WEBVTT 00:00:00.040 --> 00:00:05.200 Humans don't really need anything except 00:00:03.280 --> 00:00:08.960 for food, shelter, clothing, and clean water. Theoretically, if everyone had 00:00:07.440 --> 00:00:12.080 the perfect amount of each of those things, we would have no need for money 00:00:10.559 --> 00:00:16.480 and everyone would live happily ever after. In the real world, some people 00:00:14.559 --> 00:00:20.640 have more water than others, but perhaps less access to food or clothing. And 00:00:18.640 --> 00:00:25.680 trading or bartering for a better balance has always been necessary. But 00:00:23.359 --> 00:00:30.160 picture this, the local mall with every shopper carrying around like bolts of 00:00:28.000 --> 00:00:34.559 cloth or construction grade lumber to each shopkeeper one by one trying to 00:00:32.320 --> 00:00:39.680 find the one who both has what they need and needs the thing that they happen to 00:00:36.640 --> 00:00:42.239 be carrying. Kind of ridiculous. That is 00:00:39.680 --> 00:00:47.039 why we need currency. Compared to cattle, for instance, it's easier to 00:00:44.160 --> 00:00:51.280 use, more durable, and more compact. Not to mention, it smells better. Metals, 00:00:49.200 --> 00:00:55.360 notably gold and silver, were used as currency for thousands of years. Then 00:00:53.840 --> 00:00:59.520 widespread adoption of government regulated centralized banking in the 00:00:57.199 --> 00:01:04.799 19th and 20th centuries brought about money. This currency exists in the form 00:01:01.920 --> 00:01:10.240 of promises stored electronically and printed on paper. Handy, sure, but 00:01:07.600 --> 00:01:15.439 unlike metals whose value we all agree on, with money we rely on someone else 00:01:13.040 --> 00:01:20.720 to tell us what it's worth. Which leads us to why there are people who want a 00:01:18.159 --> 00:01:25.040 new alternative to centralized banks. Regulated currencies are ultimately 00:01:22.640 --> 00:01:29.280 controlled by people and are therefore more easily manipulated for gain by 00:01:26.960 --> 00:01:34.159 those in a position of power with a deep understanding of the system. With 00:01:31.200 --> 00:01:38.159 Bitcoin and other cryptocurrencies, like anything, it's possible to gain the 00:01:36.400 --> 00:01:42.640 system for personal gain, but they are not centrally controlled. Supply and 00:01:40.640 --> 00:01:47.600 demand are the main drivers of their worth and the built-in limit to how much 00:01:44.880 --> 00:01:52.880 can exist. Just like precious metals should in the long term prevent mass 00:01:50.520 --> 00:01:58.159 devaluation and the inflation that's caused by central banks printing money 00:01:55.360 --> 00:02:01.360 that they don't have. Okay, so if we want to be more like metals, why not 00:01:59.600 --> 00:02:05.520 just go back to gold? Well, there are other advantages, too. Unlike gold, 00:02:03.439 --> 00:02:09.440 which is inconvenient to move around, Bitcoin is stored and transferred 00:02:07.360 --> 00:02:14.080 digitally in a virtual wallet. And unlike cash, each Bitcoin has a public 00:02:12.160 --> 00:02:18.319 transaction history that makes it theoretically impossible to counterfeit. 00:02:16.640 --> 00:02:23.040 All right, so how do I get them? Well, method number one is to use a computer 00:02:20.480 --> 00:02:27.599 to solve cryptographic problems. You can get more details on this in the Bitcoin 00:02:25.120 --> 00:02:31.599 sub forum online is techtips.com. Method number two, like any other type of 00:02:29.520 --> 00:02:36.400 money, is to exchange goods or services for it or even other currency using an 00:02:34.080 --> 00:02:40.800 exchange. So, sounds great, right? I sure think so. The obvious question 00:02:38.480 --> 00:02:45.280 though at this point is what can go wrong? And the answer is lots. At the 00:02:43.440 --> 00:02:49.200 moment, not too many merchants accept Bitcoin, so it's kind of hard to spend. 00:02:47.519 --> 00:02:54.080 Without regulation or predictable demand, valuation can swing up and down 00:02:51.400 --> 00:02:57.680 wildly. Some governments, notably Russia and China at the time of filming, are 00:02:56.000 --> 00:03:02.239 resistant to cryptocurrency and have gone as far as to ban the use of 00:02:59.519 --> 00:03:06.120 Bitcoin. And like anything new, the security of the system is still largely 00:03:03.920 --> 00:03:10.800 unproven. Can I truly buy something anonymously? Can it be easily stolen 00:03:08.480 --> 00:03:16.480 from me digitally? Can anyone promise me that this will still exist in one, 10, 00:03:13.519 --> 00:03:22.159 or a hundred years? Currency relies on trust. And only time will tell which 00:03:19.400 --> 00:03:28.879 cryptocurrency, if any, we can trust for our retirement funds. What can we count 00:03:24.319 --> 00:03:31.200 on? Bitcoin, do Deutscoin, Dogecoin, 00:03:28.879 --> 00:03:34.480 whatever you want to call it. Well, I don't know. But I'll tell you what we 00:03:32.560 --> 00:03:37.599 can count on. Lion is telling us what a great idea it is to head over to 00:03:36.200 --> 00:03:41.280 audible.com/techwicki to learn about their monthly audiobook subscription. 00:03:39.519 --> 00:03:44.720 Audible.com is the number one spot on the internet for audio books. You know, 00:03:43.040 --> 00:03:49.599 books that read themselves to you with your smartphone or other device. They 00:03:46.799 --> 00:03:53.599 have over 150,000 choices, including a personal favorite of mine, The Secret 00:03:51.280 --> 00:03:56.959 Diary of Adrien Mole by Sue Townsend. I read this as a kid and the only 00:03:55.200 --> 00:04:00.560 complaint I had about it was that a lot of the diary entries hit shockingly 00:03:58.799 --> 00:04:04.080 close to home, making it the kind of thing that would be awkward to read 00:04:02.000 --> 00:04:08.159 alongside my parents. Maybe that's an idea. Give audible.com a try. The first 00:04:06.159 --> 00:04:11.760 one is free and listen to it together with your pre-adolescent or adolescent 00:04:09.840 --> 00:04:14.640 son just for a lark. Anyway, guys, thanks for watching. Like this video if 00:04:13.040 --> 00:04:18.320 you liked it, dislike it if you disliked it. Leave a comment and let me know your 00:04:16.720 --> 00:04:22.320 thoughts on Bitcoin or other cryptocurrencies. And of course, you can 00:04:20.639 --> 00:04:24.800 exchange comments with each other because the new YouTube comment system 00:04:23.759 --> 00:04:29.280 is so much better than the old one, etc., etc., etc. Thank you, Google, for the large sums of cash that you gave me 00:04:28.080 --> 00:04:32.639 for saying that. Actually, they didn't, and I was being ironic. Anyway, and as 00:04:31.440 --> 00:04:37.600 always, guys, don't forget to subscribe to Techquie for more fastest possible videos just like this one.