BITCOIN VISUALLY. Part I.

Understanding Bitcoin: What It Is & How It Works.
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  • Lectures 31
  • Length 4 hours
  • Skill Level Beginner Level
  • Languages English
  • Includes Lifetime access
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    Available on iOS and Android
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About This Course

Published 3/2014 English

Course Description

Have you heard anything about Bitcoin yet?

Bitcoin currently creating controversy and history at the same time.

Will it eliminate credit cards and become as big as the Internet in the 90s? Take a look at the recent media buzz about Bitcoin:

“The next revolution to hit the Web after social media" Bloomberg

“A major means of payment for e-commerce", Bank of America

"96% of Merchant would recommend Bitcoin to Peers" Coindesk

As Bitcoin enters mainstream media, now is the time for you to better understand what Bitcoin is, how it works and why it's emerging as a significant breakthrough in the financial system!

Don't miss your to seize the moment. Take this course to make your own mind whether it's time to expand your financial portfolio, adopt it in your business as a new payment method with no transaction fees or simply be well versed at a dinner party.

Although the Internet is full of information about Bitcoin, it's often very technical and hard to understand unless you have a Ph.D. in cryptography or can afford to spend hours researching the subject. Save your precious time by taking this course and learning the practical information you will need to decide if Bitcoin is for you and how to use it.

We've prepared a concise and very visual tutorial that is easy to follow and explains the fundamentals of Bitcoin in plain English. We are honored to take you by the hand and lead you into the exciting new world of Bitcoin!

Part I of our course is all about the concept of Bitcoin – Here are highlights of what you will learn:

* What is Bitcoin

* Where Did Bitcoin Come From

* How Bitcoin Works

* Who Created Bitcoin

* Bitcoin Benefits & Drawbacks.

* Regulation of Bitcoin and MtGox Collapse

* Future Outlook

What are the requirements?

  • Keep an open mind, free up a couple of hours and you'll be ready to dive into an innovative concept that marries finance, cryptography and technology called Bitcoin!

What am I going to get from this course?

  • Part I is aimed at explaining in simple terms what Bitcoin is and how it works.
  • Part II, a separate course, delivers a practical application of Bitcoin concept explained in Part I.

What is the target audience?

  • Take this course if you are looking to:
  • a) really understand what Bitcoin is all about and get a grasp of the main terms widely used in the media related to Bitcoin such as digital wallet, Bitcoin address, block, block chain, hashing, Bitcoin mining,etc
  • b) be ahead of the curve in order to seize potential business and investment opportunities
  • c) educate others on Bitcoin as knowledge is power!

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: What Is Bitcoin?
01:57

This is a short introduction to Bitcoin. Is it currency, money,..or a payment system? As currency it needs to be issued by a sovereign entity, but it is not. As money, it needs to have 4 characteristics: be durable, portable, divisible and have intrinsic value.

01:31

The price of Bitcoin had a dramatic increase from several cents, to $100 and finally to $1,200 in November of 2013. It's an unprecedented growth that made first adopters of the technology millionnairs.

05:21

Bitcoin - the good, the bad and the ugly in the media:

- The shut down of the Bitcoin black market site "Silk Road";

- The $25mil. investment in Coinbase, a US-based Bitcoin Exchange;

04:00

A simple explanation is provided by comparing snail mail to an email. The parallel is then drawn between cash and Bitcoin. The logical chain helps understand a complex concept of Bitcoin by tapping into things that we are all very familiar with.

Section 2: Where Does Bitcoin Come From?
06:23

Where Does Bitcoin Come From?

You could mine it, purchase it on Bitcoin exchanges, purchase locally or get it via an ATM, and finally, you could earn it by playing computer games or accepting it for your goods and services.

Section 3: How Does Bitcoin Work?
04:46

How Does Bitcoin Work? What is a Bitcoin Address?

This video talks about Bitcoin addresses. A simple explanation tells you exactly what a Bitcoin address is, how it looks and what it means.

07:40

What is a Bitcoin Wallet? Where would you get it from? Similar to an email, you can open an email account online, or download an email client to your computer, a Bitcoin wallet can be located online or downloaded to your computer. There are things to consider whether you have a Bitcoin wallet on your computer and store your bitcoins there or use the Internet to access your web Bitcoin wallet.

13:11

What is a Public Key Cryptography? What is a Public Key, a Private Key in a Bitcoin Wallet? What is a Digital Signature?

Public-private key pair is at the heart of the Bitcoin protocol. It is based on an encryption algorithm called Curve Digital Signature Algorithm (ECDSA) . How does bitcoin wallet work? It has two keys, a public key, and a private key. What is the function of each key in the context of encryption the Bitcoin transactions.

09:52

How Does a Bitcoin Transaction Work?

An explanation of goes into a Bitcoin transaction is given by using a simple example where Lisa is sending 1 bitcoin to Mike. Bitcoin is a decentralized payment system; transactions are not funneled through one entity. They are direct, one-on-one or peer-to-peer. Bitcoin transactions are happening only between Bitcoin addresses (no private personal information is needed such as when you shop online - you are asked to enter your credit card info, your physical address, your name). Because of this, the Bitcoin protocol has to have checks and balances in place to address security concerns and other risks involved when dealing with strangers. Each transaction in the Bitcoin world is a set of inputs and outputs. The heavy reliance by the Bitcoin protocol on cryptography and math allows to address these concerns and validate a transaction. Until then its an unconfirmed transaction. Finally, a live transaction on the Bitcoin network is observed in real time.

