what is bitcoin the answer to this question has evolved Over time however it is simpler than we think so by the end of this video guide for beginners we will have that Eureka moment where we finally understand what Bitcoin is and its implications for Humanity in the future of our global economy Bitcoin was created as a digital currency back in 2009 by an anonymous person or group of people that goes by the pseudonym Satoshi Nakamoto and over time as awareness of Bitcoin has spread adoption of Bitcoin has increased and as our world continues to drastically change post-pandemic Bitcoin is not simply a digital currency anymore it is becoming a force of nature that needs to be talked about and understood from many different perspectives because there is a financial definition of Bitcoin a philosophical definition social mathematical psychological technological legal geopolitical ideological and cultural definitions of Bitcoin so the easiest way for us to truly grasp and understand Bitcoin in its underlying blockchain technology is to approach it with a sense of openness and creativity because most people have a hard time understanding what Bitcoin is because of how it's misrepresented in Media or because we apply traditional concepts of computers the Internet software Banking and money to a technology that is not a computer the internet software a bank or money and one of the main reasons why it's so important for all of us to take the time to understand what Bitcoin is and spread awareness about it is because most of us don't understand how much power and influence the Global Financial system has over our lives due to not fully understanding how it works in this Mass lack of knowledge about how the Global Financial system works is by Design so to keep the focus of this video guide on cultivating a deeper understanding of what Bitcoin is keep this in mind the entire traditional Financial system is legalized theft that deliberately prevents most people like us from generating accumulating and maintaining wealth and it's all courtesy of the central banks big corporations and governments Bitcoin is a new revolutionary Financial technology that is not controlled or owned by a person entity or Central Authority and Bitcoin presents an opportunity for the first time in human history for us to truly own control and protect our wealth and also for the first time in human history we have access to truly neutral Financial infrastructure hello I'm crypto Casey and now is the perfect time for us to all get curious about Bitcoin getting knowledge about Bitcoin and spread awareness about Bitcoin so we can build a better future for ourselves our families and the World At Large welcome to the ultimate Bitcoin introductory video guide for beginners let's get started [Music] be sure to check out our sponsors nordvpn proton and Ledger secure your data privacy and access to important financial and cryptocurrency accounts from hackers and trackers by using virtual private Network Services provided by nordvpn which we can redeem for a special discount with the links below get a free brand new encrypted email account to use for accessing all of our important financial and cryptocurrency accounts with Services provided by proton which prevents any Hackers from seeing important data and emails if they are successful and changing your password and logging into your account and make sure you are transferring all of your cryptocurrencies and digital assets off of exchanges to hold securely in your very own Cold Storage Hardware wallet like Ledger devices scroll down to access the correct and official sites as well as redeem any special offers they have for us awesome the best way to understand the importance of Bitcoin for our modern world is to First understand how and why the fiat currency the US dollar was designed to benefit a few people and entities while keeping all the rest of us poor fiat currency like the US dollar is a medium of exchange issued backed and enforced by a government no Commodities like gold natural resources or similar back Fiat currencies rather a government just decrees or declares that the currency is legal tender people have to use to transact in their country and throughout history all Fiat currencies that have ever existed eventually went to zero and became worthless so right now we all need to realize that the US dollar is a global fiat currency experiment that likely won't end well it has three Rhymes or repeats itself as it often does so where did it all begin well at a meeting on Jekyll Island in 1913 six of the most powerful men in the United States had a secret meeting on a private island off the coast of Georgia where they created a plan for a new U. S Central Bank which became the world's most powerful bank for over a century now the Federal Reserve and a Central Bank in a nutshell is an institution that can generate Perpetual profits and never sustain any losses it creates money whenever it wants unfairly distributes it to Bankers bureaucrats and big businesses so since Bankers bureaucrats and big businesses receive new money that enters the economy first before everyone else they have massive Financial advantages over us like Arbitrage opportunities to buy assets before prices rise so by the time the money trickles down to us assets are more expensive in this unequal distribution of money is a key driver of injustices in our modern society this phenomenon is known as the Canton effect and if you would like to learn