you talk about and that is very refreshing. Cheers
You are by far the best explainer of things I have encountered in my life
Is it possible you to make a video about proof-of-stake and delegated proof-of-stake too?
Proof-of-stake?
@@masonhunter2748 Instead of Proof-of-Work, which requires complex hashes to be calculated to mine a block, stakers put their funds at stake to validate transactions. It's much more energy efficient and better for the environment.
@@varunsomashekar6139 How exactly does that work if it's not using computing power? Looking into ADA staking currently
There's a few questions that I have about how cryptocurrency works that are not addressed in this video, specifically, the costs of transactions and storage:
1.) How much storage space does a ledger take up? If everybody has to have a copy of it, won't it eventually become so big that average consumers won't have hard drives big enough to store it? If so, how would it still be reliable?
2.) How much energy does it cost to actually mine a coin, and how does that cost not offset the value of the mined coin?
@Digi both BTC and Monero also allow for storage and usage of the pruned chain, which is about three times smaller; the mechanism was described in the original whitepaper about BTC by S.N.
Imagine inventing something people still can't figure how it works.
I belive most of the finance and banking is invented in such a way to confuse others so they can't avail the benefits (or probably I am too stupid for this right now.)
@@MrNecryptic That's right. Everyone knows how to use smartphone, but not how they work.
@@anomallie my English sucks lol nvm i fixed that
the bible?
your dad left you your so sad and bad gg ez kid
It could be a hideous question but bare with me
Since a country like China owns more than 80% of the mining pools out there with a plethora of hashing power, wouldn't that make their chances of creating a forged fork much higher since most of the computational power is kinda controlled by them?
Satoshi Nakamoto wrote the following on his published bitcoin paper:
"The longest chain not only serves as proof of the sequence of
events witnessed, but proof that it came from the largest pool of CPU power"
Also, he said:
"The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes."
Doesn't that make the largest pool of CPU/GPU power able to forge the chain?
Technically yes, if one person/group could control >50% of the computational power in the world dedicated to mining they could start producing fake blocks that would be accepted into the chain. However here's a few of the factors that discourage this behaviour:
1. It would cost a huge amount (powerful computers, electricity etc) to have that kind of computational power
2. There is an incentive (block reward, transaction fee) for nodes adding legitimate blocks to the chain, this is only awarded after the block is confirmed (6 more blocks added to that chain iirc) - so generating blocks is profitable for honest nodes, i.e. less motivation to try and cheat the system
3. The inherent value of bitcoin is based a lot on how much people trust it, if fraudulent transactions became commonplace people would trust it less and therefore the value of bitcoin would plummet - so the malicious nodes could give their owners lots of bitcoin, but it wouldn't be worth anything
Essentially, when it comes down to brass tax, if you have access to that much computational power, its more beneficial to you to use it to mine bitcoin honestly.
@@matthewtrimby Answering to your 1 point China has already into enough computational power
This was excellent; thank you.
This comment was excellent; thank you.
Charmander Charmander you are not alone, me too.
yep Excellent Peercoin start Rise up :D
I'm new here how can I get more information about it
CryptoBusy +William collins fyi, that is a scam. Don’t contact that number.
I love how you subtly touched P vs. NP in the process:)
This is honestly the best cryptocurrency explanation video that I've watched so far. :)
I totally agree. Never got the system and the nitty-gritty of cryptocurrency into my head - until now, watching that video. It's clear now, I even have bit of a sense of what "mining" really is...
Kudos to all crypto traders!!!
🔱
I keep telling everyone....i see nothing hitting out good future than crypto...
Bitcoin especially is outta this world
@@julietyoung2914 of course...
Would anyone want to argue that?🤷♂️ Its reality even toddlers knows that 😂
Gold and silver are good too... But to be honest crypto rules...
I really tried investing and getting involved in crypto but totally got no idea on that
@@loralindah4356 it actually depends on which you want to get some cash on...
Eth, Btc,Xrp all are crypto coins.