Bitcoin Transaction - How Things Work in Real Time
01:47
06:54

What is a Block? What is a Block chain?

These two terms that are widely used when you read articles about Bitcoin or hear people talk about it. Understanding what a block and a block chain are is essential to understanding what Bitcoin is and how it works. Often, a concept of general ledger is used to explain how a Bitcoin block chain works. We see why that is the case.

16:30

Cryptographic hash and hash functions are explained in simple terms. A real life example is presented of where hash information can be found for each Bitcoin transaction and what it means.

What is a valid pr confirmed block? What is a nonce?

How is hashing performed? What is a proof of work?

The difference between the traditional banking and Bitcoin is reviewed.

07:41

What is a mining difficulty? How long does it take to mine a block? Bitcoin protocol has these variables identified so that the difficulty of hashing a block changes according to certain conditions. Again, the technical concepts are tied directly into a real life example.

06:20

This is where everything we've discussed in this chapter is put together. We see exactly what happens when you (or Lisa in our example) send a bitcoin to someone and how the transaction gets first, confirmed, and second, added to the blockchain. This is a culmination of previous bits and pieces explained thoroughly to finally show you how Bitcoin actually works from a much higher level - you'll get a view at Bitcoin from 10,000 feet.

12:08

From theory to reality - in this video we take a look at a Bitcoin blockchain, blocks and transactions as they change their status across the Bitcoin network from being 'unconfirmed' to 'confirmed'. You will see how transactions get recorded across the network, and how all those concepts (hashing, mining, blockchain,etc) exist in action.

Section 4: Who Created Bitcoin?
01:05

Who created Bitcoin? An enigma called Satoshi Nakamoto. The name has a deeper meaning than what one can guess. Satoshi published a whitepaper describing the concept of Bitcoin, problems with the current financial and banking system and how Bitcoin protocol addresses them.

9 pages

Satoshi Nakamoto Whitepaper: “Bitcoin: A Peer-to-Peer Electronic Cash System”

Courtesy of bitcoin.org

08:32

What does Satoshi's whitepaper address? There are two main problems Saroshi saw with the financial system back in 2008.

Bitcoin had a number of precursors: Ecash, E-Gold, B-money, and Bit Gold.

Section 5: Who Is Satoshi Nakamoto?
08:58

Who is Satoshi Nakamoto? The answer as it turns out not as simple... It can be anyone. Several, most probable candidates as suggested by the analysis of Bitcoin code and the Bitcoin whitepaper are discussed.

12:42

Ted Nelson, US sociologist, who coined the tesrm 'hypertext', unveils who he thinks Satoshi Nakamoto, the creator or Bitcoin is.

LINKS - Satoshi Nakamoto Has Many Faces
Article
04:50

Who else could be the creator or Bitcoin? There are many guesses as we've previously seen.

Some people suggest it can be government..we discuss a number of theories aroung this idea.

Section 6: Economics of Bitcoin
05:39

Is Bitcoin Like Gold? Some people believe Bitcoin is Gold 2.0 or digital gold. Is it so?

Peter Schiff and Max Keiser provide their opinion.

12:07

Peter Schiff, an American businessman, investment guru and financial commentator, discusses similarities and differences of Bitcoin versus gold.

06:57

The number of bitcoins is limited, making people believe that its price will eventually go up even more. The rewards for mining bitcoins are set to change every 4 years and be reduced by 50% every time.

Section 7: Pros and Cons of Bitcoin
14:55

A set of pros of Bitcoin is discussed in depth. Specifically, Bitcoin is decentralized, quasi-anonymous, secure and global. Economic and financial implications and considerations are presented for why people believe in Bitcoin and what function it could play in the society.

14:04

One of the drawbacks of Bitcoin currently is a lack of regulation and consumer protection.

An overview of how countries around the world regulate (or not) Bitcoin is discussed.

MtGox collapse is explained.

07:16

Cons of Bitcoin such as irreversibility of transactions, price volatility and concerns with scalability are discussed.

LINKS - Existing Regulation of Virtual Currencies
Article
Section 8: What's Next?
6 pages

PDF file containing links to Bitcoin Wallets (Desktop, Mobile, Online) and Bitcoin Exchanges.

Scroll down to see the links.

10:23

First mover advantage and seizing an opportunity for those who believe in Bitcoin.

Alternative crypto-currencies such as Litecoin, Ripple, Dogecoin, Feathercoin, etc and their market capitalization are discussed.

Significant business developments in Bitcoin and a potential for the price to hit $50,000.

Bitcoin Visually. Part II is a hands-on video training for those who would want to use, invest, trade Bitcoin.

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Instructor Biography

Expert in Finance, Keeping Your Finger on the Pulse

We are your trusted source of market wisdom. Nothing stands still; as the world of technology and finance evolve, so should our understanding of it. Each profession tends to have its own "language" of terms that tend to make it intimidating to newcomers. Making complex concepts easy to understand is what we do best. We perform voluminous research into the courses we create and spend time converting difficult, technical language and ideas into terms that the layperson can easily comprehend. We also pride ourselves in inviting knowledgeable instructors with practical experience in the business/finance world to deliver our courses.

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