more about it and how it was designed to keep us poor you can check out this video guide by clicking on the link above another key driver of Injustice in our society is the central bank's ability to create as much money as it wants out of thin air via legalized counterfeiting which causes inflation or legalized theft where the money we earn from spending time and energy working becomes diluted and worth less which is all by Design because when money is losing value over time we are incentivized to think and act in the short term rather than the long term which is why since the start of the U. S Global fiat currency experiment obesity rates spiked drug addiction spite suicide rates spiked indebtedness spiked and the central bank's agenda to devalue currency over time to induce more short-term spending in the economy is Amplified and perpetuated by a legal concept called corporate personhood where corporations are allowed to buy politicians to buy favorable legal and Regulatory Frameworks for themselves and by our attention to create a favorable Society through media and advertising for generating profit so basically from birth everything we've been exposed to what we deem as culture what we base our wants needs and goals off of has all been fabricated bought and paid for by corporations that put profits over people and are protected by a government full of politicians that are also bought and paid for that also put profits over people and if you would like to learn more about corporate personhood and why it was the beginning of the end of the society in the United States you can check out this video guide by clicking on the link above cool so when the federal reserve prints money we'll need to outpace inflation which is legalized theft in violation of our property rights with other investments in order to protect our wealth over time and basically the uncomfortable and unfortunate truth about the reality we currently live in is that our rights to life liberty and property are constantly violated by central banks big corporations and the government and everything we think we own is not fully within our control and is constantly at risk a forfeiture the money in our bank accounts the money in our mattresses our houses cars retirement accounts professional licenses and certifications everything with our money specifically we don't have full property rights over it as the central bank can inflate its value away the government can freeze our ability to use it and they can dictate where and whom we can send it to and they can outright take it from us at any time because the entire Global Financial system was socioeconomically structured in a way to favor the few that understand it at the expense of everyone else all of us and we are forced to be a part of this system because it's profitable for the few who run it see in the traditional Financial system when we swipe our bank cards to pay for groceries at the store our bank is taking our money from our account giving it to the grocery store for us and then charging us for it this is the case with checks credit cards debit cards ACH transfers in any exchange of money really and it's so ingrained in our society in the way that we think about money that it seems completely normal and okay for the most part while the only party who benefits from this arrangement is the banks they make a profit from storing transferring controlling and issuing money under the guise that one it's safer there which is not the case and two we aren't smart or qualified enough to manage our own wealth without their services in This Global Central banking system has been the only financial system available to us until now with Bitcoin in its underlying blockchain technology nice now that we understand how the current Global Financial system is designed and works let's contrast it with Bitcoin to fully understand how it was designed and how it works at a deeper level with Bitcoin we can completely own and control value as well as send and receive value directly to anyone around the world anytime and there are technological elements that prevent that value from being inflated away over time so let's break that down together one of the main Hang-Ups people have with understanding Bitcoin is something we've been conditioned to accept from our traditional Financial system which is separation between value and storage or transference of that value see we can have fiat currency like US dollars as something representative of value yet we have to use completely separate mechanisms to actually use it store it and move it around for example you have US Dollars representing value and you have a Bank of America account to store it in and you have maybe an American Express credit card to spend it and maybe even a PayPal account to buy sell and manage it as well this is a concept we are accustomed to because that's all we've known until now with Bitcoin so instead of having fiat currency like US dollars that represent value and paying Financial Services like venmo and JPMorgan Chase to move it around and store it Bitcoin is both value and a means to transfer store and manage that value this is because Bitcoin is both digital value and it's a network that can store and transfer the bits of visual value so value and usage of the value is simply one unified system in the case of Bitcoin Satoshi Nakamoto created bitcoin as a way for people to store and send value around the world anytime anywhere at virtually no cost without using a financial business or fiat currency because our current Financial system is not neutral Financial infrastructure bank accounts and credit cards are luxuries most people around the world don't qualify for don't have access to or simply can't afford and even if you do have bank accounts and credit cards they can be frozen restricted and close at any time without warning and except for each and every holiday known to mankind most banks only operate 9 A.
