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, how to avoid losing money trading bitcoin?

Son: Hi Dad,

Best would be not to trade at all.

Dad: The trend is upwards. Why not trading it?!

Son: Bitcoin is like digital gold.

It's harder, stronger, faster and smarter than any money that has preceded it. Bitcoin is far too valuable to bet on it.

Dad: Valuable – that's exactly why I want more of it.

Son: Greed will cause pain. ;-)

#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, what about ETH, XRP and Doge?

The media are very positive about them.

Son: Hi Dad,

These are all shitcoins, and shitcoins are true parasites.

I would not catch one.

#Bitcoin

Dad: Son, what are "HD Bitcoin Wallets"?

Son: Dad, by definition, wallets are private key and public key management systems. In the beginning, every key pair used had to be backed up individually. That's why many have reused addresses, which is bad for privacy, as you know.

BIP-32 made Bitcoin better and introduced "HD wallets", which stands for "Hierarchical Deterministic", and not for "High Definition". With this BIP, it's possible to generate multiple addresses (public/private key pairs) derived from a single source of random data (=entropy).

Dad: Why was this introduced in the first place?

Son: It makes backing up the random bits of data much easier and safer, especially if combined with BIP-39, which introduced the mnemonic seed words, which is just entropy in a human-readable form.

#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, 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, is it "cool storage" or "cold storage"?

Son: Hi Dad,

It's "cold storage".

The term does not matter, as long it's "your storage" and "your storage" is offline.

#Bitcoin

Dad: Son, is bitcoin for individuals only?

Son: Hi Dad,

No, not at all! Bitcoin is not only for individuals. Publicly traded companies own bitcoin too.

Dad: Can you name a few?

Son: Visit https://bitcointreasuries.net and find out for yourself.

Dad: Impressive. These companies hold huge amounts!

Son: It's just the beginning. More will follow, imagine what happens then. Oh, and did you notice that countries are on that list as well?

#Bitcoin

Son: Dad, when in comes to Bitcoin, there are two things you have to control.

1. Your emotions

2. Your private keys

Dad: Son, it is simple, but not easy.

#Bitcoin

Dad: Son, what do you want for your birthday?

Son: Dad, I already have everything. :)

Dad: Tell us, what would make you happy?

Son: Bitcoin

Dad: The same thing again and again? Nah. What else?

Son: It's not "the same". Every UTXO is unique, and the transaction will live on the timechain forever.

Dad: Like a diamond. Diamonds are forever...

Son: Bitcoin is actually forever.

#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

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

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

Son: Dad, volatility is _______________.

Dad: Son, that must be "nerve-wracking".

Volatility is nerve-wracking.

Son: For me, volatility is "the price for being early".

#Bitcoin

Son: Good morning, Dad.

Bitcoin is in top form today,

as yesterday,

and the day before.

I hope you are as well.

Dad: Son, good morning!

There is nothing to complain about. :-)

#Bitcoin

Dad: Son, how long does it take to pay using Lightning?

Son: Hi Dad,

A LN payment takes only a fraction of a second.

Dad: Wrong!

Although payments take only a couple of seconds, you usually need at least two minutes to discuss with the counterparty how fucking awesome the Lightning Network is.

Budget your time accordingly, son!

Son: LOL. Thanks for your advice, Dad. :-D

#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

Dad: Son, is the "Bitcoin Halving" necessary?

Son: Hi Dad,

Yeah, the halving is necessary. This is how Bitcoin controls its supply.

Once the block subsidy expires, transaction fees will pay miners for securing the network.

#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