Cryptocurrency is one of these things that reminds me how most of us have absolutely no idea how all the stuff that we use every day actually works
Money in general is one of them :)
@@theopantamis9184 Finally, Someone who gets it
@@theopantamis9184 You don't understand how money in general works?? lol So..trust bitcoin, or whatever??? lololololol
That's why suckers get scammed so easily. The world is confusing kids
@@earnthis1 What is your point ? Yes money is a complicated topic, it is already quite hard to understand who creates fiat money. Yes many people are scammed because some of them are less careful with crypto because they don't get the full implication of it.
But Bitcoin is not a scam (crypto can be scam). That said no one asks anyone else to "trust" it. It is even the contrary: you can check everything for yourself by running it and read the code if you want to, you can't do that with fiat money where faith is literally required in its name.
I am extremely glad I was able to join in when I did , basically the best decision I ever made this year, never been so happy
I used *virtual crypto mines*
*VIRTUAL CRYPTO MINES*
@@itcoinitcoin6777 Wow! Amazing 👉Virtualcryptomines৹com👈 full of greatness.thank you.I will reference its many times over I’m sure no one come close to you with all you’ve been doing since we meet, surely coming back for more my life have turn around now.
Every bitcoin investor right now is just smiling at the price of bitcoin as it held strong and indeed valuable enough to generating good ROI. More persons are gonna become millionaires and we have bitcoin thanks for that
I agree on your opinion man generally I always look out for it to dump so I can purchase some more truly it has come to stay
What's really the idea behind this bitcoin investment anyway, cause all I do is to buy when it falls and sell when it goes high
Relating bitcoin investment to forex trading definitely means there are risk involved and just how do you appropriate risk measures
@@oliveralexande6205 :Offcourse, in bitcoin investment suitable risk management is aimed at reducing the loss rate thereby giving you the better chance to win your trade to ensure good ROI
@@kanhasaatvik4851 you sound like a professional
Finally understand the principles. I've watched a number of videos and even read a book. I'm either a slow learner, this is a great video, or both!
Thank you for your comment on this video, we'll keep helping you make better trade as much as we can.
I need to watch more videos like that until I can understand this, it sounds like obscure and mysterious talk; it's an arkanum
This is such a good video. Can you make a second edition talking about ETH2.0 and its Proof of Stake protocol. That concept in your way of explaining would be very interesting.
As a tech person, I think what has been accomplished with crypto is amazing, but as an economist, I see a problem that I never hear discussed in crypto circles.
Investments make terrible currency.
Our currency value needs to be stable and predictable over the long term. When people trade in Bitcoin, more often then not they aren't looking for a stable form of currency, rather they are looking to buy low and sell high. For myself, I might invest in a little VC of one type or another, but I would never accept payment in VC because, among other things, I couldn't be sure the value wouldn't plummet any time after I was paid.
Think of real currencies like a metro pass. Metro passes are the currency of the metro. When I hold a pass the metro is in debt to me. I am owed a ride on a train. The same idea works for theater tickets, arcade tokens, and another token that can be used to purchase something real and tangible. Why would a company redeem these paper and plastic tokens for things of real and tangible value? Societal laws.
What about Government fiat? What is it the promise of? The answer is that anyone who wishes to participate in society and reap the benefits of it has to pay taxes of one form or another. Taxes are enforcible by the state and failure to pay them will result in a loss of currency, property or freedom.
So it's not what fiat is redeemable for, but what it prevents that gives it value. Since we all find ourselves in a similar situation, we trade in fiat.
So again, I ask anyone, what is crypto the promise of? And please, don't tell me "freedom from government oppression" Give me a real tangible answer, because the way I see it, crypto isn't the promise of anything at all. It is the ultimate Ponzi scheme. However it's spread so wide and so far, it may work in perpetuity. There won't be any big crash, rather it will just circulate around creating winners and losers.
There are other substantial problems of replacing government fiat with crypto unless people here believe that crypto will always work alongside government currency.
