Learning to Love Bitcoin

Bitcoin is confusing and complex. I love it. I’m fascinated by it. I think it will be instrumental in overturning many institutions and norms we take for granted. I believe it will make mechanisms of finance and dispute resolution, usually the purview of lawyers, accountants and other experts, available to ordinary people in much the same way that the printing press made knowledge freely accessible to any one able to lay their hands on a book. Its value cannot be overstated but damn it’s complicated.

When I first took an interest in bitcoin I thought that I would have sufficient background in computer science and economics to make heads and tails of this most unusual technology. What I encountered when searching online for an understanding was a multidisciplinary body of knowledge so daunting that I concluded that nothing that complicated would ever be adopted by the mainstream. It’s hard to call something a currency for the people if most of the people have little idea of what it is. There are forums, videos and wikis, don’t get me wrong. Everything you need to understand bitcoin is online. But it’s both scattered and unorganized for the most part. When trying to learn it, I found myself jumping from analogies made by journalists writing for major newspapers — simplified to the point of being useless— to forums frequented by experts in advanced cryptography. Trying to build a ground up understanding was certainly frustrating and often times I found myself giving up after having opened 30 browser tabs, each explaining in greater detail a term read on the previous tab.

From blood to bitcoin

It may be complex but what in this world isn’t? Just because something is complex doesn’t mean that only a small clique of experts can access it. After all, we all have some degree of knowledge of our own biology. We know that certain fats clog arteries and the role that arteries play in delivering oxygen rich blood to our cells. We know that our body is layered with a complex wiring of nerves. We all understand to some extent how food is processed or how viruses infect cells. But very few people understand these complex systems on a level sufficient to give them the ability to treat illness or injury. Yet a working knowledge of human biology is something most of us seem to take for granted. Why do we bother learning about our own biology if we have no intention of becoming a doctor? Because it is empowering. To manage your own health and to have a certain sense of how healthy you are enables you to take control of your living experience. Ignorance of your body leaves you open to the tyranny of mythology, demons and leeches. Biology gives us control over our bodies.

And so it is with bitcoin. Knowing how it works to whatever extent you’re comfortable with will open up a world of opportunity. It will empower you to take advantage of the most exciting innovation since the internet. It will allow you to take back control of your finances from the hands of financial experts and fund managers. Let me be clear: bitcoin is nowhere near as complex as the human nervous system so really, what is there to fear? If you think about your diet and exercise and how they’re affecting your ultra complex human body, you’ve already proven that you can think of something as simple a bitcoin. Like everything else bitcoin does not have to be understood at its most fundamental mathematical level to be appreciated and fully utilized.

The Cycle of Bitcoin

Sticking with the human biology metaphor, bitcoin is composed of a number of organs, so to speak. It’s not as simple as just another currency. In fact the coin in bitcoin is really a helpful metaphor in getting your head around some of the things it can do but it really is quite an inaccurate description of what it is. Although it can be used as a currency, it is not a currency first and foremost. The trick I believe to understanding bitcoin is to cover every topic in one sitting. Subsequent lessons should try as best as possible not to introduce new topics but rather to explain the existing topics in greater detail, stripping away layers of abstraction and discarding analogies and metaphors as they go. By the end of primary school, students are aware of almost all the organs in the body and what their basic functions are. High school is about exploring in greater detail what they do. A medical degree is to go all the way to the root of the biochemistry involved. This scaffolding approach to building understanding is so frequently repeated in how we teach because it conforms to how humans assimilate new knowledge. Building a vague mental model that can gradually be refined and broadened is far more comfortable for most people than constantly introducing brand new topics. We have an urge to make what we learn fit in with the rest of our knowledge. Most of us feel a sense of discomfort, and sometimes fear, when something utterly new is introduced to us, unless it is introduced in a non-intimidating way.

Let’s Build a Pyramid

My hope is that this series of posts will contain in it everything you need to get going and get comfortable with bitcoin. I want to cover the entire set of topics necessary to have a basic understanding in one set of posts. This is where the scaffolding approach mentioned above will be applied because the very next set of posts will cover the exact same topics but in greater complexity. To help you organize and navigate all the content, I’m naming each complete set of posts seasons, much like your favourite shows. Each season will consist of a number of posts, and every topic will be covered by an entire season. Each subsequent season will just entail an increase in complexity (but cover the exact same topics). I’ll include a table of contents page and links in every post so you know exactly where you are and each post will have the season number in the title. Absolute beginners will probably want to start with the very first season whereas those more comfortable may want to jump further ahead. I don’t want the reader to feel that they have to jump all over the internet trying to decipher technical terms I throw in. Each new term introduced will be explained to the extent that they are necessary to understand the current post. Please feel free to leave questions and comments on the paragraphs that confuse or interest you in case I have failed to explain something in adequate detail. I want this to be an empowering and enjoyable journey for everyone of every age and technical ability. Once this series of explanatory posts concludes, I may delve into what’s happening in the world of bitcoin and how bitcoin can change the world. I’m open to ideas and would love to hear your suggestions as we go. I hope you enjoy the journey.

Disclaimer: I come from a background of having a masters in economics and a degree in computer science and I’m currently employed as a software developer. I have a good understanding of bitcoin but by no means a perfect understanding. I’m still learning and I’m sure I’ll continue to learn for many years. But I know what it’s like to feel lost in a forest of what sounds like world war 2 code-breaking lingo and I want to make the process as painless and enjoyable as possible.

If you find anything you read helpful please feel free to copy and paste to your hearts content or share on social media. Information wants to be free after all. If you want to show your appreciation in other ways, bitcoin donations are most welcome and appreciated.

Wallet Address: 1HRKWurLfmSLpVpXusteTw3XBvj1T7xBHa