Dad: Son, how does Taproot make Bitcoin fungible?
Son: Hi Dad,
With Taproot/Schnorr, all on-chain transaction outputs for spending look the same.
Dad: All transaction outputs? Even multisig??
Son: Yes, multisig and opening or closing lightning channel look like any other normal Bitcoin transaction. There are no more "multisig m of n" labels shown in the Block Explorer.
Users can combine signatures into one key and use it as programmable funds, also known as "smart contracts", without identifying the purpose, which improves both privacy and fungibility. The best is, these transactions are smaller and cheaper.
#Bitcoin
Dad: Son, how to get my coins off exchange?
Son: Hi Dad,
Your way to success:
https://t-m-b-s.com/get-off-exchange
#Bitcoin
Son: Dad, Bitcoiners are just a different lot of people.
They think different.
They act different.
They spend different.
They are different.
Dad: Son, that is pretty obvious to me.
But why?
Son: Because of Bitcoin, Dad.
#Bitcoin
Dad: Son, what is "Cold Storage" exactly?
Son: Hi Dad,
"Cold storage" is a general term for different ways of securing bitcoins offline. Your signing keys are disconnected from the internet.
Dad: So "BlueWallet" must be a hot wallet?
Son: Yes. It's connected to the internet. This is perfectly fine for daily transactions and smaller amounts.
For storing funds long term, use a dedicated hardware wallet like the "Coldcard" or the "Passport". However, multisig – a "signing combination" of various wallet – would be the best solution.
#Bitcoin
Son: Dad, don't trust everything you see.
Even salt looks like sugar.
Dad: Son, what do you want to tell me?
Son: Use your Umbrel node to verify if your bitcoin is real bitcoin – or you will be salty in the end.
#Bitcoin
Dad: Son, what do you mean by "stacking sats" exactly?
Son: Hi Dad,
To me, "stacking sats" is the act of converting an inferior asset into a superior one, namely bitcoin.
Because stacking sats is done often and mostly on a regular basis, this result is a fraction of a bitcoin, measured in "sats".
One bitcoin can be divided into 100,000,000 Satoshis, or "sats" for short.
Dad: Son, let us stack some sats together!
#Bitcoin
Son: Dad, there is no such thing as over-production in Bitcoin.
Dad: Son, what about under-consumption?
Son: In a free market, everything is in perfect balance.
#Bitcoin
Dad: Son, I want one of those 21M Bitcoin so bad!!!
Son: Hi Dad,
I can understand this desire! One thing you should know: There will never be 21M BTC.
Dad: Why not 21M Bitcoin? Was I lied to?
Son: No, no one was lied to. Here is why: The block 501726 was generated without reward (-12.5 BTC), and block 526591 with half a reward (-6.25 BTC)
Also, the 50 BTC in the Genesis Block can't be spent, even if Satoshi comes back.
On top of that, ~4 million BTC have been lost. Well, those coins existed, but were lost. Maybe one or the other Satoshi will find its way back into circulation. However, keep stacking sats.
#Bitcoin
Son: Dad, you can spend a fraction of a bitcoin.
Dad: Son, no, thank you. That is out of question.
Son: The question is: What is your unit of account.
#Bitcoin
Dad: Son, dollar gains from stocks, bonds and ETFs have distracted me from how powerful Bitcoin is.
Then I was distracted about the increasing dollar value of my sats.
It took me a while...
Son: Hi Dad,
This happens to most people.
As long as you don't fall into the shitcoin trap, you're already one step ahead of many.
#Bitcoin
Son: Dad, I just bought bitcoin. AMA.
#Bitcoin
Dad: Son, what about "paper wallets"?
Son: Hi Dad,
Don't use them nowadays. These paper wallets are considered unsafe for various reasons.
Dad: What should I use instead? Any suggestions?
Son: "Opendimes" are today's paper wallets.
This is a very safe and effective way to generate a uncompromised private key.
Dad: And then I load the private key into BlueWallet?
Son: If you want to move your funds, then yes.
#Bitcoin
Dad: Son, Bitcoin is like water.
Son: Hi Dad,
Yes, but also...
Bitcoin is like a sponge that soaks up value over time, only to release it when needed.
Dad: Okay, let's agree on "Bitcoin is."
#Bitcoin
Dad: Son, what does m/44'|48'|84'/0'/0' mean?
Son: Hi Dad,
It's a "derivation path" and it describes how your Hierarchical Deterministic (HD) wallet derive a specific key within a tree of keys.
For example, if you want to get the next address from a wallet, it just increases the last number by one.
Dad: So this means that all receiving addresses are already known when the wallet is created?
Son: All receiving addresses, all change addresses, all accounts and much more are known from the beginning. Everything is derived from your 12 or 24 seed words using a derivation path.
#Bitcoin
Dad: Son, why do your siblings still have no Bitcoin position?
Son: Hi Dad,
Good question....
I talked to them again and again and again about it, last time at the latest all-time high.
I will do it again, at the next all-time high, every all-time high until they get some sats.
Dad: Let us hope that the next all-time high will not be long in coming.
#Bitcoin
Dad: Son, why do you not use numbers based the word’s indexed number in the BIP39 list instead of the first 4 letters of the recovery word?
Son: Hi Dad,
That's a good question. Let's quote the BIP39 creators to answer it.
"A mnemonic code or sentence is superior for human interaction compared to the handling of raw binary or hexadecimal representations of a wallet seed. The sentence could be written on paper or spoken over the telephone"
I think it is wrong to use numbers when the creators intentionally designed the standard so that we use words.
Dad: Ok, makes sense. Thanks.
#Bitcoin
Dad: Son, the market capitalization of gold is huge.
Son: Hi Dad,
Yes, but Bitcoin will surpass the market cap of gold and eat all its monetary value very soon.
Dad: Maybe.
But it will take a generation or two before Bitcoin will make gold irrelevant.
Son: A generation or two of new Bitcoiners, yes.
What if Bitcoin will make gold irrelevant within 5 years or so???
#Bitcoin
Dad: Son, who works actually on Bitcoin to make it better and would "doing nothing" make it worse?
Son: Hi Dad,
Everybody can help to make Bitcoin better.
Nobody can make Bitcoin worse.
#Bitcoin
Dad: Son, how do you know Bitcoin has a hard cap of 21M BTC?
Son: Hi Dad,
It's defined in Bitcoin's source code.
Dad: The question is: How do you know that hard cap will stay 21M?
Son: The answer is: Because of game theory.
Who would want to join a Bitcoin chain with modified hard cap?
That would no longer be Bitcoin.
#Bitcoin
Dad: Son, what exactly is "difficulty adjustment"?
Son: Hi Dad,
The "difficulty adjustment" is why Bitcoin will never die.
The more people are mining, the harder it gets to find a new block and vice versa. This ensures that, on average, a new block is found every 10 minutes.
Dad: Son, literally no one outside of Bitcoin knows or understands what the "difficulty adjustment" is.
Son: Weightlifters maybe do.
#Bitcoin