I want to learn about Bitcoin, but I don’t know where to start!
I am a Bitcoin investor and enthusiast. I’ve made over $100k in crypto in less than 6 months, and I want to give you the bitcoin basics.
First, let’s take a moment to appreciate your bravery in approaching a subject that can be intimidating and feel overwhelming.
Next, let’s make something clear — no one fully understands bitcoin, just as no one could fully understand what the invention of the car meant for the world.
Back in the early 1900s, people used to tell car drivers, “You’re crazy! Why don’t you ride a horse or a carriage? It’s much easier. Cars can’t balance on the road as good as a horse! Where will you get gas? Horses can eat grass that grows anywhere. If you run out of gas, you’ll be stranded.”
(Keep in mind, their roads were made of dirt or cobblestone, there were very few gas stations available, and no one expected that to change.)
Sure, car manufacturers and drivers could understand a car’s engine, but they couldn’t tell doubters what the future held; they just knew the technology was revolutionary. Who could have predicted that a complex series of interstate roadways would be constructed one day? From the asphalt that covered dirt roads, new inventions would spring up. Skateboards, scooters, motorcycles, different sports and entertainment that rely on roads, a public transportation system that would make commuting an option for everyone, and more!
“The internet will fail.”
This was a common headline in the 1990s. Over twenty years later, I’m not sure I’m convinced…
When you approach the topic of Bitcoin, it helps to look at it from the perspective of a new technology that will someday be old. It will take time to fully understand what it is and how to use it since it’s new at the moment. Please have patience with yourself; as you spend more time immersed in the topic, you’ll start to grasp it more and more.
Bitcoin is digital money.
Bitcoin runs on blockchain technology.
Blockchain keeps electronics records of transactions.
An analogy could be that blockchain is the internet, and Bitcoin is a website.
If you want to understand Bitcoin, first, you must understand money and what blockchain accomplishes. Here, I have collected a list of free resources to help you learn the basics of Bitcoin, blockchain, and how “money” works.
In a nutshell, blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is a digital record of transactions that is copied and distributed across a network of computer systems on the blockchain. By distributing the record of transactions through an unlimited number of computer systems that can freely choose to participate, everyone in the world has a ledger of existing money in circulation. This is in opposition to a central bank authority’s current system, which tells you simply what money you have.
Why this matters
Currently, when Lisa sends money from her bank to Bobs, the numbers in the accounts change. -$5 from Lisa, +$5 to Bob. Bob can expect to go to his bank and cash out $5. Although a bank tracks how much money each person has, it does not actually have all the cash-on-hand. In fact, if everyone at this moment wanted to take their money out of the bank, we’d find ourselves in a USA circa 1930s situation— not enough cash to go around. This means the central banks have more money recorded in their books than exists in circulation. In the words of scooby— ruh roh!
On top of that, the currency issued (USD) is not backed by any valuable commodity, it’s just paper.
In 1973, under president Richard Nixon the United States left the gold standard, turning US currency into a fiat currency. Every fiat currency in recorded history has ultimately failed.
Bitcoin Learning Resources:
Videos— under 20 minutes
What is Bitcoin? Bitcoin Explained Simply for Dummies — 99Bitcoins
Blockchain in 7 minutes — Simplilearn
School of Block— Ledger
Blockchain Revolution — TED talks explaining Bitcoin and real-world use
Articles— under 20 minutes
Why Bitcoin Matters — Mark Andreessen
Getting Started with Bitcoin — bitcoin.org
Meltem Demirors on Bitcoin, NFTs, and angel investing (article) — Meltem is an executive at Coinshare, a digital asset investment firm with $4B in assets
Documentaries: 60–90 minutes
“Gold & Dollar” sets the stage for the post-economic crisis world we live in how and why we are facing issues like inflation. They explain in plain English what “money” is, why it simply isn’t possible to raise a family on minimum wage anymore and why young people today are in a never-ending cycle of debt.
When you find out it’s by design, you might be just as infuriated as I am. Watching this made me so upset; it moved me to action. After realizing Bitcoin could be used as a weapon to fight economic inequality, I was hooked.
“The Rise and Rise of Bitcoin” follows Daniel, a 35-year-old programmer from Pittsburgh, living with his wife and three boys. When he first discovered Bitcoin in 2011, it became his obsession. He realized the potential of this technology to change the world. The documentary shows the progression of Bitcoin from a niche programming hobby to a growing international monetary system used by millions of people and all the bumps along the way.