M to 5 PM on weekdays contrast that with the Bitcoin Network that has been operating flawlessly since its creation back in 2009 using its underlying blockchain technology to maintain perfect records of all Bitcoin wallets and transactions and complete transactions 24 7 365 globally constantly without fail so blockchain is simply a method of record keeping using the same principles that underlie the very fabric of our universe mathematics physics and Science and it does it in such a way that doesn't need third parties like accountants bookkeepers Banks or governments in the most plain and simple way to understand the word blockchain is by separating the word block from the word Chang so imagine a list of transactions showing value sent to and from people getting listed one after the other as they occur then once the maximum amount of transaction data in the list has been reached the list of Records becomes a block of data this block of data is then added behind a previous block of transaction data linked together like with a chain sweet so the word blockchain simply represents groups of transaction data linked together and there are three pillars of blockchain technology that make it unique decentralization transparency and immutability so let's break down each of those pillars together pillar one decentralization the word decentralization in blockchain is twofold one it means that instead of data being stored in one place like one computer in one office data is stored on multiple computers all around the world and two decentralization means that no one person Corporation government Authority or any entity controls any aspect of the data recording and storage process so for example currently we have Central Banking systems controlled by a central Authority who issues fiat currency that can reside in accounts controlled by Bank of America or other similar centralized entities each of these entities are are in complete control over where and how their data is recorded stored and managed they can decide what type of servers to use where the servers are located and how their security protocols work in contrast blockchain allows transaction data management to be decentralized on a network of computers around the world using open source software and any changes to the blockchain protocol have to go through a consensus process to protect the Integrity of the network that no one person company or government has control over so instead of a centralized entity like the IRS deciding how and where all their data is stored on certain servers in certain locations a decentralized blockchain network is distributed on many devices all over the world so that is the essence of the decentralization pillar of blockchain Technology pillar 2 transparency transparency in blockchain describes how transaction data is recorded on a public Ledger that is available for anyone to see this Ledger of transactions is saved on the global network of computers around the world which makes it impossible for the data to be changed or altered and to better understand the value of transparency and data recording storage and management let's compare these two scenarios one currently pretty much 99 of citizens in the United States do not know how every single one of our tax dollars is used we just have to take the government's word for it or Drw our own conclusions from our own experiences or manipulated media stories and even if the government had to show us where every single penny went it would be very easy for them to forge or manipulate any data they chose to share with us since they control their own data and create their own reports so you can see how this scenario is not exactly transparent or trustworthy two let's imagine a different scenario where all U. S citizens had access to a live running Ledger of where every single taxpayer dollar was spent by the government at any moment in time basically everyone could see a full disclosure of how our government is managing our money so you can see how this scenario is more transparent and trustworthy the second pillar of blockchain Technology G pillar 3 immutability immutability means that the data recorded and stored on the blockchain cannot be changed Forge or altered and this is achieved through mathematics physics and computer science more specifically cryptography and blockchain hashing processes so if you would like to learn more about what blockchain is and why it was developed check out my blockchain video guide for beginners by clicking on the link above amazing so to recap blockchain uses math physics and computer science to record and store data in a way that ensures once new data is verified it is unmodifiable it's distributed across a vast network of computers around the world so it's hard to destroy and no one person entity or authority controls the data or network creating a transparent environment and Bitcoin is a use case of this blockchain technology its use being a digital currency that people can use as a form of payment to send to and from