Hello everyone and welcome to the Bitcoin section of the course and this section of the course we're
going to be covering everything to do with bitcoins from what Bitcoins are to how they work and all
the way on to how you can basically use it for transactions on the deep web or the DOT net.
So let's get started.
So in this video this is a basic introduction to what Bitcoin is how it's used and what the current
value is.
So let's get started.
So firstly you realize that Bitcoin has a very nice logo.
I mean it just looks like a coin but with a bit basically the B means a bit.
So let's get started.
Coming on to understanding what Bitcoin is you first have to understand that it has an abbreviation
and that is BTC.
So let's basically basically explain what Bitcoin is.
So Bitcoin Firstly is a decentralized currency which is which essentially means that it's not a physical
currency.
It's used on the Internet.
So this is not it's not a currency that you can basically have physically it's a currency that is essentially
what the value on the Internet or digitally.
All right so if today the Internet were to collapse Bitcoin would also collapse with it and money as
like money has today will not have any real value.
However it does have value because the Internet is such a widely used to.
Secondly it's the most preferred for payments on the dark web or the deep Web.
And I think most of you guys already know this is that it is the most preferred method of payment when
coming to transactions on the deep web.
For the simple fact that it has the best anonymity in terms of how Anonymous This payment is.
Now you have to also have to understand that Bitcoin is not completely anonymous.
All right.
It's not completely it's not really completely hidden behind any shadows.
However it is much more anonymous when compared to your credit card.
And I'm going to get you into basically Bitcoin mixing in the future videos in this section.
So let's go on and on till the final part here which is basically Bitcoin is a very erratic currency.
Now let me explain what this means.
Bitcoin is highly volatile and unpredictable in the sense that it does not store value in a very predictable
predictable fashion.
Now you might be asking yourself well has Bitcoin value always risen.
Well yes that's true but it's always it has sometimes gone down and that's you know that really is dangerous
in terms of people want to try and invest in it.
I will not recommend anyone to invest heavily into Bitcoin because it's really it's really you can't
really tell what the value is going to be of a few years from now.
And we're going to get into that in a few minutes here.
Now let's actually look at the some basic Bitcoin terminology.
You might have heard of this some of these terms if you're keen on the whole Bitcoin scene.
So firstly you have your bitcoin wallet.
All right.
Now this is where Bitcoins will be stored for later use it's just your virtual wallet where you can
store bitcoins.
All right this is unique to you and it's protected by you.
You have a password and that you basically understand that this is your wallet where you can store your
bitcoins.
Of course it's a virtual wallet.
Now secondly bitcoin address.
All right.
Now this is basically an alphanumeric key that would be used to send and receive Bitcoin.
Now this is your unique address that will be used for example if you want to pay someone on media or
on the deep web or the dark net.
You basically give them your bitcoin address and so on and so forth vice versa.
Now a block Jane this is really this isn't really important right now.
We'll get into it when we're talking about bitcoin mining but basically a block Jane is a list of blocks
which I'll explain what a block is and that have been mined since the start of cryptical currency cryptocurrency.
Now I'll get to that in a few minutes.
I promise probably in the next videos.
Let's look at what a bitcoin 20:00 is now a bitcoin 20:00 is the location where you can buy Bitcoins
with real money so this is where you exchange your money.
For example U.S. dollars.
That's an example or you can talk about the Great Britain Pound.
You can exchange that for Bitcoin or it's basically transferring as you guys know you're basically converting
your currency into Bitcoin.
Right.
And vice versa.
Now let's look at bitcoin mining which is a very very hot topic right now and I'll probably cover a
few videos on Bitcoin Manning and how you can do it yourself.
So bitcoin mining is the generation or production of bitcoins in the exchange for solving cryptographic
problems using computer processing.
So basically if I were to set up a hypothetical Bitcoin miner This will include a computer obviously.
And essentially what your computer is going to be doing is going to be using a lot of its processing
power for solving these cryptographic problems and in exchange for your service you will be granted
a certain amount of Bitcoin depending on the complexity of the cryptographic problem you are using.
I hope that wasn't too confusing.
But essentially bitcoin mining is as most of you or as I'm guessing some of you may have heard is basically
a just a cluster of computers connected together performing cryptographic problems in exchange for Bitcoin
which in which later can be converted into real money.
So it is a money making scheme.
And now let's look at the big value because I think it's very essential that we understand what I was
pointing out earlier if we look as of recording this video the Bitcoin is a two thousand two hundred
eighteen point four seven U.S. dollars that's one bitcoin.
Now if you pay attention to this little graph here it's going to tell you that Bitcoin started out almost
at a zero value in 2013.
All right now by the end of 2013 going on to 2014 it took the hugest Spike I think in value and went
up to I think a thousand.
1000 $120 from not wrong.
If I kept up with that right.
And then also in basically after two months it dropped.
All right.
A few hundred dollars and then claimed again and then it dropped and then claimed again and then it
went down.
By the end of 2014.
And then it climbed again just at the beginning of 2015 and then declined very steadily I think up to
300 or 200 dollars and then kept steady on throughout the entire 20:15 the mid of 2015 onwards and then
all the way to 2016 the beginning of 2016.
It started climbing at a very steady rate almost like a tangent curve.
As you can see right here with a few hikes along the way and the highest value the highest peak I think
that it's reached ever in history is basically very very recently in 2017.
As you can see the value is not one two thousand dollars but what I was pointing out with how erratic
it is is as you can see this graph does not make very sense.
And if you are to look at it in a mathematical or statistical point of view what I mean is if you guys
are aware of statistics you will understand that this graph does not is not a very good graph in terms
of if you are investing in this currency for example because it goes up comes down goes up comes down
very erratically.
Its not stable for a long period of time.
It would be acceptable if the value would be would keep on going.
But over the period of two years increased gradually with little or no spikes because that is very very
threatening and you really can't tell what the future holds.
So that's basically it for this video guys.
If you have any questions just let me know in the Q&A section of the course.
I'm going to be continuing in the next video about how to set up your bitcoin address and your wallet
for Bitcoin transactions.
So thank you so much for watching.
Goodbye.