Intro to Bitcoin - Is it the most disruptive technology in the world?

I explain why crypto represents a brand new way of using money in the history of humanity. How does Bitcoin work? What makes it different?
Sections of the video:
0:00 Intro
0:36 History of Writing & Single-Entry
1:40 Double-Entry
2:50 Triple-Entry
5:33 Basic Idea: Public Ledger
6:28 Public Key Cryptography
8:19 Bitcoin Mining
Link to Part 2: • Intro to Bitcoin - Par... ("The Future of Bitcoin")
Resources
Ian Grigg's 2005 paper "Triple Entry Accounting"
iang.org/papers/triple_entry....
Original Satoshi announcement of Bitcoin archived at:
www.metzdowd.com/pipermail/cr...
Original Bitcoin white paper:
bitcoin.org/bitcoin.pdf
Example Bitcoin address ("Alice"):
blockchain.coinmarketcap.com/...
Cryptocurrency prices:
coinmarketcap.com/
Interview with Trace Mayer:
• BITCOIN: Once in a SPE...
Podcast clip of Michael Saylor:
podclips.com/ct/ohOR1C
Interview with Warren Buffet:
• Warren Buffett: 'I don...

[@vitorwonrondon]

This man is the definition of a good teacher. Humble and with a genuine gleam in his eyes.

[@theartemis5687]

Woah, the best explanation of Bitcoin on the whole internet. Kudos to you, Sir.

[@MatthewWeathers]

Thanks. I'm glad you found it helpful.

[@omgwtfrofltomato]

thank you for reminding me what great teaching is, as i had completely forgotten what that feels like.

[@MatthewWeathers]

Thanks.

[@viperbot5311]

Sure

[@Ramius117]

That was incredibly clear and succinct. Thank you sir!

[@john20johnny]

Thank you, great explanation, I wish there was such a clean and clear explanation in 2012.

[@MatthewWeathers]

Likewise. I wish I knew enough to make it in 2012. Try this one out: kzbin.info/www/bejne/j56zmGeMYr54Zs0 - he describes how to buy Bitcoin and demonstrates buying some for like 30 cents each (in 2010)

[@john20johnny]

@@MatthewWeathers thank you 🙏

[@Vextrove]

Thank you for uploading videos, you've been uploading more lately! :D I like your personality. I also like how you explain bitcoin by first explaining ancient stuff!

[@Vextrove]

Just trying to verbalize my appreciation for you! I think you're of good character.

[@MatthewWeathers]

Thank you. That's very kind. I appreciate it.

[@shaunmartino]

You're the best, Matthew! Love it.

[@MatthewWeathers]

Hey, Shaun. I'm glad you liked it.

[@Jordan-xe1el]

You're a great teacher and I really appreciate all your videos!

[@MatthewWeathers]

Thanks! That's very encouraging.

[@ratnakarravi2389]

Wow, after watching videos on bitcoin for years, finally i understood what it really is. Thank you.

[@pranjalkohli183]

Awesome explanation !!!

[@BactrianNomad]

I have seen lots of videos about bitcoin and you explained it in a very understandable way.

[@MatthewWeathers]

Thanks. That's my goal. I'm always trying to make complicated things more simple for people.

[@admiredjewel]

I really enjoyed it.

[@MatthewWeathers]

Thanks! I'm glad you liked it.

[@kgcxrhd1996]

This is very informative

[@flamingwoodz]

I'm a simple man, I see a Nano logo, I give a thumbs up. Seriously though, great video. Wonderful explanation of single, double and now triple entry accounting!

[@MatthewWeathers]

I've finished my follow-up Part 2 video about cryptos (kzbin.info/www/bejne/mpjJhK2YaNd6lbc), and I mention that Nano is my favorite. Hopefully this will bring some more exposure. I really do think that 10 or 20 years from now, no one will put up with fees or transaction times that are more than a few seconds, and Nano can already accomplish that.

[@flamingwoodz]

@@MatthewWeathers I completely agree! Feeless may become the standard. Thank you Matthew.