each other or hold as a store of value similar to gold and ultimately Bitcoin is the world's first truly neutral Financial Network infrastructure cool so how does Bitcoin work the Bitcoin blockchain is basically a live running Ledger of all the Bitcoin transactions from when it was first created to now and in the future in the structure of the Bitcoin blockchain is a network of computers around the world with Bitcoin software installed on them so each time a Bitcoin transaction occurs that data is transferred throughout the network of computers and computers that maintain the Bitcoin blockchain Network are called nodes these nodes or computers validate Bitcoin transactions add the transactions to their copy of the Bitcoin Ledger and then broadcast The Ledger changes to all of the other computers on the network in the form of a block in each block of transactions has a programmed maximum amount of data it can store so on average every 10 minutes or so a new block of Bitcoin transactions is created validated and published to the Bitcoin blockchain network via a process called mining which is completed by computers called miners so for a new block to be accepted by the Bitcoin Network miners compete with each other using computing power to verify transactions in exchange for mining rewards these mining rewards are in place to incentivize miners to participate in the mining process to ensure the Bitcoin Network continues to be audited secure and essentially maintained miners are rewarded with Bitcoin each time they verify a new block of transactions and Mining rewards are twofold they are a combination of one newly minted Bitcoin that were not previously in circulation and two transaction fees in the form of Bitcoin that were already in circulation so there are existing Bitcoin currently in circulation and there are some Bitcoin not in circulation right now that will be mined and intern circulation in the future until the last Bitcoin is mined because an important characteristic Satoshi Nakamoto programmed at the Bitcoin was a maximum Supply unlike Fiat currencies like the US dollar that do not have a supply cap the total amount of Bitcoin that can ever exist is 21 million Bitcoin and September so she implemented a maximum supply of Bitcoin so it would mirror an inflation rate similar to Gold so at the time of this video about 19 million Bitcoin are in circulation out of the 21 million total Supply in the amount of new Bitcoin entering into circulation via mining rewards is 6. 25 Bitcoin per block about every 10 minutes however this amount of new Bitcoin entering in circulation via mining rewards will divide in half to 3.
125 bitcoin per block about every 10 minutes around March of 2024 because another characteristic Satoshi programmed into Bitcoin are what's called having events having refers to reduction in Bitcoin block rewards issued to minors by half and these block rewards have every 210 000th block which on average turns out to be approximately every four years back in May of 2020 was the most recent having which decreased the block reward from 12. 5 Bitcoin to the current rate of 6. 25 Bitcoin so at the time of this video about 900 new Bitcoin are entering into circulation every day until the next having event making the annual inflation rate of Bitcoin about 1.
8 percent and the advantage of having a fixed Supply is that bitcoin's inflation rate will eventually reach zero once the last Bitcoin is mined currently the last Bitcoin will be mined in the year 2140 which is about 117 years from now in a fixed Supply and high demand creates scarcity which typically increases the value of assets with fixed supplies like gold and can be expected to play out in the case of Bitcoin as well based on its performance in past having events another advantage of a fixed Supply is you don't experience issues like we are experiencing with the US dollar as the currency is devalued infringing on our property rights via legalized theft inflation also unlike the US dollar where it is distributed unequally to Bankers bureaucrats and big businesses that do not necessarily contribute to society proportionally to the amount of money they receive new Bitcoin entering into circulation are distributed to miners proportionally to the amount of work they produce so Bitcoin is equally distributed to miners who are providing value to the Bitcoin economy whereas entities closest to the money printer get the new money first which is not a fair or neutral way of adding US Dollars into circulation as we've previously discussed in this video so considering bitcoin's fixed Supply in its equitable distribution of new Bitcoin that enters into circulation while the purchasing power of the US dollar continues to decrease Bitcoin will increase in purchasing power over time as the available Supply continues to decrease so long as demand remains steady and most likely increases as we've been seeing more and more in these crazy times but what if there's not enough Bitcoin to go around what if 21 million Bitcoin are enough for everyone who wants to use or stored over time well luckily similar to the US dollar Bitcoin is actually divisible so like how the US dollar can be divided into smaller units like quarters nickels dimes and pennies Bitcoin can also be divided here's a chart showing the different denominations of Bitcoin from one unit of Bitcoin all the way to the smallest unit of Bitcoin which are called satoshi's or SATs for sure one Satoshi is 100 millionth