what's up guys yolo here today let's talk about bitcoin how does bitcoin actually work and why should you invest in bitcoin if you bought 10 bitcoins today like i did you need to have a long-term mindset you gotta understand that your 1479 bitcoin may fluctuate up and down and by the end of this video you'll know exactly why your 4
65 bitcoin is a great guys what's going on bitcoin is volatile you know what else is volatile me in may 2010 a guy bought two pizzas for 10 000 bitcoins with the same amount of bitcoins he could buy more than 1 million pizzas in 2021 during the same period our us dollar inflated by 20 so now you actually have to pay more in 2021 for that one pizza that you could buy in 2010 our current monetary system is very flawed you store all your life savings in the bank and every time you want to buy something the bank pays for your purchase using your own money while taking transaction fees how would you feel when you're trying to kiss your girlfriend suddenly someone appears out of nowhere and says hold on you kiss me and i'll kiss your girlfriend for you and you know what just because you're a nice guy i'm gonna give you another option i kiss your girl now and you can repay me with 12 foot massages what do you say okay so he kissed my girl and i'll have to give him 12 foot massages yes and you wrote that script yes i'll kill you bitcoin on the other hand utilize a decentralized peer-to-peer system for every transaction that you make you're dealing directly with the person that you're trading with it cuts out any middlemen like your banks the government and any sort of regulators when you trade your bitcoin to another person you'll have to broadcast your transaction on a ledger which can be viewed by everyone else on the bitcoin network a miner then can verify the ledger and create a new block which he then broadcasts to everyone else as well forming a blockchain you get it now so in the bitcoin world it's something like this guys i literally just kissed her yeah yeah i mean we did kiss but it was really mediocre oh my god they just kissed if you heard they just kissed all right guys can someone verify this kiss for a special reward from the bitcoin god love me to verify i'm the fastest miners around here his lips are wet his palms are sweaty knees weak arms are heavy but on the surface he looks calm and ready to drop bomb but he keeps on forgetting what he wrote down the whole crowd goes loud verified in the grand scheme of the bitcoin network there are miners from all over the world competing with each other for verification spots they will have to solve an insanely difficult math equation using nothing but their time and luck whoever solves the math problem first will get to verify the transactions create a new block broadcast the new block to everyone on the network and after all of that the miner will receive a freshly generated coin as a reward bitcoins utilize a decentralized system which gives the power to the people instead of the government or single institution if one day the us government fails or they suddenly freeze your account your u
s currency will no longer hold any value if the government decides to keep printing more money and handed out like candies which is exactly what's happening right now that will cause inflation on the us dollar so your money will no longer have the same purchasing power as before and people start freaking out because everything around them is getting more expensive hello sir this is dominoes our medium pizza is 5099 or 9599 if you order two this is outrageous i mean i only received two thousand dollars from the us government per month for staying home now i can't even afford pizzas we must demand for more free money from the government we paid taxes so the government should pay for us bitcoin on the other hand is like the internet no one really owns the internet not even the creator of the internet it is rather a set of protocols or ideas and as long as you follow the guidelines you can use different software such as chrome safari firefox or whichever is your preferred method of internet the software you're using does not affect the quality of your internet in fact you can keep improving the software to make your internet experience a little bit better you can use internet 24 7 it never complains or closes down you can also access your internet from all over the world unless you're in a place where the individual has absolute power and doesn't want you to know anything about the outside world and this is why bitcoin is so appealing to people because batting your life savings on someone else or another party is never a good idea with bitcoins your investment is not being controlled by anyone and no one has the power to freeze or take away your bitcoins without your permission unless they kidnap you and be the crap out of you for your secret keys but even then you can still negotiate if you kill me now my secret key dies with me and you will never get any bitcoins from my account why don't you just take my credit card and go buy some pizzas tapping works under a hundred dollars you can even buy two pizzas for 9599 i heard dominoes is doing a promotion right now you better hurry bitcoin was designed to mimic gold reserves and gold has proven to retain value throughout the history of mankind it has a maximum capacity of 21 million coins once all bitcoins have been mined which is going to be year 2140 miners will no longer receive rewards from mining instead they will receive food massages for their work since bitcoin has a finite number and new coins are only being produced through hard work and foot massages it is a deflationary currency not only does it not lose value over time the price of bitcoins increased by a whopping seven thousand percent over the past five years and is very likely to grow even more in the future now that we talked about the benefit of the bitcoins let's talk about some common concerns around bitcoins bitcoin is hard to use and inconvenient that's true right now you just can't buy a cup of coffee with bitcoins it is indeed not as convenient as your credit card at the moment can i get a small latte with dairy-free cream and a drop of honey i'm paying with bitcoins sure absolutely it's pending still pending aside from bitcoin having long validation time online banking companies such as paypal and square can already trade bitcoins on their platform and big tech companies such as microsoft and tesla are also accepting bitcoins as a payment method as well so slowly bitcoin will be easier to trade and it will be more relevant to our daily lives bitcoin is too expensive i don't have 30k to invest that's not true you can invest in bitcoin with just one dollar if you want to you don't need to buy a whole coin you can even buy 100 millionth of a bitcoin called satoshi named after bitcoin's creator satoshi nakamoto bitcoin is not safe well technically it is actually way safer than your credit card due to its blockchain property everyone is a regulator for a hacker to successfully alter a block he will have to hijack 50 percent of the miners computers from all over the world at the same time trying to solve insanely hard math equations on those computers let's just say the hacker is better off robbing a bank rather than hacking the bitcoin server bitcoin is being used for crime and scams so are guns and money don't blame the tools teach people how they work and that's what i'm doing bitcoin will never be the mainstream that's what people say to internet in the 1990s and bitcoin is literally the internet of money maybe you can still live without internet to this day but you're just turning a blind eye to the future alright guys hopefully now you understood bitcoin a little bit better that's it for today hope you liked the video i'll be making more videos on cryptocurrency and stocks in the future if you enjoyed this video please like and subscribe and i'll see you in the next video
