Dad: Son, are the last 16 digits of π a good passphrase?

Son: Lol, Dad, that's hilarious.

#Bitcoin

Dad: Son, how many Bitcoins does, or did, Satoshi have? Many, I am certain, since he was early. ;-)

Son: Hi Dad,

Some estimate Satoshi had around 980,000 bitcoins. This number is heavily debated, though.

Dad: Estimate based on what? Why do we know that?

Son: The blocks mined by Satoshi have a special pattern, like a fingerprint.

We do not know who Satoshi was, but we know with high probability the number of bitcoins he had. Satoshis' coins never moved and are considered lost forever.

I'm pretty sure even Satoshi felt short bitcoin. ;-)

#Bitcoin

Dad: Son, what stands the term "RBF" for?

Son: Hi Dad,

"RBF" stands for "Replace By Fee". "RBF" allows to replace a stucked or unconfirmed transaction with a new one that uses a higher fee.

Dad: Son, this seems a useful feature to save fees.

Son: Yes.

Please note that the "replacement" transaction uses the same inputs as the original one.

#Bitcoin

Dad: Son, since most of us cannot afford Bitcoin – is "Bitcoin Cash" still a good deal?

Son: Hi Dad,

"Bitcoin Cash" is trash. This is not bitcoin.

You can buy one dollar worth of bitcoin.

#Bitcoin

Son: Bitcoin is good for you.

#Bitcoin

Dad: Son, having kids does not make you a father.

Raising them does.

Son: Dad, buying bitcoin doesn't make you a Bitcoiner.

Holding your keys does.

#Bitcoin

Son: Hi Dad,

"Not stacked sats are not realized wishes."

People don't quite understand how immoral that is if they already heard of Bitcoin.

Dad: Son, something like the lack of self-care?

Son: Yes, you can look at it that way too.

Or in other words: If you don't stack these Satoshis, you're stealing from your future.

#Bitcoin

Dad: Son, tell me something interesting about "Bitcoin Transactions".

Son: Hi Dad,

Ok. A "Bitcoin Transactions" can consist of many inputs and many outputs. The inputs are outputs of previous transactions which you want to spend, and each output has values assigned to an address.

In general, a transaction is expected to have 2 outputs, the "destination address" and the "change address".

Dad: So, the remainder of the funds are moving on chain as well?

Son: Yes, you always have to move the whole unspent transaction output, also known as "UTXO" or coin.

#Bitcoin

Son: Dad,

Bitcoin does not over-promise nor under-deliver.

Bitcoin simply does its thing.

Everyone knows the rules, and you must follow them if you want to use Bitcoin.

Dad: Son, and you can count on these rules!

This is a wonderful and powerful thing.

Son: Bitcoin is "Rules without Rulers".

#Bitcoin

Dad: Son, I have seen into the future.

The value of governmental paper bills will continue to go down from here.

Son: Hi Dad,

I have also seen into the future.

I see Bitcoin.

Bitcoin is the brighter future.

#Bitcoin

Son: Dad, do you know how to get the most value out of a gold coin?

Dad: Son, I have no idea....

Son: Flip it 256 times to generate 256 bits of entropy and convert that entropy into a BIP-39 seed.

#Bitcoin

Dad: Son, do you have a good Bitcoin investment strategy you would like to share?

Son: Hi Dad,

Sure. Don't trade, don't sell – that's the strategy.

Holding bitcoin is savings, not investing.

People with a high time preference will invest their fiat money seeking for fiat gains.

#Bitcoin

Dad: Son, why is relaying unconfirmed transactions from one Bitcoin node to others necessary?

Son: Hi Dad,

Nodes relay unconfirmed transactions they hear about to one another, and every node has its own, more or less synchronized, mempool.

If there was no mempool, there would be no way for miners to learn about unconfirmed transactions to include in blocks to begin with.

Dad: Why not send directly to the miners?

Son: It's important to think about each party's incentives and needs. Relaying transactions is not a waste, even if a node is not mining. Learning about unconfirmed transactions has value, for example while waiting for a payment.

#Bitcoin

Dad: Son, wait until the people who just want to be left alone get involved.

Son: Hi Dad,

What do you mean?

#Bitcoin

Dad: Son, did you know Bitcoin is connected to the butterfly effect?

Son: Hi Dad,

What's that?

Dad: Small events can have big consequences.

Like a tweet or an article can change its price.

Are you still buying Bitcoin?

Son: Stacking slowly.

I don't want to cause a hurricane in Texas, Dad!

#Bitcoin

Dad: Son, cam yuu hlp be to make a bitcorn paymentt?

Son: Dad, what's wrong? Are you drunk?!

Dad: Alk goood. coudl be, .. maybe jhst a little too muvh of that finee botttle, ..

Son: 4 things not to operate intoxicated:

1. Firearms

2. Heavy machinery

3. Vehicles

4. Bitcoin

That's my message for today, Dad. Talk tomorrow.

#Bitcoin

Dad: Son, you said that Bitcoins are mined. How can I do this with my computer?

Son: Hi Dad,

You cannot efficiently mine with your computer.

Bitcoin mining is done using special ASIC machines.

These machines are expensive, noisy, consume a lot of energy and beside producing bitcoins, these machines emits a lot of heat as by-product.

Dad: Bitcoin mining seems highly professionalized.

Son: Yes, but mining can also be done at home, despite high electricity cost, heat and noise emissions.

#Bitcoin

Dad: Son, what is a Bitcoin node?

Son: Hi Dad,

Bitcoin nodes act like counterfeit detection machines, verifying transactions and ensuring their legitimacy.

If a transaction is fraudulent, the nodes reject it, helping prevent fraud and keeping the network secure.

Dad: Do I need to run my own?

Son: If you could, you should.

If you don't run your own, you're simply using someone else's node.

#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

Dad: Son, this Bitcoin thing is overwhelming.

Can you present me a five-point plan of measures? I appreciate your help.

Son: Hi Dad,

Self sovereignty is tricky.

However, It's not black or white – it's a gradient.

Start and try to improve your setup over time.

Test it, find security holes, privacy leaks and fix them. Iterate over and over again.

#Bitcoin