In this 2nd video in the series on “Bitcoin For Non-Technical People“, I want to explain the core component of Bitcoin which makes everything works.
The heart of bitcoin is a “database” of historical information known as a “public ledger“.
In the world of crypto currencies and virtual currencies, the public ledger is often referred to as the “blockchain“.
What is the blockchain?
The block chain is a historical recording of all transactions that has occurred in the bitcoin money transfer and payment network.
When Satoshi Nakamoto invented bitcoin – let me put his name down here because when somebody is this revolutionary, we need to give him credit for it.
Anyway, a lot of people say that they don’t know who he is because nobody knows.
After he invented bitcoin’s public ledger technology, he released it to the world and no one ever heard about him again.
I really don’t care about none of that; all I care about is what it’s going to do to revolutionize and help the other 99% of people that’s on Main Street.
The people on Wall Street are often referred to as the 1%.
By the way, if you are watching this video – the chances are if you’re part of the 1%, you’re probably not going to be watching this video. That’s why I’m not afraid about giving secrets about bitcoin to them.
Let’s just say that we are part of the 99% that’s on Main Street.
Who Is Satoshi Nakamoto?
Apparently, Satoshi Nakamoto – a lot of people say he’s Japanese because the name sounds Japanese, a lot of people say it’s a guy.
I’m just going to go out on a limb and since nobody knows if it’s a guy or a girl, I’m just going to refer to it as a chick because I think that’s way cooler than referring to it as a guy.
A lot of people say only guys can come up with this kind of stuff, but I think in this day and age I think women have the mindset to come up with this stuff, too.
Who’s to say if I’m wrong or I’m right?
Nobody knows who the real identity of Satoshi Nakamoto is so I’m going to refer to it as a chick.
This chick Satoshi Nakamoto, she must have been working inside the banks as somebody that has to deal with security and somebody that has very, very good computer science and mathematical skills otherwise they wouldn’t have come up with some of this stuff.
It has to be somebody that works in the finance and the banking industry.
A lot of people say that Satoshi probably invented bitcoin by accident or by luck.
I refuse to believe that.
I don’t believe that anything that’s revolutionary such as bitcoin ever comes up by accident or by luck.
Like Mark Twain says, “Luck is the marriage of preparation meets opportunity.”
Satoshi had to be somebody that was working as a cryptographer, computer scientist and definitely involved in computer security.
He was a very, very intelligent person.
There is no doubt whatsoever that Satoshi was one smart chick.
She must have worked in the finance industry and saw what happened and what the 1% was doing to suppress and take away power from the 99% that’s on Main Street.
She must have thought about it and she thought about it and she kept thinking…
“What can we do to get rid of these third party people? “
“Why is it possible that we can send messages, emails, text messages, live streaming video and everything across the world to the other side of the world for free, at no cost or anything?”
“Why is it that we have to pay a fee or transaction fee or bank fee to send money from one person to another across the world or across the state lines or cross-country borders?”
That was one of the things that frustrated Satoshi… that the 99% of the people on Main Street have to pay these expensive bank fees to transfer money around the world.
The other thing, too, that was a concern for Satoshi is why is it possible that the banks and the powers that be – the government, the man, the corporation, etc….
However you want to call it, I don’t want to get all “conspiracy theory” in this video…
But, the 1% on Wall Street can look inside the bank ledgers and determine how much money everybody has, how they’re spending that money and everything.
On the other hand however, you and I, as the private people (the 99% that’s on Main Street):
- We cannot view the bank’s ledger.
- We cannot see each other’s account.
- We cannot see the account of what the President’s making.
- How they’re moving money around or what the government is doing.
- What the congressmen are doing and all the rich people are doing?
What Satoshi proposed was that we take the private ledgers in the banks (that was only available to the folks in government or Wall Street) and make it public to everyone.
When we operate under the fiat system (basically the 1% system that’s on Wall Street) what happens is that everybody that you don’t want to look at your account has the ability to look at it.
What I mean by that is that the FBI can look at your bank account.