Thoughts?
👍
You can read more about this on Buttcoin community on Reddit.
Bitcoin or any other currency right now is just a string of 1 and 0. People don't understand what they are buying exactly.
All smart ones understand it's a scam and just riding the wave. The rest don't understand and are easy manipulated.
Many people trading Bitcoin are former forex enthusiasts. Some gamblers here and there also. Some poor people who cannot buy anything else and of course smart speculators.
I am against this type of scam. It's pure speculation.
@Chris 1983 like I mentioned you are one of the smart speculators.
90 percent of people are not. Its a game basically with a cult like following. As long as new players get in, the show goes on.
Virtual currencies are fiat money. If everyone BELIEVES that it's worth something, then it is. It is no different from bottle caps in the Fallout video games or United States Dollars (RIP Gold Standard). It's somewhat rare, there's a cap on how much can ever exist, and there are willing traders of goods and services for those monies.
So long as people are willing to trade their goods and services for bitcoins or any other kinds of coins, then it's real money.
@alueshen the more traders, the better for the currency.
since traders sell high and buy low, they improve the stability.
"To call it astronomically large, would be giving way too much credit to astronomy", lol
Actually, "astronomically large" is an apt description. 2^256=8^64 < 10^78, which is the estimated lower bound of the number of atoms in the universe. Furthermore, 2^256=16^32 > 10^29, which is roughly the diameter of the observable universe in millimeters.
Or just enough?
I am an astronomy student and I found that sentence otherworldly.
1: what are friends?
2: how do I lose trust in something nonexistent and that I have no trust in in the first place?
Why are you watching 30 minute long videos on something you don't believe in or trust in the first place?
@@garylarkan1306 cuz why not.
1. Collective mind of the internet.
If you trust democracies, it relies where majority of it's citizens are on average, follow the same culture or in this case policy
So as long as 51% of miners aren't under control by a centralized entity.
On average, said blockchain is
2. You didn't trust FB at first, but after collective effor (because FB is better than friendster). Eventually, the world in uses it in a whole bunc of things
Instead of social media, bitcoin is decentralized money/store of value
(Litecoin is sorta same but more faster/quieter, Ethereum is more on if then instructions+blockchain etc. And numerous other competitors)
Applications?
NFT, Band can start and be supported through code instead of (ponzi-like, record labels where the top musicians subsidizes not so good musicians)
Or CSGO lotto but decentralized (not advocating for gambling+gaming items as it could easily get kids involved)
And money laundering, even if they get to you. As long as the private key isn't knowable but you.
Storing millions of cash with semi known creator or unknown private key is a mob's/terrorist's dream.
So is also the dream of people wanting to get their capital on usd but illegal in home shithole country because of geopolitical reasons. (Assuming said country isn't shithole enough to prevent internet connection)
Don't get me wrong, it's inefficient/fueled by hype. But it has its uses.
Just like fire, with a bit of discipline. We can get the benefits/mitigate risks.
Plus, bitcoin isn't king yet, it has competition.
@@NicitoStaAna ima guess you completely missed the joke.
This was well thought out and paced. Very helpful and clear. Thanks.
... And this is how Alice and Bob broke up.
ICOs are usually pyramid schemes. Especially if someone advertises it in a youtube comment section along with links that will give "bonuses". Also, an actual miner will completely destroy a phone so there is no point in draining your battery for mining.
Because of Eve?
Peercoin is 8$ wtf
This was excellent and detailed enough for making sense.
It certainly helps being an IT person, knowing the elements already.
T.h.a.n.k.s f.o.r w.a.t.c.h.i.n.g
F.o.r m.o.r.e g.u.i.d.a.n.c.e
+1...-3...-4...-6...-7...-6...-6...-5...-0...-4...-4
Whatsap..
Thank you for explaining this in such a straightforward and easy to follow manner!
Hey, it's unfa!
@@tilbjornar O hai :D
And without glossing over anything necessary to feel like you really understand it!