Introduction to Bitcoin

Easiest way to buy bitcoin (bank transfer): In this tutorial I explain Bitcoin and demonstrate how to get st…
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Stefan Molyneux explains what may become the currency of the future.

50 thoughts on “Introduction to Bitcoin”

  1. Team Elite Enterprises Productions

    Very informative! As of 1:20 pm EST December 28, 2013, one Bitcoin equals
    US$773, according to If you go to and enter the quote
    MTGOXUSD, you can find the current exchange rate of Bitcoin/USD.

  2. Bits and Barbarism
    Published: December 22, 2013

    This is a tale of three money pits. It’s also a tale of monetary regress —
    of the strange determination of many people to turn the clock back on
    centuries of progress.

    The first money pit is an actual pit — the Porgera open-pit gold mine in
    Papua New Guinea, one of the world’s top producers. The mine has a terrible
    reputation for both human rights abuses (rapes, beatings and killings by
    security personnel) and environmental damage (vast quantities of
    potentially toxic tailings dumped into a nearby river). But gold prices,
    while down from their recent peak, are still three times what they were a
    decade ago, so dig they must.

    The second money pit is a lot stranger: the Bitcoin mine in Reykjanesbaer,
    Iceland. Bitcoin is a digital currency that has value because … well,
    it’s hard to say exactly why, but for the time being at least people are
    willing to buy it because they believe other people will be willing to buy
    it. It is, by design, a kind of virtual gold. And like gold, it can be
    mined: you can create new bitcoins, but only by solving very complex
    mathematical problems that require both a lot of computing power and a lot
    of electricity to run the computers.

    Hence the location in Iceland, which has cheap electricity from hydropower
    and an abundance of cold air to cool those furiously churning machines.
    Even so, a lot of real resources are being used to create virtual objects
    with no clear use.

    The third money pit is hypothetical. Back in 1936 the economist John
    Maynard Keynes argued that increased government spending was needed to
    restore full employment. But then, as now, there was strong political
    resistance to any such proposal. So Keynes whimsically suggested an
    alternative: have the government bury bottles full of cash in disused coal
    mines, and let the private sector spend its own money to dig the cash back
    up. It would be better, he agreed, to have the government build roads,
    ports and other useful things — but even perfectly useless spending would
    give the economy a much-needed boost.

    Clever stuff — but Keynes wasn’t finished. He went on to point out that the
    real-life activity of gold mining was a lot like his thought experiment.
    Gold miners were, after all, going to great lengths to dig cash out of the
    ground, even though unlimited amounts of cash could be created at
    essentially no cost with the printing press. And no sooner was gold dug up
    than much of it was buried again, in places like the gold vault of the
    Federal Reserve Bank of New York, where hundreds of thousands of gold bars
    sit, doing nothing in particular.

    Keynes would, I think, have been sardonically amused to learn how little
    has changed in the past three generations. Public spending to fight
    unemployment is still anathema; miners are still spoiling the landscape to
    add to idle hoards of gold. (Keynes dubbed the gold standard a “barbarous
    relic.”) Bitcoin just adds to the joke. Gold, after all, has at least some
    real uses, e.g., to fill cavities; but now we’re burning up resources to
    create “virtual gold” that consists of nothing but strings of digits.

    I suspect, however, that Adam Smith would have been dismayed.

    Smith is often treated as a conservative patron saint, and he did indeed
    make the original case for free markets. It’s less often mentioned,
    however, that he also argued strongly for bank regulation — and that he
    offered a classic paean to the virtues of paper currency. Money, he
    understood, was a way to facilitate commerce, not a source of national
    prosperity — and paper money, he argued, allowed commerce to proceed
    without tying up much of a nation’s wealth in a “dead stock” of silver and

    So why are we tearing up the highlands of Papua New Guinea to add to our
    dead stock of gold and, even more bizarrely, running powerful computers
    24/7 to add to a dead stock of digits?

    Talk to gold bugs and they’ll tell you that paper money comes from
    governments, which can’t be trusted not to debase their currencies. The odd
    thing, however, is that for all the talk of currency debasement, such
    debasement is getting very hard to find. It’s not just that after years of
    dire warnings about runaway inflation, inflation in advanced countries is
    clearly too low, not too high. Even if you take a global perspective,
    episodes of really high inflation have become rare. Still, hyperinflation
    hype springs eternal.

    Bitcoin seems to derive its appeal from more or less the same sources, plus
    the added sense that it’s high-tech and algorithmic, so it must be the wave
    of the future.

    But don’t let the fancy trappings fool you: What’s really happening is a
    determined march to the days when money meant stuff you could jingle in
    your purse. In tropics and tundra alike, we are for some reason digging our
    way back to the 17th century.

  3. I just caculated,if you use bit coin generator every time you generate for
    free you get 0.00000002 bitcoins,if you want to procces your pc for 2
    bitcoins you will need 100 000 000 times to click generate button ,that is
    every time about 1 hour!

  4. Hi guys, I have two things to ask, I like Mt Gox, but is there any good
    sites just like that where I don’t have to show proof of ID where I can
    still use an PayPal alternative to transfer my BitCoin too or from that
    site? Also Dwolla is a US only site, unlike PayPal. Is there an alternative
    to PayPal and Dwolla site that would still allow me to transfer my

  5. Hello Youtubers,
    I’m looking for a job, but i don’t found.
    I tried to create two company, but already failed two times.
    So now, i ask your help.
    Please, send me some BitCoins, the amount you want, everything will help.
    My adress : 1GNrEA7nkSuanj5HfgtEdAJEXCWLrspKbW
    Thank you very much, god bless you all.

