#Bitcoin

Dad: Son, what are Mining pools? Son: Hi Dad, Mining pools are groups of miners that combine their computational power to increase the probability of finding new blocks. Dad: Compete in good company. Son: Yeah, that's it. #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

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

Son: Dad, two things: 1. Nobody has enough bitcoin. 2. Nobody understands Bitcoin completely. Dad: True things. #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, don't we need central bank digital money? Son: Hi Dad, Nah. Bitcoin makes sound money accessible to everyone. Also, CBDCs are a currency, not money. Bitcoin provides access to a simple, cost-effective, risk-free and trusted digital means of payment that is accepted all over the world. We don't need central bank digital currencies. #Bitcoin

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, 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, 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, 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, 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, what keeps two people from generating the same seed words? Son: Nothing, Dad, except gigantic numbers. This number is so large the human mind cannot comprehend its vast space. Think of every atom in the universe, it's almost that big. If nearly everyone on Earth started generating 1 million keys per second for 100 years, the chance to encounter a collision is still pretty much zero. Dad: Can one rest assured that as long as seed words are randomly generated, no two parties should ever generate a colliding key? Son: Yes, Dad. Vires in Numeris. #Bitcoin

Dad: Son, what do you answer to those who ignore bitcoin? Son: H F S P Dad: Son? Son: Dad, I would answer "Have Fun Staying Poor". Dad: This seems to be another formulation of WEF's "You'll own nothing, and you'll be happy" slogan. #Bitcoin

Son: Dad, you can spend a fraction of a bitcoin. Dad: Son, no, thank you. That is out of question. Son: The question is: What is your unit of account. #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, 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, dollar gains from stocks, bonds and ETFs have distracted me from how powerful Bitcoin is. Then I was distracted about the increasing dollar value of my sats. It took me a while... Son: Hi Dad, This happens to most people. As long as you don't fall into the shitcoin trap, you're already one step ahead of many. #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