Check them out here:
- Gold & Dollar: How Money Became Worthless | Currencies Explained — Documentary on World Currencies
- The Rise and Rise of Bitcoin — 2014 documentary following the rise of Bitcoin
Did you know BTC was $850 per coin in 2014?
Today, 03/20/21, one bitcoin is worth $59,000.
Articles: 2–4 hours
- Bitcoin: A Peer-to-Peer Electronic Cash System — Satoshi Nakamoto
“A technical description, the Bitcoin white paper was the first document to outline the principles of a cryptographically secured, trustless, peer-to-peer electronic payment system that was fundamentally designed to be transparent and censorship-resistant, as well as put financial control back in the hands of the individual. At that time, the world was gripped by a financial crisis catalyzed by excessive speculation in the financial markets and banks risking millions of dollars worth of depositors’ money. ”— coindesk
- Cryptopedia — Gemini
“Cryptopedia is a platform designed to facilitate that understanding by providing free, high-quality crypto education to the world.” — Gemini
Books: 1–3 days
- Digital Gold — Nathaniel Popper
- The Internet of Money — Andreas Antonopolous
- The Bitcoin Standard — Saifedean Ammous
Depending on your learning style, I highly recommend listening to these via audiobooks. I finished digital gold in 2 days while being able to listen and go about my life.
Digital Gold by Nathanial Popper had me on the edge of my seat. You’ll recognize some of the names from the documentary “The Rise and Rise of Bitcoin.” Digital Gold gives you the history of Bitcoin development that was evolving right under our noses while folks were barely learning how to email and visit a website. As with any new monetary system, there are bumps along the way. Rome wasn’t built in a day, and folks didn’t switch from bartering corn to exchanging gold overnight. To understand the future of Bitcoin, dig into its origins.
The Internet of Money by Andreas Antonopolous is a collection of speeches Andreas has given on Bitcoin. He uses fascinating and hysterical analogies that further clarify Bitcoin in a less technical and relatable way. A great casual listen in the car or making a grilled cheese!
The Bitcoin Standard by Saifedean Ammous This book goes deeper into economic history and theory, explaining how many monetary systems we have today developed over the course of history. As audible describes,” The Bitcoin Standard analyzes the historical context to the rise of bitcoin, the economic properties that have allowed it to grow quickly, and its likely economic, political, and social implications.”
Course: 1–4 weeks
- Bitcoin for Everybody — A free course certification on Bitcoin basics from the Saylor Academy
- 7 Day Bitcoin Crash Course — One email a day, a short and educational crash course offered by 99bitcoins
After spending months absorbing every bit of bitcoin information that I could and having already set up my Bitcoin wallet to purchase Bitcoin, I decided to go one step further when I came across this course offered by the Saylor Academy.
I completed this course and earned a certificate for general Bitcoin knowledge. After my self-education, some parts of this course felt repetitive, but it definitely filled gaps of knowledge such as economic principles and wallet security.
This 5 unit course is totally free. By completing all the units, along with passing the final exam, you will earn a certificate that you can add to LinkedIn!
Here’s an example of what you’ll learn in Unit 4
In Michael Saylor’s tweets he often answers questions or provides context to accusations by legacy financial systems
One common misunderstanding about Bitcoin is its environmental impact. The current media trend is to accuse Bitcoin of excessive energy use, by saying, “Bitcoin’s total electricity consumption is above the Netherlands!” To that I respond with this meme:
Let’s set things straight — I’m not trying to “sell you Bitcoin.”
Imagine the year is 1995, the internet is barely taking off. Amazon, Yahoo, eBay, and Internet Explorer all launch. Hardly anyone knew what a website was, much less an email. The few who did learn about the internet and even had minimal participation are extremely wealthy today.
If I had a penny for every time someone said, “I wish I bought Amazon stock years ago!”
I’m not trying to sell you Bitcoin. No, I’m some nerd telling you, you might regret not learning about the internet — I mean, Bitcoin sooner!
In closing, I hope these resources can help you start somewhere.
Crypto is overwhelming, and you’re not alone. Many people are just starting their journey into the unknown. Nine months ago, I couldn’t tell you what a bitcoin was. Fast forward to today, I’ve made a significant amount of USD off my crypto investments. Now that I understand that this currency could change peoples’ lives, I want to tell the world! I believe we rise together, in the case of Bitcoin, it’s 1000% true.