  6. False. There is a central monitoring system, a network of computers, who
    keep track and maintain the distributed system. It keeps records and
    properties of all computers and users that are a part of the network,
    otherwise you wouldn’t be able to be aware of the others and their
    accounts. It’s made to record how many computers and users there are

  7. Bitcoins = computer resources So what if technology gives from one day to
    the other new supercomputers? quantum or nanocomputers or whatever? All
    your old and costly bitcoins will worth nothing. What if a science labs
    guy, testing new supercomputers creates hundreds of anonimous bitcoins?
    That is absurd all about Bitcoins

  8. @GeorgeeRobson yeah that video doesn’t say shit other than, we gonna use
    machines to make everything, and have everyone fill out a survey to see
    what they like best, and by magic engineers are going to determine the best
    way to make the machines and magically know the best way to make the
    machines do w/e they are supposed to do. Oh and ofc we can’t use money,
    that is like some god awe full sin. seriously the video is nonsense empty
    rhetoric. The only thing they got right is its all voluntary.

  9. @FreedomAtRisk you have the brain of a snail. hater or educated critical
    analyst? call me a hater but what point does that prove in the further
    understanding of what you believe to be of value? with no oil, you cant
    make computer batteries and computer parts so how would you manage moneys
    of a computer based system? its a valid point. if you believe im supporting
    his point, make a substantial knowledgeable reply. your system is based on
    oil goods, can you deny that? ignorance much?

  10. Money isn’t real. Yes it is (Used to be “Backed”) but in sense its a piece
    of paper exchange for goods and services. Capital will be needed in one way
    or another for goods and services. To say Money is real is laughable. All
    you need is a hard day of work, a beer, and a nice relaxing night of sleep.

  11. People who say that this currency is imaginary forget that ALL currency is
    ‘imaginary’. The problem with the current currency is that it is CORRUPT.
    It can be printed/digitally created at will. When you come to pick it up
    your money, they say “Whops, we don’t actually have that money”. Then they
    file for bankruptcy and get even more money from you through bailout.
    Bitcoin already has footing and will make central banks obsolete. Which is
    why banks will do EVERYTHING to convince you otherwise

  12. tkabat1983… Lol take it you have heavily invested in fiat currency or
    something? What is so shit about getting rid of banks and their control
    over you through money? Taking back control from the governments!? What is
    shit about empowering yourself?… I think the only thing that’s shit round
    here is your comment!

  13. @GeorgeeRobson so the people decide? sounds like a market to me, but if
    they do it more directly, is everyone going to calculate opportunity costs?
    and you still haven’t said how this is done, and without it you could be
    putting resources to bad use. How determines whats best for everyone? and
    by what standard? standardizing everything to equality doesn’t even touch
    this issue. Oh and everything has an opportunity cost, to eat you have to
    live with not helping starving people over seas.

  14. @RustyKalashnikov It’s a voluntary currency. Don’t like it? Don’t use it.
    What’s wrong with a competing currency? Especially in light of a coercive,
    monopolistic, inflatable currency by decree that enriches a select few?
    Don’t guess about me on that last statement – search. Warning: you’ll eat

  15. @salsa20 So you’re either too stupid to know what a ponzi sheme is, or
    you’re more likely a detractor working for the Federal Reserve, because
    ponzi sheme only refers to investments, and bitcoins aren’t investments but

  16. @chronikful You sound off your rocker; calling me an idiotic Neanderthal,
    then to justify this proposition you link future oil shortages with
    computer parts as a reason why bitcoin can’t work.. I think it would be a
    good idea for you to seek out a therapist.

  17. @RustyKalashnikov There is no digital bank and no way to track transactions
    to tax. Your supply of bitcoins is simply a computer file. Like any other
    good, it’s up to you to protect it – whether you store it encrypted locally
    or in a cloud. The exchanges are done p2p – no middleman, no central
    authority, no coercion. It’s entirely decentralized and voluntary.

  18. portadorde nanismo

    As we become more dependent of the internet in the future (Michio Kaku
    speaks on how internet will become “invisible” and “omnipresent” through
    widespread wireless conections and augmented-reality
    glasses/implants/lens.) internet will become more available everywhere. 20
    years ago the idea of getting internet on a Café or Airport would be
    inconceivable, and today it is a reality. If you get disconected by the
    government, just drive to a Starbucks or use your phone’s internet.

  19. i here that obama will pay you too bitcoins if you vote for him, im voting
    twice!!!11!!!! i here that michelle obama will pay you too bitchcoins if
    you vote for her husband, im voating thrice!!!!!!two@@

  20. Alfie Scarborough

    digital money is bad. the government could disconnect people, like pykies
    who do not have any national insurance numbers. You could do something
    wrong and just get disconnected, you would not be able to do anything!

  21. muy de acuerdo con Terry, si te convence adelante, si no, olvídalo y sigue
    tu camino. para los interesados en Bitcoin, hay una aplicación muy buena
    que encontré en internet, utilizaba BTCbalance pero tenia algunos problemas
    con la cartera, estas pequeñas imperfecciones las tienes cubiertas con
    bitbalance esta aplicación para android te permitirá seguir y gestionanr
    tus balances en tiempo real, es muy bueno.

  22. @salsa20 The transactions are anonymous if you keep your personal info
    separate from the public key associated with the transaction. If you have
    to expose your personal info – e.g. mail an item in exchange for Bitcoins –
    use a different public key for the transaction. If you want to keep your IP
    and thus, your ISP and personal info separate from the transaction, execute
    the transaction through a VPN or proxy service such as TOR.

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