*I’m so emotional right now and bee grateful. I didn’t regret dealing with you’re so perfect and competent thanks for the bitcoins I really appreciate*
Do these ATMs have access to your private key? What information is actually being given to the ATM when you present it with a QR-Code? Since Bitcoin is not backed by any bank, what's to stop some thieves from installing an ATM that looks legit and operates legitimately but is in fact storing your information for some future hack where it drains your account? With Bitcoins being stolen fairly often, I would seriously question whether these ATMs aren't playing a role in it as well.
Excellent stuff. I didn't know you could buy this stuff at an ATM! One thing I don't quite understand - is there a finite amount/number of bitcoin which gets moved around from one person to another all the time? Does manufacturing it debase its value like printing conventional money? Who decides its current value?
Great question...the supply of bitcoin in circulation is carefully controlled as follows: (if you watch this video it is mentioned in there ruclips.net/video/pLJQy0B5OKo/видео.html) 1. Each time a new bitcoin BLOCK gets mined and added to the system (and distributed to all the other nodes etc) the miner who successfully mined that block (i.e. found the successful hash value for the block of transactions that met the target) - that miner is permitted to include a special type of transaction in the block he mines, in addition to all the other transactions he wants to include in the block. That transition is called the COINBASE transaction, and it always the first transaction in each block. 2. The COINBASE transaction is one in which the miner of the block assigns a designated amount of bitcoin in the OUTPUT section of the transaction (more on the amount in a second) but does not have to specify any INPUTS to the transaction. Contrast this with all other bitcoin transactions - in which the payer of the bitcoin specifies the recipient's bitcoin address in the OUTPUT section and has to specify in the INPUTS section, references to past transactions (that can be found on the blockchain) in which he himself was the recipient. The latter case can be illustrated by thinking of two successive transactions in a shop with normal coins. If I submit £10 note to the dry cleaner for £7 bill and get £3 in coins in change from a transaction with the dry cleaner, those coins are in my possession as a result of me being one of the transaction outputs for that transaction: Transaction 1 Inputs: (depends on where I got the £10 note from) Outputs: 1) £10 recipient: dry cleaner 2) £3 recipient: me (change) If I then go to a cafe and spend that same £3 coins in my pocket on a latte costing £2.50 then that can be thought of as transaction 2 Transaction 2 Inputs: Transaction 1: Output 2) (£3 change to me from the dry cleaner, the second output as listed above) Outputs: 1) £3 recipient: The coffee shop owner 50p recipient: me (change) I now have a 50p coin in my pocket resulting from transaction 2. and will use that in a future transaction some day If you think of your daily CASH transactions in the shops in terms of the outputs being the payees of the transaction (including change paid back to yourself) and the inputs representing the previous transaction in which you actually acquired that coin or note, then you are well on the way to understanding how bitcoin transactions work. So in terms of your question - about how much bitcoin there is, and if it's finite....the total amount of bitcoin in existence at any one time is analogous to the coin analogy above in that if you were to look at every single CASH based transaction going on in a particular currency, in terms of its inputs and outputs....the total amount of CASH in circulation in that currency (I'm only talking about coins and notes) is....and separate line for this because it's so important: ........the sum total of the values of all transaction OUTPUTS that have not yet been referenced as transaction INPUTS in future transactions.........this is referred to as UNSPENT TRANSACTION OUTPUT (or UTXO) In the two transactions above (dry cleaner and cafe) the £3 output (change) of transaction 1) (dry cleaner) has been referred to (or spent) as the INPUT into transaction 2) (cafe) and is therefore considered spent....HOWEVER, the 50p I got in change from the cafe in transaction 2 is still in my pocket and has not been used yet as the input in any subsequent transaction...therefore this qualifies as UNSPENT TRANSACTION OUTPUT. It's almost identical in the world of bitcoin - the blockchain is really just a huge long list of bitcoin transactions of exactly the above format: Inputs: transaction id: output number: Outputs: recipient address: amount: So any computer can read the blockchain very quickly to get a list of all the transaction outputs that have not yet been used as inputs in subsequent transactions....and THAT is the total amount of bitcoin "in circulation" at any point in time. 3. Back to the coinable transaction - each time a new block is mined, the miner includes this special transaction of the following conceptual format Inputs: NONE: Outputs: recipient address: (miners own address - so he is paying himself) amount: CURRENTLY as of Oct 2016 the amount is 12.5 BTC - the amount half every 210,000 blocks Since on average, a new block is appearing every 10 mins, then bitcoin money supply is currently expanding at approx 12.5 BTC every 10 mins or 1800 BTC / day You can see the growth in amount of bitcoins in circulation on this chart blockchain.info/charts/total-bitcoins - it shows 2 things of note: 1) the total as of 28 Oct 2016 is approx 16,000,000 BTC 2) the gradient of the graph (rate of growth) halves during 2016 - this was when the reward for mining new blocks was adjusted from 25 to 12.5 21 million, and this will occur at some point in 2140 - after that time, the