I keep talking about Bitcoin to everyone around me, hoping that someday they will listen about Bitcoin again from someone and they will come to me to learn more.
As we all know Bitcoin is surrounded by a lot of scammers. Altcoins, ICOs, IEOs, Youtubers, “influencers” and whatnot.
Today one of my friends asked me if the Bitcoin price increased! I don’t remember when I talked about Bitcoin with him. Below is the conversation I had with him on how I helped him to get his first few satoshis and how I taught him some basics of Bitcoin. In past, I have introduced many of my friends to Bitcoin but this method looks most productive.
Earlier he was a complete newbie. I suggested him Samourai wallet. I gave him 100Rs~1.5$ worth of Bitcoin. I taught him how to increase transaction fee if he wants fast confirmation, why there will never be more than 21,000,000 Bitcoins and why Satoshis are precious.
Some day I will teach him what fiat currency has done to human society, why all fiat currencies are doomed to die and the bright future of humans with Bitcoin !!!
And here goes the conversation :
I: Give me 100Rs, I will give you that much bitcoin. Install Samourai app
He: I m installing
I: Be careful with passphrase (which u entered first) and the seed of 12 words. These both combined make your private keys. You will need both in case your phone gets lost. There is no forget password option. The best advice is to write down passphrase and 12-word seeds.
He: Got it wrote both on a piece of paper
I: Okay
He: What is Paynyms?
I: That is a little bit advanced. For privacy purpose. Later I will tell you about that. No need as of now. Just click on receive and send me address here in WhatsApp
He: K
He: 38ab*************************abcdE
He: Only 100 rs. 🤣🤣
I: How much you want? 1000Rs ? 10000 ? 100000?
He: Rs100 Only🤣🤣🤣
I: Just 100! Now you are getting salary.
He: Not now
I: Okay
He: Bro, not getting now. But will get soon
I: Send me an address. 1 BTC = 250000Rs in India as of today. Just search BTC to USD or BTC to INR. LocalBitcoin, WazirX are cheapest option to buy. Even better if you earn bitcoin. or buy from friends. Good for privacy.
He: Did u send it?
I: Nope. Wait
I: I will send you 0.0004 BTC
He: K
He: I will transfer 100 rs by Google pay
I: Sent
He: OMG got it
I: Don’t trust until you get 1 confirmation
He: Which one? I got a confirmation. In the app.
I: Nope. You have just received the transaction. Not confirmation. If you touch on the transaction, It will show 0 confirmation
He: Yes.
I: If I pay more transaction fees, miners will be more likely to include my transaction in the next block which they mine every 10 minutes on average.
He: Got it
I: If I want to cheat u, with 0 confirmation u r at risk. I can spend the same bitcoin to someone else with more transaction fees and that transaction will be confirmed and the earlier one will be rejected
He: Oh
I: Now uninstall the app, reinstall and see if you can recover from your passphrase and seed which you wrote on the paper.
He: What is this status unconfirmed?
I: Means 0 confirmation
He: Means u can cheat me now?
I: Yes
He: 🤣🤣🤣 👍🏻
I: But you have not paid me 100Rs
He: Already paid
I: Oh Received. Then I can cheat u
He: Yes got it🤣🤣🤣
I: 😅
He: I will never pay before I get a confirmation
He: 🤣
I: 👌👌👌 🤣
He: What will be there if the transfer is done? In place of 0
I: It will show 1 confirmation. Then 2. Then 3 and so on. Once you get 1 confirmation +1 every 10 minutes on average.
I: 1 bitcoin = 100,000,000 Satoshis Or sat
He: K
He: But I don’t understand how my confirmation will get to 1. It is still 0.
I: Check this out. https://jochen-hoenicke.de/queue/#0,24h There is real-time fee estimation website. Your confirmation is still 0. I paid only 1satosho/byte. It is morning in western countries and there is more no of transactions. One block of transactions which are mined every ~10 minutes has a limit of 1 megabyte. It can include ~3000 transactions. I think you will get your first confirmation after a few hours.
I: https://www.youtube.com/watch?v=PbhtHnBRyEQ
I: You can boost the fees if you are in a hurry or u don’t trust me 😜
He: 🤣
He: I reinstalled the app and recovered the bitcoin
I: You know how to boost the fees? Click on that transaction. It is optional at the bottom
He: Yes, What will happen after boosting the fee. Send me any links to learn more.
I: According to this fee estimation, if you boost up to 10sat/byte you will get a confirmation in next 2-3 blocks. That is ~ 20-30 minutes
He: Ok
He: No need I will wait
I: You greedy fellow
He: 🤣🤣🤣
He: Actually I don’t understand it completely. I need to spend some time😀
I: Bitcoin is complex. It took me months to understand technicals. You started just today. There is much more stuff to learn. Next step is to pay with the lightning network. That is the 2nd layer on top of Bitcoin. Instant confirmation of transactions. Lightning-fast. When you have time tell me. let me know. That is too much fun.
I: And no transaction fees with the lightning network. Or just a few satoshis as a fee
He: Definitely, wait sometime
I: 👍
He: Thanks 😊
I: ☺
I: One more thing. Mining reward to miners becomes half every four years. Initially, in 2009 at the birth of Bitcoin, it was 50 Bitcoin on every 10 minutes. Today it is 12.5. In 2020 it will be 6.25 and so on. There will never be more than 21,000,000 Bitcoin in total.
There are more millionaires than Bitcoin.
Each Satoshi is precious. ☺
He: 👍🏻
I: You got 1 confirmation 😃
Now nearly every ten minutes +1 confirmation. In perpetuity.
He: Yes. now it is 2
He: 3rd is remaining
I: But how does bitcoin actually work? https://youtu.be/bBC-nXj3Ng4 if you are looking at math behind Bitcoin
— — — — — END OF CONVERSATION — — — — — -
Some links I shared with him later are listed below:
For fee approximation :
Youtube channel 402 payment_Requried https://www.youtube.com/watch?v=PbhtHnBRyEQ
Johoe’s Bitcoin Mempool Statistics https://jochen-hoenicke.de/queue/#0,2h
Articles I suggested him to read in the future:
https://medium.com/@hugonguyen/how-cryptography-redefines-private-property-34cd93d86036
https://medium.com/@vijayboyapati/the-bullish-case-for-bitcoin-6ecc8bdecc1
Ever wonder how Bitcoin (and other cryptocurrencies) actually work? https://www.youtube.com/watch?v=bBC-nXj3Ng4&feature=youtu.be
Murad Mahmudov: The Ultimate Bitcoin Argument (Off the Chain with Anthony Pompliano) https://www.youtube.com/watch?v=UMK_A0mF8PQ
I think this conversation will be helpful to many.
If you liked it and were looking to me, here is the link https://checkout.opennode.co/p/1e546b7b-67ec-483b-90b8-8b816cdc55ee
My twitter id twitter.com/Ravi_21M
