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Tuesday subscribers thank you so much for joining me today i am jeremy this is the financial education channel and today we’re talking big coin for beginners crypto currencies for beginners guys this is this is something i’ve paid attention to for quite a while but i’ve never really like understood crypto currency never really understood bitcoin so about last
Week i was like you know what i’m done with this i’m going to research for like a week about bitcoin about crypto currencies and really understand these and at least to the point where i understand the basics so i’m going to share with you guys all the basics today kind of like the 11 like most basic things you’ve got to know about bitcoin know about these crypto
Currencies so you can at least understand it and what’s actually pushed me is so many who has in the comments section of them asked about bitcoin not asking about crypto currencies like what are they those kinds of things and i’m like i’m doing my fifty thousand subscribers a disservice if i don’t look into and do a video about this so that pushed me and here we go
Guys i hope you enjoy this leave a thumbs up if you do let’s get into it number one you got to understand what a cryptocurrency is first off a cryptocurrency is a digital or virtual currency that can be exchanged between people or businesses that accept them bitcoin in what’s called ether is the other biggest cryptocurrency out there bitcoin being kind of the main
One now anybody that has bitcoin has a you can basically set up a bitcoin account if you want it’s not like a need to be a special person from a special you know country or something to set this up anybody that’s willing to accept bitcoins you can pay them in bitcoin or you can buy or they can pay you in bitcoin if you accept it same thing with the businesses and
More and more businesses are now accepting bitcoin and some of the other crypto currencies but specifically bitcoin so it’s becoming a more and more popular thing now guys so that’s basically how it works it’s just a digital virtual currency that you can trade back and forth between people for whatever you’re trading back and forth for number two money goes into
Your your bitcoin virtual wallets off use especially if you have bitcoin goes into what’s called a virtual wallet this is like think of a physical wallet right you have a physical wall you have credit cards in there you have cash in there probably well this goes into a you’ll form of a wallet and basically that’s where it’s kept that’s where the bitcoins are kept
And however much money you have in there is however much money you have which is i don’t even know if you could really call bitcoin money for instance but i you know it’s a currency at the end of the day number three there’s no one in particular who controls the currency no one in particular controls is currency governments cannot manipulate it in the way they
Can they’re you know current currencies right all countries out there pretty much at least slightly manipulate their currency some are worse than others some like do massive manipulations of their currency they’ll buy a bunch of other currencies to devalue their currency or increase value if that’s the way they want to go depending on what they want to do they’re
Bitcoin you can’t do that you can’t really manipulate it coin a government can’t manipulate it the same way they might want to manipulate the us dollar or or china might want to you know manipulate the yuan so things like that guy so it’s it’s very very interesting you know and i don’t know if that’s a good thing or bad thing that’s something we might have to get
Into it on another video sometime but you know government can’t really control this the way they can add their currencies currently number four crypto currencies make it easier to transfer funds between two part two parties in a transaction these transfers are facilitated through the use of public and private keys for security purposes so basically you want to
Transfer money to me we have to you have to do it through a private key first once that goes through then it goes to the public key which things can go out to the ledger so it’s kept track of you know jeremy paid out jonathan one bitcoin or half a bitcoin or whatever it is guys and but it has to go through the private key first so that i actually did that right
It’s like agreement between you know him and i and then it goes to the public key so then everybody can see the transaction out there guys so let’s go through two different ways number five number five fund transfers are done with minimal processing fees allowing to avoid the steep fees charged by most banks financial institutions for wire transfers so bitcoin
Could potentially in crypto currencies in general could potentially hurt that inks a bit now those other way things can will you know if these keep going they keep getting more and more popular crypto currencies the banks will still find ways to make money off this however you know things like wire transfer very expensive thing to do through most banks guys but
Bitcoin you can you can pay somebody out if you’ve got a family member in another country you’ve give them a bitcoin and cost you literally nothing guy so a whole different ballgame there as far as you know between doing a wire transfer of money to someone versus giving bitcoin to someone guys number six number six the blockchain bitcoin uses to store is an online
Ledger for all transactions that have been conducted using bitcoin so this thing called the blockchain and on this it’s basically a ledger of all the transactions that go through and tons of different parties you know all keep track of this this you know all the transactions in the ledger and whatnot and they can compare them and then we make sure everything is
Accurate on that ledger but it’s not like there’s one company it’s not like there’s one person that keeps track of the ledger there’s a ton of people out there that are keeping track of this ledger and we’ll get into how they do that and those kinds of things in just a minute but that’s basically the thing it’s not like you know saying you know you go buy something
From walmart right now with your chase account right you’ve got a chase account or whatever chase is going to keep track of that transaction and say oh you spent $23 at walmart and so the duck $23 this is actually kept by a bunch of different people out there guys a bunch of different people number seven number seven it’s the first possible worldwide currency what i