of a Bitcoin or Bitcoin to the eighth decimal place which is represented by a decimal followed by seven zeros and then a one at the time of this video One Satoshi is worth less than a US penny so you can see how Bitcoin is actually more divisible than the US dollar and in most other Fiat currencies as well as the smallest denomination of US dollars is a penny representing 1 100 of a dollar while satoshi's represent a whopping 100 millionth of a Bitcoin smaller units of Bitcoin and standard denominations make using Bitcoin much easier as it would be too limited to try and pay for things with one whole Bitcoin unit alone that would be like trying to buy a bottle of water with a gold bar which wouldn't really work Satoshi Nakamoto knew that in order for a currency to work in a society it must be easily broken down into smaller increments so it can easily represent a value equal to any and all good or services available in an economy for exchange and Bitcoin is more than sufficiently divisible as it allows for quadrillions of individual units of satoshi's to be distributed to anyone around the world meaning we don't have to buy one whole Bitcoin rather we can buy just one thousand dollars or 100 or even ten dollars worth of bitcoin so if you would like to buy Bitcoin you need to have accounts with cryptocurrency exchanges that allow you to exchange your country's fiat currency for Bitcoin and other cryptocurrencies in the description area below there is a list of my recommended cryptocurrency exchanges so be sure to use those links to access the correct and official sites to avoid accessing a phishing or hacked site and to redeem any special side of bonuses they have for us all while supporting the channel to store and transfer Bitcoin you need to use Bitcoin wallets and there are several types of Bitcoin wallets and some are more secure than others so if you would like to learn all about cryptocurrency wallets how they work and finally have that Eureka moment about how public addresses private keys and Seed phrases work check out this ultimate beginner's guide by clicking on the link of above and if you hold or plan on holding more than 79 worth of bitcoin that you would be upset about losing on an exchange consider investing in your very own Cold Storage Hardware wallet like ledgers Nano S Plus which starts at 79 Ledger is a popular well-known cryptocurrency wallet provider in the industry offering a variety of wallet products like the affordable Nanos plus the powerful and portable Nano X and their most advanced customizable wallet yet the letter Stacks what's great about Ledger is in addition to their wallet products they have created a powerful and robust ecosystem that allows us to completely own manage store controlled Buy sell swap stake and interact with defined smart contracts with our digital assets all from the safety of our Cold Storage wall devices Ledger devices and Ledger lives ecosystem support thousands of different cryptocurrencies and is extremely easy to use whether you are new or a seasoned investor alike if you would like to check out a walkthrough guide of Ledger live check out this video by clicking on the link above Ledger often runs deals and specials throughout the year available to us using the links below so be sure to scroll down to access Ledger's correct and official site and redeem any discounts they have for us all while supporting the channel cool so as you can see viewing Bitcoin from different perspectives helps us understand the many implications of Bitcoin and blockchain Technology on the future of our Global Financial system and Humanity at large because economically Bitcoin represents a new Innovative asset class that is distinct from traditional assets such as stocks bonds real estate and precious metal it scarcity portability into visibility make it a compelling option for some investors and make it uniquely available to everyone promoting greater inclusion in the investment world and financially Bitcoin is a peer-to-peer Network that allows transactions to be conducted without the need for intermediaries like Banks and other financial service providers philosophically Bitcoin is a new type of currency not controlled by governments or central banks rooted in principles and the desire for Financial Freedom in sovereignty over one's financial affairs promoting greater economic freedom and autonomy for individuals socially Bitcoin is a disruptive technology that is transforming the way we think about money value Financial transactions and investing with potential to democratize access to financial services particularly in countries with weak untrustworthy and non-inclusive financial infrastructures and geopolitically Bitcoin is disrupting traditional Financial systems and challenging the hegemony of global Powers with the potential to undermine traditional Notions of national sovereignty and control over Financial systems by central banks governments and big businesses the use of blockchain-based systems like Bitcoin can promote greater economic integration and cooperation between countries ideally reducing geopolitical conflict and creating greater stability and Trust in the Global Financial economy Bitcoin is a big deal and it's up to us to spread awareness about it with all of our friends families and everyone we care about in order to try and build a better and brighter future for humanity and the World At Large awesome if you would like to learn more about the implications of a U.