[@arvindp551]

Thank you Mr. Bean!

[@TrevorAndersen]

First you made me know math and now you make me know crypto! Thanks again.

[@MrGibbboo]

Most helpful video bitcoin-related on KZbin. Thanks

[@MatthewWeathers]

Thanks for the compliment. I appreciate it.

[@surendersolanki2897]

Best explanation

[@gerrardfortinos.9809]

Finally, a simple, digestible explanation of Bitcoin.

[@calembur]

This is the series I was looking for. Looking forward to the next episodes! What is a wallet and how does it work? What’s a hard wallet? What’s that seed number thing?

[@MatthewWeathers]

Those are good questions. Now that I've just finished Part 2, I'm thinking about making a Part 3, in which I describe how seeds work, and what a hardware wallet is. (Meanwhile there are lots of good KZbin videos already out there that explain it.)

[@kkthecooldudegaming1207]

Underrated video

[@dmitrylompa3146]

NANO is instant, feeless, eco-friendly without compromising security and decentralization.

[@MatthewWeathers]

I agree. I'm almost done with my follow-up video, in which I will talk about NANO, which is my favorite crypto.

[@arweaveobaid1873]

@@MatthewWeathers loved your great educational vids.. cant wait for NANO one

[@MatthewWeathers]

@@arweaveobaid1873 Well, it's not just about NANO, but I mention how it's free and quick, and say that it's my favorite. I just published it today. Here's the link: kzbin.info/www/bejne/mpjJhK2YaNd6lbc I can't imagine that in 10 or 20 years, we won't be using NANO or something like it. I don't want to pay fees.

[@hurontoikiy7036]

Thank you sir🙂

[@krantzz2024]

Finally understanding what bitcoin is. Thanks Sir.

[@MatthewWeathers]

Thanks. I'm glad you learned something.

[@krishtakyoboi9076]

Love you sir

[@ashwinsureshgarg9975]

Ok that was helpful

[@Nfkkzjejzjdj]

HI I LOVE YOUR CONTENT

[@jacque1331]

A different take on Bitcoin. How refreshing

[@yuzukiru]

wow

[@rogercruz1547]

Can't wait for part 2. I'm part of the dev community of Nano and I want to see your explanation for the block lattice hehehehe To understand Nano one must fully understand bitcoin, then throw away PoW, PoS and DPoS and understand network weighting with multiple server signatures (ORV) and then understanding parallel blockchains over a DAG and I'm so curious how you're going to approach it. :P

[@MatthewWeathers]

Oh, cool! Thanks for writing, Roger. Part 2 is almost done, and it features NANO prominently, since it's my favorite crypto. It's what Bitcoin was meant to be.

[@MatthewWeathers]

I just published it today. Here's the link: kzbin.info/www/bejne/mpjJhK2YaNd6lbc I got a handful of NANO comments recently... was my video posted on some NANO forum recently?

[@rogercruz1547]

@@MatthewWeathers Maybe we shared it on the official discord... hahah

[@rogercruz1547]

@@MatthewWeathers btw, great video. Just watched and swept the wallet. Thank you! XD

[@saidheeraj4364]

LOVE FROM INDIA

[@tywebb7348]

Well put together video. This is exciting, you have more subs than any btc/crypto personality or educator. A new demographic is getting exposed...curious what you have to say on "should people invest in these other coins" (not btc) congrats on your success 👏

[@MatthewWeathers]

Thanks, Ty. I'm working on part two. If you're in a hurry to see what I say, I did a rough draft on my personal vlog channel. See the second half. But basically, I said it's hard to know what to invest in, but if you put some money in BTC and ETH and wait 10 years... it might be profitable.

[@MatthewWeathers]

Part two is done. Just posted it today.

[@HighLife_Highlights]

wow now i can learn everything about bitcoin by watching it on my dirty projector screen!

[@kumatoons5508]

how can you start mineing? and how do you sell?

