indiecryptocoach on Nostr: How do you explain #Bitcoin to people with little or no technology/IT background? You ...
How do you explain #Bitcoin to people with little or no technology/IT background?
You tell them a story of a purchase...
When you want to buy something normally by using your bankcard, this is what happens.
• You give card details to the shop.
• The shop asks the bank if I am good for the money.
• The bank checks its records to see if I have enough in my account.
• If I do, it lets the shop know.
• The bank updates its records to show the movement of money from the account to the shop's account and it takes a fee for the trouble.
• Now, if you wanted to remove the bank from that system, who else would you trust to keep those records and not alter them or cheat in any way?
• I wouldn’t trust any single person in fact.
• But I might trust everyone e.g. a very large group of people.
• The idea is you don't have a central record of transactions, instead, you distribute many many copies of the ledger around the world.
• Each owner of each copy records every transaction.
• So to buy something using cryptocurrency, I give the shop my details, the shop asks all the bookkeepers if I am good for the money.
• The bookkeepers all check their records to see if I have enough.
• If I do they tell the shop and all update their records to show the movement of money.
• So there is no way that a forged transaction can make it in.
• If I try to alter a ledger entry, it won't match all of the other copies.
• And it gets rejected.
• And one of them at random will be given a reward of some newly created cryptocurrency.
• This is how cryptocurrencies work, and remember, all of these bookkeepers, all of these ledgers, there are not actual people, but they are computers.
• Lots of computers.
Thank you BBC, probably the only good BBC video in existence LOL
https://www.youtube.com/watch?v=SzAuB2FG79A
You tell them a story of a purchase...
When you want to buy something normally by using your bankcard, this is what happens.
• You give card details to the shop.
• The shop asks the bank if I am good for the money.
• The bank checks its records to see if I have enough in my account.
• If I do, it lets the shop know.
• The bank updates its records to show the movement of money from the account to the shop's account and it takes a fee for the trouble.
• Now, if you wanted to remove the bank from that system, who else would you trust to keep those records and not alter them or cheat in any way?
• I wouldn’t trust any single person in fact.
• But I might trust everyone e.g. a very large group of people.
• The idea is you don't have a central record of transactions, instead, you distribute many many copies of the ledger around the world.
• Each owner of each copy records every transaction.
• So to buy something using cryptocurrency, I give the shop my details, the shop asks all the bookkeepers if I am good for the money.
• The bookkeepers all check their records to see if I have enough.
• If I do they tell the shop and all update their records to show the movement of money.
• So there is no way that a forged transaction can make it in.
• If I try to alter a ledger entry, it won't match all of the other copies.
• And it gets rejected.
• And one of them at random will be given a reward of some newly created cryptocurrency.
• This is how cryptocurrencies work, and remember, all of these bookkeepers, all of these ledgers, there are not actual people, but they are computers.
• Lots of computers.
Thank you BBC, probably the only good BBC video in existence LOL
https://www.youtube.com/watch?v=SzAuB2FG79A