In this video, I want to briefly explain why Bitcoin is so difficult to understand for most people who live in a country where they already have a strong currency.
What is a Bitcoin?
Here is a quick summary of what Bitcoin is…
1. Bitcoin is a money transfer/payment network or system.
2. The currency that is used inside that network is also called Bitcoin.
3. The mathematical rules that govern how money and assets move throughout the Bitcoin network are also called Bitcoin.
The payment network, the currency, and the rules of the network are all called Bitcoin. This is why Bitcoin is so confusing for the uninformed public because the term Bitcoin refers to more then just one “thing”.
In this video, I want to give an analogy and explain why Bitcoin is so difficult for many people to understand especially if it’s someone that lives in a first-world country such as America or in Europe.
In the countries where the currency is very strong such as the the British pound, or the US dollar or the yen or anything like that, it’s very difficult for people to understand the benefits and the value of Bitcoin.
So in this short video, I just want to give an analogy so that it makes it a lot easier for many people to understand what Bitcoin is.
Bitcoin Is Made Up Of Several Parts
That All Have The Same Name.
The confusion in Bitcoin comes from the fact that it is made up of several components, and these components all have the same name.
1. Bitcoin Is A Highway Network:
I like to think of Bitcoin as the highway or the interstate system of a country, the highway or the road networks.
So when you hear about all these bitcoin miners, the people that are out there volunteering their computers to process the Bitcoin transaction and being rewarded for taking the time and the effort to process these transactions…
… imagine that all these volunteer computer hardware that’s currently processing the Bitcoin transactions…
… imagine that as the highway or the roads in your country. Now that’s one component of Bitcoin.
2. The Rules On The Highway Network Are Also Called Bitcoin:
So the next component of Bitcoin are the rules that govern how a pedestrian or a vehicle should traverse or commute on that highway or that road. So that’s the second component of Bitcoin.
3. The Vehicles On The Highway Are Also Called Bitcoins:
The third component of Bitcoin is that I want you to imagine that the vehicles that are traveling on this highway are also called “Bitcoin”.
Things that travel through a regular highway would be called typically called a vehicle, but in the Bitcoin network it’s also called “Bitcoin”.
4. The Businesses Along The Highway Network Are Also Called Bitcoin:
The fourth thing that I want you to imagine is that all the businesses that are lined up and built on the sides of these roads or the sides of these highways such as gas stations, businesses, markets, convenience stores, etc. and things like that are also called bitcoin.
So Bitcoin is not just the actual highway or the network. Bitcoin is also the rules that govern how that highway needs to be traveled by its pedestrians and vehicles and users. And then Bitcoin is also the vehicle that actually travels on that network or that highway. And then fourth, it’s also the businesses.
The businesses in the Bitcoin world would be the different layers that they are going to put on top of the Bitcoin protocol once it’s stabilized and once it’s normalized and once it’s become solid and strong.
The Main Cause Of
Confusion About Bitcoin
So because of that complexity of bitcoin it creates a lot of confusion because if I told you that the highway in your country was called a “vehicle”…
… and then the laws and rules that govern how someone should travel through that highway is also called a “vehicle,”…
… and then the vehicle that actually travels on that highway is called a “vehicle”…
… and the businesses that are lined up on each side of the road or the highway is also called a “vehicle,”…
… then it creates a lot of confusion in most people’s minds.
This is one of the reasons why Bitcoin is so confusing to a lot of people because it’s not just a currency or the vehicle that travels through the Bitcoin network, but it is also the roads and the highways, the rules that govern that road and that highway, and it’s also the businesses that are going to be built on top of that highway as well.
So I hope that this analogy that I used between Bitcoin and the highways and the roads in your country can help you better understand bitcoin so when you hear about the price of Bitcoin going up or going down everyday in the market, just be aware that that’s like saying the price of your vehicle is going up or going down in your country.
The network is still there and the highway is still there and the rules that govern how someone is allowed to travel through that highway is also still there.
That’s why I say that Bitcoin will not go away. It has been invented by Satoshi Nakamoto, the creator of Bitcoin.
The Bitcoin protocol, the Bitcoin rules and the Bitcoin “highway” have all been invented and can not be “uninvented”.
How Bitcoin Is
Currently Being Used
Right now, everyone is just using the Bitcoin “highway” and the Bitcoin rules (that govern how it works) are using it as a currency.
In the media and in the news, everybody talks about Bitcoin as if it’s just a currency like the US dollar or the Japanese yen or like the British pound, but it is much more than that.
When you look at a highway system, there’s also the rules that govern how that highway is to be used, and there’s also the actual concrete highway or the paved highway or the dirt or the stone highway itself.
So that’s what Bitcoin is… a highway network to safely and securely transfer a “digital value”.
I hope that this short video was able to help you explain Bitcoin in a different way that will make it easy for new users of Bitcoin to understand what Bitcoin is, what the network is, and what the rules and the regulations that govern how Bitcoin works so it’s easier to understand and adopt.
If you like this video and it helps you in some way, please leave a comment below. I look forward to seeing you again in the next video.
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