[@PlayU2U]

That's great explanation! But can you please do a video about how exactly the price of these crypto currencies increase and decreases! Like if someone is buying then other person is selling and so if someone is selling then there must be a buyer! So how the price changes when there's always both at the same time! I know so far about the supply and demand but still it's unclear to me! Thank-you Sir!

[@MatthewWeathers]

Thanks! So... you want me to make a video that tells you exactly what the price will be in the future? :) Well, I wish I knew. I think that's what everyone want to know. But you're right, the price is set by a buyer and seller agreeing on a price. That's how stock markets work, too.

[@todoroni9643]

Tbh I hate Bitcoin bc my parents always fight over stuff like that lol

[@christsaves7405]

This makes it harder for the common man to earn money...

[@MatthewWeathers]

I disagree. It makes it possible for anyone in the world with a computer or mobile device to be their own bank. It gives financial power to individuals, with no banks needed as middlemen.

[@kapowshi]

This was a great explanation, can you please make more videos? :)

[@MatthewWeathers]

Yes, I plan to do another one soon

[@billiejoearmweak5302]

2nd like

[@thomasowens9660]

Hey Matthew its me rowan on grandad's phone again good video you did great work on this video if you were my teacher I would be like oh my god it's you hope you read this soon cya later bro

[@MatthewWeathers]

Hey Rowan. Always nice to hear from you. I'm glad you liked the video.

[@thomasowens9660]

@@MatthewWeathers yeah it is Matthew me again it's crazy how you are always able to reply and also I hope we can talk on the phone again real soon cya later bro from rowan

[@quasur57]

It also might be hard to use crypto becasue it is decentralised and therefore it is more difficult for governments to tax so they wont want to have it used in their country

[@vadimsazanov1467]

Interesting if bitcoin is decentralised, as I understand there's no big boss or company who has control over what's happening with it, then who said that the block reward should be 6b now, that it should decrease and by the time the amount of bitcoins reaches 21m stop being given?

[@MatthewWeathers]

The block reward schedule and therefore the cap of 21 million were built in to the protocol from the early days. As long as the majority of users agree with that protocol, it will stay in force. (And current holders of Bitcoin have a strong incentive to limit the supply, as it will make their own holdings more valuable)

[@syrupdrizzle5379]

can you really establish value in the dollar or is that done against us

[@rudrasingh2732]

Three people to go to on KZbin are surely(for some extra economic or mathematicalor scientific stuff): Mathologer Mr. Matthew weathers And Eddie woo(I loved his second channel)

[@OmnipotentZORG]

What's your opinion on Ethereum PoS and Smart Contracts?

[@MatthewWeathers]

PoS is a good idea. It will use less electricity. And smart contracts are the future of finance... but no one know which system will become dominant. Ethereum has a big lead, but other systems have newer tech (like Cardano). So, we'll see...

[@OmnipotentZORG]

@@MatthewWeathers Thanks for the response!

[@lasagnaravioli]

2 yrs later from that other video

[@shauny9149]

Bitcoin uses SHA256, what would happen if this was compromised? Do you think as computers advance that this will eventually happen?

[@MatthewWeathers]

It's possible. But if that happens, it would be relatively straightforward to switch to a different hashing algorithm for Bitcoin.

[@excalibur8178]

Hi

[@ddljddlj704]

Explain monero

[@user-qh8vm1me5w]

hmm

[@hgam2339]

i got a question: if there's no reward for data mining after say 2040, then i can't see anyone going for it anymore. what would happen to the ledgers then?

[@MatthewWeathers]

That's a fair question. The answer is that miners will still be able to collect the transaction fees. And by that time, just the fees alone will make it worth the effort to do the mining. The most recent block that was mined (at 2021-07-23 17:43:19, see blockchain.coinmarketcap.com/block/bitcoin/692366 ) gave the miner 6.25 BTC in reward, plus 0.0311567 in transaction fees (worth $1046).

