Son: Dad, the coins nobody knows you have are worth more.
Privacy first.
Dad: This message self-destructs in 5, ...
#Bitcoin
Dad: Son, what is the difference between a Bitcoin address and a Bitcoin public key?
Son: Hi Dad,
That's a good question! An address represents a hash of a public key of an asymmetric key pair.
The owner of the key pair can use the private key to sign transactions or messages.
Dad: Why sign a message?
Son: For example, to prove ownership of an address.
Only by using the correct private key a valid signature may be created, which then anyone can verify as valid by using the associated address which, again, represents the public key.
#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
#Bitcoin
Son: Dad, whatever happens in the world.
Bitcoin does its thing.
Dad: Son, and what should that be?
Son: A new block – every 10 minutes on average.
#Bitcoin
Son: Dad, don't forget to invest in your friendships. Tell your friends about Bitcoin today.
Dad: Son, what is the easiest way to get someone to start using Bitcoin?
Son: Dad, onboarding friends to Bitcoin is like 1-2-3.
1. Install BlueWallet on friend's mobile phone.
2. Create a wallet and get a receiving address.
3. Scan the QR code and send $10 worth of sats.
Dad: So, it costs me $10 to orange pill a friend?
Son: Dad, orange pilling is priceless!
#Bitcoin
Dad: Son, when will all 21 million BTC be mined?
Son: Hi Dad,
All 21M bitcoins will be mined by 2140, but more than 98% will be mined by 2030.
Act accordingly and stack some sats today, tomorrow and the day after.
#Bitcoin
Dad: Son, what is a "PSBT"?
Son: Hi Dad,
"PSBT" stands for "Partially Signed Bitcoin Transactions".
It's a data format that allows wallets and other tools to exchange information about a Bitcoin transaction and the signatures necessary to complete it.
Dad: Ok, that is basically what makes air-gapped Bitcoin possible?
Son: Using a PSBT makes it possible to do this in a standardized way. The first version of PSBT (version 0) is described in BIP174 and PSBTv2 is described in BIP370. Nowadays, I wouldn't recommend a wallet not supporting PSBTs.
#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, what is "Hyperbitcoinization"?
Son: Hi Dad,
"Hyperbitcoinization is a voluntary transition from an inferior currency to a superior one, and its adoption is a series of individual acts of entrepreneurship rather than a single monopolist that games the system."
It's from the "Hyperbitcoinization" article written by Daniel Krawisz back in 2014. You can read it in full length and for free on the "Satoshi Nakamoto Institute" website.
Dad: Thank you, will add it to my reading list.
Son: The "Satoshi Nakamoto Institute" has published numerous other articles. Here is the link, https://nakamotoinstitute.org.
#Bitcoin
Dad: Son, when will you stop buying Bitcoin?
.. at 75K, 100K, 250K, ..?
Son: Hi Dad,
I'll be buying into bitcoin at 75K, 100K, 250K, 500K and onwards until any or all of the following occur:
a) Hyperbitcoinization
b) I run out of cash
Dad: Son, let us see what happens first.
Son: You will see, there is no alternative to bitcoin.
#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, 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
Dad: Son, tell me something interesting about BIP39.
Son: Hi Dad,
With pleasure. So, did you know that BIP39 is still a proposal, yet everyone is using it?
Dad: So its status is de facto "Final"?
Son: Yeah, you could say so.
#Bitcoin
Dad: Son, I do not know what is going on with people these days........
Son: Dad, what's going on?!
Dad: "trust the science" is the most anti science statement ever made.
Questioning science is how we did science!
Son: Gotcha. However, the following "trust related" Bitcoin mantras work perfectly for me.
"In numbers we trust."
"In math we trust."
"Don't trust, verify."
#Bitcoin
Son: Dad, Bitcoin is like Bamboo.
Dad: Son, what? Why should Bitcoin be like bamboo?
Son: Bamboo grows underground, unseen, for a few years with nothing valuable to offer the world.
The whole time was a period of preparation.
Growth in solitude. Once matured, in two months or so it grows upwards of 90 feet, towering over everything around it.
Okay, not "a few years with nothing valuable", but still Bitcoin is like bamboo.
Dad: That is a great analogy. It is also interesting to mention that bamboo that bends is stronger than the oak that resists.
#Bitcoin
Dad: Son, history teaches us that we do not learn from history.
Son: Hi Dad,
I understand the frustration with humanity repeating its mistakes, but I think history isn't just a mirror of our failures; it's a reflection of our potential. It shows that while we often stumble, we also have the capacity to grow, adapt, and improve. It's up to us to choose whether to repeat history or learn from it to create a better future.
And now, we have Bitcoin, a new chapter in the history that challenges the way we think about value, values and time.
#Bitcoin
Son: Dad, here's the four-point plan to not screw up with your bitcoin.
1. Never store a 12/24 recovery seed words online, not even encrypted
2. Never type a 12/24 recovery seed words onto any online device
3. Only enter the 12/24 recovery seed words directly onto a hardware wallet
4. Only record the 12/24 recovery seed words onto durable physical medium such as a Cryptosteel Capsule or a Cryptosteel Cassette.
Dad: Son, sounds like a plan.
#Bitcoin
Dad: Son, why taproot?
Son: Hi Dad,
Taproot hides non-default multisignature script paths in the collaborative case, it improves Bitcoin Lightning Network privacy and block space efficiency, makes Bitcoin fungible.
Dad: Oh, and what do a taproot addresses look like?
Son: bc1p...
#Bitcoin
Son: Dad, did you know that there are 1,461,501,637,330,902,918,203,684,832,716,283,019,655,932,542,976 Bitcoin private keys?
Dad: Son, guess which ones are mine. ;-)
Jokes aside.
How likely is it that someone could guess one?
Son: In short, extremely unlikely.
Dad: Extremely unlikely? So, it is possible?!
Son: Extremely unlikely because there are more Bitcoin private keys than atoms in the universe.
Dad: Okay, somehow reassuring.
#Bitcoin