Mean by that it’s the first possible worldwide currency is if let’s say we’re in a world where everybody uses bitcoin right everybody uses bitcoin understands bitcoin i could go to france i could go to france on vacation see a guy with a nice gold watch on and say hey you know what i want to buy that gold watch from you oh and i don’t even have to speak only have
To say that to him i could just point his watch he like and show them on my phone one bitcoin i’ll give you one is you know one bitcoin for that and he if he uses bitcoin he would understand the valley that in neither be like okay let’s do it or not ah let’s not do it where right now if i was going to france and do that scene try to do that same type of thing i
Held up $2,600 bills right because i think the coins out around $2,600 right now so if i hold out $2,600 bills and that’s $2,600 right he’s not look at me and i don’t know i don’t know if that’s a good that’s a lot of money or a little bit of money he could do the math on it eventually and you know pull out a calculator and be like okay so you know our our currency
Is trading at this and yours at that let me do the math on that okay now we can do it like like it’s a whole different ball game if everybody’s using that one currency it’s like when i went down to mexico recently get some dental work done by the way i always go to mexico call me cheap or whatever i’m not paying for damn bail insurance i live so close to mexico is
Ridiculous so it’s over like six hour ride it’s no big deal guys so anyway i’m down in mexico and i actually just need to get a cleaning my wife and i got cleaning by the way was $45 total for both of us to get cleaning which is like insane but the lady had to like pull out a calculator because i didn’t have pesos on me i just had cash i had us money so she had a
Full up to calculate and do the math and up being $45 so our number eight number eight miners create bitcoins by solving insanely hard mathematical functions this is the same process that also verifies previous transactions previous transactions guys so if you want to be a bitcoin miner nowadays is really hard like you need like ridiculously complex computers like
You should be able to just do it at your desk or whatever nowadays pull different whole different ball game because mining for bitcoins is a really tough mathematical thing that you need computers running running algorithms on and it’s really complex and we won’t even get into that side of things guys but basically that’s how new bitcoins are found from miners who
You solve these really hard mathematical take problems and then new bitcoin is formed and also it’s the same way the ledger is kept accurate out there guys number eight or excuse me number nine bitcoin miners make money from doing that insanely complex work so you say why would anybody want to do that why would anybody want to solve those problems and buy all that
Computer equipment stuff well because they make money off that they make a percentage which i don’t have the exact percentage but they make bitcoins basically off of however many bitcoins they they mind however many ledger’s they keep accurate things like that guy so they do get paid for doing that otherwise i’m sure i wouldn’t want to do that correct number ten
Number ten in the year 2140 so what are we talking here about about one hundred and twenty three years from now and year 2140 the last bitcoin is supposed to be mined this means there’s a finite amount of bitcoins out there guys there’s a finite amount of bitcoins no different then there’s a finite amount of gold in the world or something like that right so that’s
That’s pretty interesting in itself that bitcoin can never be diluted you can just say okay let’s let’s go create 500 million more bitcoins or 100 million more bitcoin like you can do a currency you know if the us wants to say let’s create you know ten billion more dollars they can do that bitcoin you can’t do that you can’t say let’s let’s go make ten million
More bitcoins that the you know one year 2140 it just ends at that point but it doesn’t mean the currency ends it just means you know the currency might have to go up and be more expensive at that point because it’s a finite amount of them out there guys number eleven last one number eleven here you can invest in bitcoin and other cryptocurrencies so some people
Have done this i heard a story the other day that a kid invested like two thousand bucks or something in bitcoin or twenty seven hundred bucks or something know that millionaire like he did it like he’s seven or eight years ago when bitcoin was kind of like brand-new or whatnot now he’s a millionaire from it now highly it’s still highly risky you know bitcoin
Cryptocurrencies are taking more and more serious but still at this stage it’s not like it’s in automatic like bitcoin is absolutely the future cryptocurrency sort of absolute future so just realize you could make a lot of money but you could also lose a lot of money if things fall through or whatever most governments don’t allow and things like that guys so just
Be under just understand the risk involved with it and if you do want to invest in it the easiest way to invest in is really just buy a bitcoin and hope that bitcoin keeps going up in value versus what the dollar is in those kinds things and that’s how a lot of investors are making money right now through these cryptocurrency they just buy them and then just hold
Them they don’t even really care to spend them or whatever they’re just buy them hold them and then you know hopefully they go up in value which they have you know ether especially over the last two years and bitcoin no it’s gone up dramatically used to be able to get you know bitcoins for pennies pennies and now it’s like $2,600 a bitcoin as of record in this
Video guys so whole different ballgame there let me know if you guys ever want me to do a video where i go into a little more in depth on like the advantages and disadvantages of bitcoin and crypto currencies in general if you want something like that i could do a video like that eventually you know it’s kind of diving you know kind of you know playing the middle
And saying you know this is why bitcoin cryptocurrencies could be really good this is why they could be bad and lose a lot of value like let me know if you guys ever ever interested or something like that anyways hope you guys enjoyed this day my book is linked in that description if you just came across this channel you may want to subscribe we talked personal
Finance on the channel we talked entrepreneurship i’m an actual business owner i give away so many business tips we talk stock market investing more than anything thank you for watching guys and have a great day you
Transcribed from video
BITCOIN FOR BEGINNERS! | CRYPTOCURRENCIES FOR BEGINNERS! By Financial Education