00:01what if i told you there is a type of money that no government controls no bank owns and nobody
00:08can ever stop everyone has heard of bitcoin but most people have no idea how it works today i
00:15will explain everything in the simplest way before we talk about bitcoin let us go way back
00:21thousands of years ago people had no money they just traded things with each other but here is
00:27the problem what if you had fish but the person you wanted to trade with did not want fish no
00:32deal
00:33you are stuck so people came up with a smart idea they made small coins from gold everyone agreed
00:40these coins had value now trading became super easy gold coins were really heavy so governments
00:46made paper money instead and banks promised that this paper was worth real gold kept safe inside
00:53but governments broke that promise they took the gold away now they print money whenever they want
00:59that is why everything keeps getting more expensive every year 2008 while banks were crashing a mystery
01:07person named satoshi nakamoto created bitcoin shared it with the world then disappeared forever so what
01:14is bitcoin it is digital money it lives on the internet you cannot touch it there are no coins or
01:20paper
01:21just code here is the biggest deal about bitcoin there is no bank in the middle you send it straight
01:29to
01:29the other person fast direct no fees but if there is no bank who keeps track of the money the
01:37answer is the
01:38blockchain a giant notebook that records every bitcoin transaction every 10 minutes a new page fills up with transactions
01:46when it is full it gets locked and the next page connects to it like a chain once something is
01:52written
01:53in the blockchain nobody can change it or delete it because thousands of computers all over the world
01:59hold the exact same copy you have probably heard of bitcoin mining it does not mean digging it means super
02:06powerful computers race to solve really hard math puzzles to check transactions the first computer to solve the
02:13puzzle wins the winner adds a new block to the chain and gets brand new bitcoin as a prize here
02:19is the
02:20biggest rule only 21 million bitcoin will ever exist that is it no more can ever be created the limit
02:28is locked
02:29think about gold or diamonds they are valuable because they are rare bitcoin is the same and every four
02:36years the mining reward gets cut in half to keep your bitcoin you use a digital wallet think of it
02:43like
02:44a piggy bank on your phone but only you hold the secret key when bitcoin started it was worth less
02:51than
02:51one penny today one bitcoin is worth over sixty thousand dollars but the price goes up and down a lot
02:58today bitcoin is used by regular people big companies small shops students families and even some whole
03:07countries have made it official money but you must know the risks the price can crash fast if you lose
03:13your
03:13private key your bitcoin is gone forever never share your key with anyone bitcoin is digital money limited open
03:20unstoppable and it belongs to everyone bitcoin is freedom if this video helped you understand bitcoin
03:27please hit the like button and subscribe share it with someone who needs to learn see you next time
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