bitcoin money supply will never increase - this raises all the usual debates about deflationary money supply etc which is a whole other story :) Your question as to whether manufacturing it debases its value - thats purely a question of economics - the bitcoin money supply is growing very steadily based on current trends, at about 4%/year (12.5 * 6 * 24 *365) / 16,000,000 - whether that leads to inflation or not in terms of prices paid for goods in bitcoin currency - that depends on other factors like the supply of those goods. Your question about who decides its current value - do you mean in USD/GBP terms? You need to think of bitcoin as a currency just like any other currency - the current price for BITCOIN in GBP which I paid in this video is purely driven by market forces just as if I'd gone to Travelex with that same £10 note and tried to buy Euros with it. Any holder of bitcoin is at liberty to trade that bitcoin in return for any other asset, be it fiat currency like USD/GBP/EUR or coffees.. Does that make sense? Please keep the questions coming
I ain’t feel like this since a long time I’m so happy just to feel like this it took a long time I was really so happy to get the btc into my wallet from you sir just when I thought it’s over for me you came to my aid and save me I will never bee an ungrateful to you
Hi Matt, kindly explain how to respond to the following message "Imported addresses Not backed up by your Recovery Phrase. transferinto a wallet to secure funds". My bitcoin was bought in 2014 and the only information on the wallet is my backup file. Please can you help?
The QR code is generated by the BreadWallet iPhone app (wallet software) - the bitcoin address that my wallet expects to receive bitcoin into is encoded into the QR code - if you download BreadWallet and go to the "receive money" tab, you will see the QR code there
*I’m so emotional right now and bee grateful. I didn’t regret dealing with you’re so perfect and competent thanks for the bitcoins I really appreciate*
I ain’t feel like this since a long time I’m so happy just to feel like this it took a long time I was really so happy to get the btc into my wallet from you sir just when I thought it’s over for me you came to my aid and save me I will never bee an ungrateful to you
*I’m so emotional right now and bee grateful. I didn’t regret dealing with you’re so perfect and competent thanks for the bitcoins I really appreciate*
the music is so magical..
Do these ATMs have access to your private key? What information is actually being given to the ATM when you present it with a QR-Code? Since Bitcoin is not backed by any bank, what's to stop some thieves from installing an ATM that looks legit and operates legitimately but is in fact storing your information for some future hack where it drains your account? With Bitcoins being stolen fairly often, I would seriously question whether these ATMs aren't playing a role in it as well.
U dont give ur private key when u go to a bitcoin ATM
Hey I bought bitcoin from a btc atm but lost my receipt without claiming them is there any way I can get them back?
Excellent stuff. I didn't know you could buy this stuff at an ATM! One thing I don't quite understand - is there a finite amount/number of bitcoin which gets moved around from one person to another all the time? Does manufacturing it debase its value like printing conventional money? Who decides its current value?
Great question...the supply of bitcoin in circulation is carefully controlled as follows: (if you watch this video it is mentioned in there ruclips.net/video/pLJQy0B5OKo/видео.html)
1. Each time a new bitcoin BLOCK gets mined and added to the system (and distributed to all the other nodes etc) the miner who successfully mined that block (i.e. found the successful hash value for the block of transactions that met the target) - that miner is permitted to include a special type of transaction in the block he mines, in addition to all the other transactions he wants to include in the block. That transition is called the COINBASE transaction, and it always the first transaction in each block.
2. The COINBASE transaction is one in which the miner of the block assigns a designated amount of bitcoin in the OUTPUT section of the transaction (more on the amount in a second) but does not have to specify any INPUTS to the transaction. Contrast this with all other bitcoin transactions - in which the payer of the bitcoin specifies the recipient's bitcoin address in the OUTPUT section and has to specify in the INPUTS section, references to past transactions (that can be found on the blockchain) in which he himself was the recipient.
The latter case can be illustrated by thinking of two successive transactions in a shop with normal coins.
If I submit £10 note to the dry cleaner for £7 bill and get £3 in coins in change from a transaction with the dry cleaner, those coins are in my possession as a result of me being one of the transaction outputs for that transaction:
Transaction 1
Inputs:
(depends on where I got the £10 note from)
Outputs:
1) £10 recipient: dry cleaner
2) £3 recipient: me (change)
If I then go to a cafe and spend that same £3 coins in my pocket on a latte costing £2.50 then that can be thought of as transaction 2
Transaction 2
Inputs:
Transaction 1: Output 2) (£3 change to me from the dry cleaner, the second output as listed above)
Outputs:
1) £3 recipient: The coffee shop owner
50p recipient: me (change)
I now have a 50p coin in my pocket resulting from transaction 2. and will use that in a future transaction some day
If you think of your daily CASH transactions in the shops in terms of the outputs being the payees of the transaction (including change paid back to yourself) and the inputs representing the previous transaction in which you actually acquired that coin or note, then you are well on the way to understanding how bitcoin transactions work.
