Dad: Son, now that the cost of goods across all domains are increasing rapidly, I am curious if inflation ends in hyperinflation and what effect this will have on Bitcoin adoption and its price.

Son: Hi Dad,

Hyperinflation makes all sorts of goods and services essentially unaffordable for the majority of people, but I'm not speaking about bitcoin. ;) Hyperinflation will lead to Hyperbitcoinization. This is why:

Because bitcoin is the hardest money in the world, people will upgrade their "store of value" and just use bitcoin.For me, Hyperbitcoinization is here when prices are expressed in bitcoin, uhm, when prices are expressed in sats.

Dad: Son, in such a scenario, it would be impossible to measure bitcoin's value in dollars anyway.

#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, in addition to Bitcoin, you should invest in emergency supply. Buy water and stockpile food.

Get a hand crank radio.

You never know....

Son: Yes, Dad.

#Bitcoin

Son: Dad, two things:

1. Nobody has enough bitcoin.

2. Nobody understands Bitcoin completely.

Dad: True things.

#Bitcoin

Dad: Son, two bitcoin are better than one.

Son: Hi Dad,

That's true, but some is better than none.

#Bitcoin

Dad: Son, now I have two wallets and too many passphrases. What do you suggest?

Son: Hi Dad,

Get one more and go multisig.

#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, impressive how to pay with the lightning network in the blink of an eye.

Son: Hi Dad,

Spend your sats responsibly.

#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, owning a fraction of a Bitcoin is life-changing.

Son: Hi Dad,

I am not sure if your 200 bucks worth of bitcoin will be life-changing one day. ;-) But yes.

Dad: It is life-changing. I am reading more today and question the mainstream media more than ever.

Son: I truly agree, Dad. Many more things will change when you fall deeper down the rabbit hole.

Dad: Son, what changed for you?

Son: Everything – from steak to stacking SATs.

#Bitcoin

Dad: Son, when is the best time to buy Bitcoin?

Son: Hi Dad,

In the morning :)

#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, Bitcoin is Bitcoin because of bitcoin (BTC).

Dad: Son, once you understand that concept, you understand many Bitcoin concepts much better.

Son: Yeah, everything makes much more sense.

Dad: Sadly, it takes a huge effort to get there.

Son: Sadly? As if it was part of the plan. ;)

#Bitcoin

Dad: Son, the "Great Wave off Kanagawa" is incredible.

Son: Hi Dad,

Absolutely! It reminds me of Hyperbitcoinization.

Dad: Oh, you mean the wave symbolizes Bitcoin's immense transformative power?

Son: Exactly! Just like the wave disrupts the scene, hyperbitcoinization disrupts the world.

#Bitcoin

Dad: Son, who else can see my balances on the Bitcoin blockchain?

Son: Hi Dad,

Everybody can see yours and all other unspent transaction outputs (=UTXO) on the chain. The blockchain is a public ledger, and that's the point. The question is, which coins are yours? ;-)

Dad: Is this not a huge privacy issue?

Son: You will be fine if you use Bitcoin correctly.

Dad: Son, please define "used correctly".

Son: Use a new Bitcoin address each time you receive a new payment and consolidate your coins wisely.

#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, is Bitcoin real money?

Son: Hi Dad,

This depends on how you define the term "money"?

Dad: Honestly, I have no idea.

Until recently, I was unaware that there is a difference between "currency" and "money".

Son: Dad, unfortunately, few people know that.

Money is a "Store of Value", a "Medium of Exchange", a "Unit of Account" and a "System of Control". Therefore, bitcoin is the best form of money that we have ever known. However, we are still working on the "Unit of Account" thing.

#Bitcoin

Dad: Son, what is smart money buying right now?

Son: Hi Dad,

Smart money is buying hard money.

#Bitcoin

Son: Dad, I recently finished "How Innovation Works" by "Matt Ridley". Highly recommending it.

Dad: Son, interesting topic.

Why do you recommend it?

Son: Reading this book helped me not only understand how innovation works and why, in retrospect, Bitcoin was inevitable, but how the world works.

Dad: Okay, son, I added it to my Amazon wish list.

#Bitcoin

Dad: Son, I just got my Coldcard hardware wallet today.

The bag is really special. Pretty sure it has more security feature than a banknote.

Son: Hi Dad,

Not sure about that one. ;-)

But yes, the device seems well protected. However, I recommend you download the latest firmware from Coinkite, check it and install it on your Coldcard manually. And also inspect the device visually, and verify the bag number.

Dad: Son, why all the effort, it is "just a calculator".

Son: Haha. Anyway, I will send you a tutorial later.

#Bitcoin