Bitcoin’s really not that complicated

Bitcoin made it to US TV this week: as a comedy skit on late-night show ‘Conan’. The skit is very funny: a training video that pokes fun at the difficulty in understanding Bitcoin, which “may be too much for our puny minds to comprehend; luckily the training video explains all.” The joke is that Bitcoin is too complicated. Further, no one is able to explain it properly, in lay terms. iCE3X would like to take up the challenge. We believe that Bitcoin is really not that complicated. Why? Well, because it’s not.

Try this analogy:

Bitcoin-vs-Paypal

The bank does not mail them the cash either. Rather, the bank has a ledger.

The bank sends an instruction to your friend’s bank: increase his side of the ledger by $100. The bank also decreases your side of the ledger by $100. The transfer is complete.

The banking system is old with poor infrastructure, so ledger updates can take a while.

For overseas transfers ,it can take many days. It will also cost lots in fees and charges. This is where Bitcoin comes in.

Bitcoin is simply a ledger too. But, the ledger is not controlled by one person. The ledger is maintained by a ddecentralizednetwork of computers.

No single person controls it. The internet controls it. A copy of the ledger is on computers all over the world. Anyone who wants to keep it can.

When you want to send money to your friend, you send a signal to the network (not a single entity, like a bank). The network increases your friend’s side of the ledger and decreases your side, just like the bank. The transfer is complete.

With Bitcoin this process is instant. Yes, instant!

There are other advantages:

It is free to send Bitcoins (No Fees). Anyone, all over the world, can use Bitcoin. You don’t need permission to use the system. You can come on and off at will. But Paypal sends money instantly too! So, why Bitcoin?

Well, PayPal is centralised. So, you have to trust PayPal. They can block your account, refund without permission and decide disputes how they wish.

Bitcoin's really not that complicated 1

If you do trust Paypal that’s fine. But many don’t. Also, remember, there are fees.

Most importantly, Paypal blocks access to over 60 countries. So, it’s not an option for most of the world.

With Bitcoin ,the money you are sending isn’t Dollars, Euros, Yen or Rand. You are sending ‘Bitcoins’. Dollars are the money on the banks ledger and network.

Bitcoins are the money on the Bitcoin ledger and network. Bitcoins are money because you can use them to buy good and services.

In fact, there is very little you can’t buy online with Bitcoin these days. The ability to transfer value instantly, anywhere in the world, at no cost (regardless of the amount) is useful.

So, maybe Bitcoin is useful for you too. See, Bitcoin’s really not that complicated now, is it? If you’d like to learn more sign up.

Leave a Reply

Your email address will not be published.