The CIA, the NSA, Homeland Security, immigration, IRS, the tax people, etc. and everybody that you don’t like in the government has the ability to look at your bank account and all the people that you don’t mind looking at your account cannot look at it (such as family and friends).
What Is A Blockchain?
What Satoshi did – that was insanely brilliant – was that she made the bank ledger public.
That was the first thing that she did.
She made it public so that every transaction that’s in the bitcoin world (network) is public.
So that when you buy anything or make any type of transaction in bitcoin, it is recorded in this public ledger.
In the bitcoin world, this public ledger that records all the bitcoin transactions that’s made between people is referred to as a “block chain”.
The reason why it’s called a block chain is because every 10 minutes all the transactions in the world that happened with bitcoin regardless if somebody in China uses bitcoin to buy or sell anything to somebody in America, in France, in Europe, in South America, in Africa gets recorded.
It doesn’t matter where in the world the transaction occurred, if there’s a transaction that occurs that involves the use of bitcoin, it is recorded in this block of information.
Every 10 minutes all these transactions are compiled and processed and recorded into this bitcoin public ledger.
The bitcoin system was set up so that 10 minutes would allow for all the computers in the world to process and gather the bitcoin transactions together to form the next block of information and add it to the bitcoin public ledger.
In this bitcoin public ledger, new blocks get added roughly every 10 minutes and it goes on and on.
Every 10 minutes you can expect that a new block of data or information that contains all the bitcoin transactions in the world are recorded and it’s on to the next one.
In a separate video, I’ll explain how people are volunteering their computers to process all the bitcoin transactions and information.
For now, I don’t want to get too much into depth about how bitcoins are processed and get you too confused.
How Bitcoin Takes Power
Away From The Central Banks
What’s important to understand is that the bitcoin system is designed to take power away from the central banks and all the big banks on Wall Street and the 1% of the population that it benefits by taking away their primary source of power which is the power to print money at will without ever having to work for it.
When you use bitcoin, you can no longer just print money at will.
There’s only a set number of bitcoins and that’s 21 million.
There’s only going to be ever be 21 million bitcoins ever created and no more.
In a future video, I’ll explain why it’s only 21 million bitcoins and no more.
The second thing is that the 99% of people on Main Street (lke you and I) have to work 9 to 5 everyday to produce an income and money whereas the 1% on Wall Street don’t.
Bitcoin eliminates that disparity and inequality between the rich and poor in society.
It eliminates the 1% from just sitting on their butts doing nothing and getting paid all these millions of dollars.
What Is The Golden Rule?
The other thing, too, is that bitcoin takes away Wall Street’s monopoly on money.
They can no longer control the money and debt in the world.
This is important because whoever has control of the money supply also wields tremendous power in the world.
I think some of you guys may have heard of the “Golden Rule”.
Some people believe that the Golden Rule is to “do unto others as you would have done onto you”
I think that was the version that was out of the bible or something like that.
However, in today’s times, the Golden Rule actually means that “whoever has the gold (money) makes the rules”.
Basically, whoever has the money has the power.
What bitcoin does is it takes away the power from the central banks and all the affiliate banks and take their ability to just print money at random without having to work for it or give value to another human being to get that money.
It takes the power to print money at will away from them so they no longer control the power and it gives it back to the 99% of the people that’s on Main Street.
Bitcoin Does Not
Require A Middleman
The fourth thing is that it takes away the third party or middle man when you need to make a financial transaction.
No longer do you have to waste a portion of your money going to two different 3rd party people just for you to send me money. That’s very, very important.
I hope that this video gave you a good start about the bitcoin public ledger and why it was created.
In the next video, I’m going to talk about the people who are volunteering their computer to process all the bitcoin transactions and why they doing it for “free”.
- Why are these volunteers turning on their computers and jumping in to help process the bitcoin transactions that are being used around the world?
- Why would someone go out of their way to go and do this for free and for nothing?
The next video will explain that.
I hope you enjoyed this video.
If you have any questions or any comments about bitcoin or the tools, technologies, and strategies to help people find freedom in their lives. Just leave a comment below this video and I’ll be happy to answer any questions in a future video.
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Click here to watch part 3.