[@rogercruz1547]

``` CAmount GetBlockSubsidy(int nHeight, const Consensus::Params& consensusParams) { // nSubsidyHalvingInterval = 210000; int halvings = nHeight / consensusParams.nSubsidyHalvingInterval; // Force block reward to zero when right shift is undefined. if (halvings >= 64) return 0; CAmount nSubsidy = 50 * COIN; // Subsidy is cut in half every 210,000 blocks which will occur approximately every 4 years. nSubsidy >>= halvings; return nSubsidy; } ```

[@rogercruz1547]

This is straight from the file validation.cpp, lines 1189 to 1200

[@MatthewWeathers]

@@rogercruz1547 Thanks for providing the actual code. That's pretty cool.

[@z0e898]

While it's impressive within the realm of accounting, there are many issues with them. It's still a highly volatile form of currency that functions more like stocks than anything else, which itself is a lottery. And without any sort of redistribution, those 21 millions will end up in the digital pockets of a small amount of people, they are already used for the purpose of tax evasion after all. As pointed out by the video, the promise of being free from financial institutions is kind of an illusion because most people will have to rely on companies like paypal, just like the people of Mesopotamia had to rely on the scribes. And that 21 millions also assumes we'll make it to 2140 which, in part due to crypto mining, is no longer a certainty with the advent of global warming and environmental collapse.

[@MatthewWeathers]

You're right about the problems. There are solutions to some of them. For example, I like NANO, which has zero fees, takes hardly any electricity, and has instantaneous transfers. Just like the problems with the Internet in 1995... we mostly figured things out and it became really useful. I think the same kind of thing will happen with cryptos eventually.

[@justinreusnow]

Nice Nano plug lol

[@_Osvaax]

Este no es el wey que hackea canales y hace en vivos de eso??

[@mairacristian54]

4:44 how come this guy says bitcoin has no value, but at 9:06 it says bitcoin was WORTH that amount of money?

[@KenedyCruzMiranda]

buscando el logo de nano

[@MatthewWeathers]

Me gusta Nano. Aquí está el enlace al siguiente video: kzbin.info/www/bejne/mpjJhK2YaNd6lbc

[@irfanrezai732]

Husket gãtjem r jam vošu

[@thomasanderson621]

$nano

[@MatthewWeathers]

I agree! Look for part 2, I mention nano

[@MatthewWeathers]

Okay, it's published. Here's the link: kzbin.info/www/bejne/mpjJhK2YaNd6lbc

[@thomasanderson621]

@@MatthewWeathers Excellent video, thank you for your contribution to a better world.

[@asistentarutiera1524]

btc +200k this year

[@MatthewWeathers]

It's hard to know the future. Maybe.

[@asistentarutiera1524]

​@@MatthewWeathers 2013 move on graphic is invisible when 2017 start' play around .....to let 2017 small on graphic we have to draw the btc price over 250k

[@brucesimpson3945]

This guy looks like Minecraft Steve

[@TomGreen99]

_It's just math!_

[@harshilrajsharman6820]

Hi you don't know me but i know your student zach king and i am his biggest fan and i have been studying about him and i found you so pls pls pls let me meet zach king pls pls pls.

[@MatthewWeathers]

Yes, I like Zach's videos. He's doing really well. I think he does meet-ups once in a while. Connect with him on Twitter and KZbin.

[@harshilrajsharman6820]

@@MatthewWeathers yeah i did but no reply he is a big guy,i also started doing editing it has been two years and i can make videos lile him but not that much perfect And guess what i am 14 year old..

[@harshilrajsharman6820]

@@MatthewWeathers but though i like your class videos pls pls upload more.

[@ThorusCZ]

But SHOULD I BUY SHIBA INU OR NOT

[@MatthewWeathers]

Well, yes, you should have bought it several months ago. As for the future... No one knows

[@jonopens]

Almost all currency has no fundamental value. Buffett just trying to discredit BTC with his massive persona. Booooo!

[@hashtagPoundsign]

Ponzi scheme, I'll pass.