Son: Dad, do you know that the next halving is estimated at the end of March 2024?
Dad: Son, they are going to cut my portfolio in half?!
Son: First, there is no "they", Dad, and, second "no".
Bitcoin is a protocol, and the protocol does its thing. One of those things is the "halving" that happens every 210,000 blocks.In the 2024 halving, the block reward will drop from 6.25 BTC per block to 3.125 BTC.
Dad: I remember again. With each new block, new coins are put into circulation. This happens every 10 minutes.
Son: Every 10 minutes on average. The halving brings a significant decrease in fresh supply.Think about how precious each and every unit of Bitcoin is.
#Bitcoin
Son: Dad, dying young is not a retirement plan.
Get some bitcoin.
Dad: Nah.
Son: You can buy a fraction of a bitcoin.
Dad: Son, hell, no!! Uhm, I meant yes.
No, on the retirement thing.
Yes, get some bitcoin.
#Bitcoin
Dad: Son, I have many small transactions in my wallet. How can I reorganize these for more efficiency?
Son: Hi Dad,
I agree that having an optimized UTXO set is a good idea, but you shouldn't link the transaction history by sending all your funds to a new address.
You could mix your coins using a mixing service, or just combine the UTXOs from the same source.
Dad: How should I know which UTXO can be mixed?
Son: Privacy starts with proper coin control.
From now on, label each UTXO with the payment reason and the sender's name. This helps for further processing.
#Bitcoin
Dad: Son, what is an "Epoch" in Bitcoin?
Son: Hi Dad,
With a "Bitcoin epoch" people usually mean a period of roughly 4 years (210,000 blocks and about 10 minutes between them) with a specific mining reward.
The first epoch started with the genesis block in 2009, and a block reward of 50 bitcoin.
From May 2020 until some time in 2024, we're in the 4th mining epoch, and the block reward is at 6.25 bitcoin per block.
Dad: I see a bitcoin supply squeeze coming.
Son: Dad, me too.
#Bitcoin
Dad: Son, I am reading the "Bitcoin white paper" right now and try getting my head around this:
"The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work."
Son: Hi Dad,
A "hash" is like a "digital fingerprint" of any collection of data. Each new fingerprint builds on a previous one and adds a chain link segment.
Dad: Bitcoin seems to be a very sophisticated system.
Son: Dad, that's just the tip of the iceberg.
#Bitcoin
Dad: Son, understanding what Bitcoin is, is damn hard. Explaining it to someone else is even harder.
Have you tried?
Son: Dad, you're absolutely right on that.
Aside from the fact that Bitcoin is different things to different people, the term "Bitcoin" is also used equally for different things.
Dad: The confusion is immense.
Son: "Giacomo Zucco" tweeted no long ago, "Bitcoin's Layer 1 Protocol (BP) is about time. Bitcoin's Layer 2 Protocol (LNP) is about space."
I really like the concept of "BP" and "LNP". Dad, what do you think comes on top of "LNP"?
#Bitcoin
Dad: Son, is it possible to sell Bitcoins?
Son: Hi Dad,
Yes, it's possible.
Most exchanges that let you buy bitcoins also let you sell bitcoin, for a fee, of course. So, ...
Could you sell? Yeah, sure.
Should you sell? Hell, no!
#Bitcoin
Dad: Son, who is the CEO of Bitcoin?
Son: Hi Dad,
There is no "CEO of Bitcoin".
Bitcoin is an open, collaborative project that no company or government controls, belonging to the people.
Dad: Son, but someone must have launched it.
Son: Satoshi Nakamoto is the presumed pseudonymous person or group who developed bitcoin, authored the bitcoin white paper and launched the network.
#Bitcoin
Son: Dad, you don't have to be an expert to buy bitcoin.
Dad: ... the expert said. ;-)
#Bitcoin
Son: Dad, did you know there are 241 valid seed phrases that contain only the same BIP39 word?
Dad: Son, it must have taken hours to test them all.
Son: LOL, no Dad, I used a little Python script for that.
Interestingly, the longer the seed (12, 15, 18 vs. 24 words), the fewer valid combinations there are. Of course, these seeds are for fun and testing ONLY!
Dad: Interesting! 24x bacon is my personal favorite. :-)
Son: Damn, I was just going to use that seed. ;-)
#Bitcoin
Son: Dad, I should have paid more attention to Bitcoin in the beginning and I should have bought more.
Dad: Son, don't blame your past.
Be grateful for what it taught you.
I could say the same...
Now I am just glad I changed my mind on Bitcoin and saved my savings.
#Bitcoin
Dad: Son, what is the first thing you need to do if you want to get into Bitcoin?
Son: To "start" would be a good idea, Dad. ;-)
But before you start using Bitcoin get informed. There are a few things that you have to know to use it securely and avoid common pitfalls.
You have to secure your wallet yourself.
Payments are irreversible.
Unconfirmed transactions aren't secure. Depending on the value, you are waiting for one or more "confirmations". Oh, and the exchange rate is volatile.
Dad: So, there is no customer service that can help?
#Bitcoin
Son: Dad, bitcoin is black market money.
#Bitcoin
Dad: Son, what is Bitcoin's main use case?
Son: Hi Dad,
Use Bitcoin to run a global system of value and settlement.
This is no different than what gold was for 2,000 years and/or what the US dollar has been for the last 70 years or so.
Dad: So, is it both, the "value" and the "settlement"?
Son: Yes, both. And much more ...
#Bitcoin
Dad: Son, what are "sats"?
Son: Hi Dad,
Sats are like bitcoin, just smaller.
Dad: Smaller?
Son: Yeah, a smaller denomination.
There are 100,000,000 sats in every bitcoin.
#Bitcoin
Son: Hi Dad,
Just a note regarding Bitcoin transaction fees.
Do not overpay them...
By reducing the fee you pay, you almost always reduce the fees other users have to pay.
Dad: Son, makes sense, if one is not in a hurry.
Son: Everybody wins, except the miners.
#Bitcoin
Dad: Son, queston arr you a bitcorn millionaire??
Son: Hi Dad,
Hell no, I wish.. BUT NO!! You're drunk Dad?
Dad: Nooo. Just havin a few drinks with olf friends
Doing some moooon math and fooling around..
Son: Take care of yourself and respect OPSEC rules!
Don't be a loudmouth and protect our privacy!
Enjoy the fact that you understood it early on.
Dad: You ar right, son. I am sooorry. :-(
#Bitcoin
Dad: Son, my balance hardly changes.
Son: Hi Dad,
Stacking slowly?
It's okay, but never stop.
#Bitcoin
Son: Dad,
Bitcoin has died more often than Kenny from South Park.
Dad: Son, who is Kenny?
#Bitcoin
Dad: Son, drinking less alcohol is a great way to save money. Drink less, invest more.
Son: Hi Dad,
I wish you mentioned this 20 years ago.
For max stacking performance, skip the sip.
#Bitcoin