So in terms of your question - about how much bitcoin there is, and if it's finite....the total amount of bitcoin in existence at any one time is analogous to the coin analogy above in that if you were to look at every single CASH based transaction going on in a particular currency, in terms of its inputs and outputs....the total amount of CASH in circulation in that currency (I'm only talking about coins and notes) is....and separate line for this because it's so important:
........the sum total of the values of all transaction OUTPUTS that have not yet been referenced as transaction INPUTS in future transactions.........this is referred to as UNSPENT TRANSACTION OUTPUT (or UTXO)
In the two transactions above (dry cleaner and cafe) the £3 output (change) of transaction 1) (dry cleaner) has been referred to (or spent) as the INPUT into transaction 2) (cafe) and is therefore considered spent....HOWEVER, the 50p I got in change from the cafe in transaction 2 is still in my pocket and has not been used yet as the input in any subsequent transaction...therefore this qualifies as UNSPENT TRANSACTION OUTPUT.
It's almost identical in the world of bitcoin - the blockchain is really just a huge long list of bitcoin transactions of exactly the above format:
Inputs:
transaction id:
output number:
Outputs:
recipient address:
amount:
So any computer can read the blockchain very quickly to get a list of all the transaction outputs that have not yet been used as inputs in subsequent transactions....and THAT is the total amount of bitcoin "in circulation" at any point in time.
3. Back to the coinable transaction - each time a new block is mined, the miner includes this special transaction of the following conceptual format
Inputs:
NONE:
Outputs:
recipient address: (miners own address - so he is paying himself)
amount: CURRENTLY as of Oct 2016 the amount is 12.5 BTC - the amount half every 210,000 blocks
Since on average, a new block is appearing every 10 mins, then bitcoin money supply is currently expanding at approx 12.5 BTC every 10 mins or 1800 BTC / day
You can see the growth in amount of bitcoins in circulation on this chart blockchain.info/charts/total-bitcoins - it shows 2 things of note:
1) the total as of 28 Oct 2016 is approx 16,000,000 BTC
2) the gradient of the graph (rate of growth) halves during 2016 - this was when the reward for mining new blocks was adjusted from 25 to 12.5
21 million, and this will occur at some point in 2140 - after that time, the bitcoin money supply will never increase - this raises all the usual debates about deflationary money supply etc which is a whole other story :)
Your question as to whether manufacturing it debases its value - thats purely a question of economics - the bitcoin money supply is growing very steadily based on current trends, at about 4%/year (12.5 * 6 * 24 *365) / 16,000,000 - whether that leads to inflation or not in terms of prices paid for goods in bitcoin currency - that depends on other factors like the supply of those goods.
Your question about who decides its current value - do you mean in USD/GBP terms? You need to think of bitcoin as a currency just like any other currency - the current price for BITCOIN in GBP which I paid in this video is purely driven by market forces just as if I'd gone to Travelex with that same £10 note and tried to buy Euros with it. Any holder of bitcoin is at liberty to trade that bitcoin in return for any other asset, be it fiat currency like USD/GBP/EUR or coffees..
Does that make sense? Please keep the questions coming
I ain’t feel like this since a long time I’m so happy just to feel like this it took a long time I was really so happy to get the btc into my wallet from you sir just when I thought it’s over for me you came to my aid and save me I will never bee an ungrateful to you
Hi Matt, kindly explain how to respond to the following message "Imported addresses Not backed up by your Recovery Phrase. transferinto a wallet to secure funds". My bitcoin was bought in 2014 and the only information on the wallet is my backup file. Please can you help?
Which beginners have QR code?
ooh wow 1 BTC = 542 GBP :D good times mate.
Will try this
How safe is Bread Wallet? Is it possible for someone to hack this app?
Can't comment on that I'm afraid
How did you get the qr code and where?
The QR code is generated by the BreadWallet iPhone app (wallet software) - the bitcoin address that my wallet expects to receive bitcoin into is encoded into the QR code - if you download BreadWallet and go to the "receive money" tab, you will see the QR code there
*I’m so emotional right now and bee grateful. I didn’t regret dealing with you’re so perfect and competent thanks for the bitcoins I really appreciate*
I ain’t feel like this since a long time I’m so happy just to feel like this it took a long time I was really so happy to get the btc into my wallet from you sir just when I thought it’s over for me you came to my aid and save me I will never bee an ungrateful to you