It’s not like Bitcoin is the only cryptocurrency game in town either. Imagine that you are a Bitcoin miner, and each time you want to enter your block into the blockchain and get a reward you would be given a combination lock and would need to guess the combination in order to enter your block.. Now let’s say that your computing power or hash/rate is the number of combinations you can guess in a second. How Bitcoin Works in 5 Minutes (Technical) Call them bitcoin, like they are mining gold. And just like on the park bench, the exchange involved two people only. It’s now as good as seeing a physical apple leave my hand and drop into your pocket. Whilst technically it is possible for a bitcoin miner or a bitcoin to find the solution on the first guess, it is made statistically less likely by the difficulty being increased perhaps this would be a larger puzzle in your analogy. So that’s what an in-person exchange looks like. That’s what I call corrupting the youth… What matters for inflation is the money in circulation, and how fast it’s circulating. In this episode featuring Nik Custodio, you’ll learn: How Bitcoin works at a fundamental level, ideal for beginners to cryptocurrency; Bitcoin is a distributed, worldwide, decentralized digital money. ELI5 Bitcoin: Basically its a network that has the most powerful computing power securing it. A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Now you can buy Litecoin, Etherium, Etherium Classic (whatever the hell that means), Zcash, and the latest one making waves, Dogecoin. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. I’m having an easier time getting my head around buying a plot of land that’s buried two miles below the ocean’s surface. Within the system, the exchange of a digital apple is now just like the exchange of a physical one. Explain Like I M Five Bitcoin Charts. This entry was posted in Uncategorized and tagged bitcoin bitcoin for dummies blockchain ethereum explanation mining on May 3, 2021 by Matias Bitcoin Mining Explained Like Youre Five: Part 1 Incentives Oh hey there! October 15, 2017 October 15, 2017 | Blockchain Curated. I guess well see if theyre right. So Ive finally given in to peer pressure and started a blog. The Bitcoin network varies its difficulty levels after the discovery of every 2016 blocks to ensure a constant output. Explain Bitcoin Like I’m Five. But I’m getting ahead of myself. If you're willing to assume the risk associated with owning bitcoin, there is an increasing number of digital currency exchanges like Coinmama, CEX, Kraken and Coinbase -- … So the more computing power you have the faster … Explain it like I’m five? A number of people have told me that I have a knack for explaining complex topics in a way that is easy to understand. If the network hash rate is high and the time taken to discover a new block is less than 10 minutes, then the network will increase the difficulty level proportionately to … You might be interested in Bitcoin if you like cryptography, distributed peer-to-peer systems, or economics. Explain Bitcoin like I’m 5…pretty please! I guess it’s really the same, whether I’m giving you a banana, a book, or say a penny, or a pound or a dollah dollah bill ya’ll…. Protected: Explain Bitcoin tech like I’m 5 Recently updated ! And that computing power makes it the most secure network ever created. Bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. Money that just sits there doesn’t contribute to inflation, whether it’s sitting in a private vault or in Ben Bernanke’s imagination. 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