An ELI5 on #Bitcoin.

Think of Bitcoin as a startup founded in 2008, created by a guy named Satoshi Nakamoto, initially bootstrapped with his personal capital. No VC funding; just electricity.

His product? An unobtainium.

1/7 🧵

Bitcoin, an unobtainium, is an intangible, rare material, that allows you to store value across decades and generations. It's resistant to confiscation; censorship; theft by inflation; and attacks by corporations, governments, or even aliens - as in Avatar (2009 film).

2/7
In order to possess this rather unobtainable material, you must have a 78-digit random number, also commonly represented as a set of 24 words. Never reveal this to anyone. Ever. Write it down on a piece of paper or etch it on steel; then take it to the grave.

3/7
Bitcoin can be teleported across space (with on-chain transfers) and time (using timelocks); without the possibility of intercepting it in transit. It's either with you or with the counterparty — there's no intermediate state.

It's not magic; simply laws of thermodynamics.

4/7
Satoshi stepped down as the CEO of Bitcoin in 2011. Who runs it today? No one, and everyone, at the same time. It has no board of directors. It's just a set of mathematical equations, unfailingly enforced by very strong network effects. There's no known way of stopping math.

5/7
Today, it's a melting pot of bleeding-edge engineering and research, with hundreds of developers working on it for free. Each day, Bitcoin gets harder, smarter, and more secure; constantly evolving, and self-healing. True anti-fragility at work.

https://t.co/cI6MkklbZS

6/7
When you buy Bitcoin, you're using a product, but also buying equity in its success/failure. The price depends on how the market values its properties, and how difficult it is to produce more of it. It may be a passing fad or a very important feat of the human civilisation.

7/7
This is years of learnings marshalled in a few tweets. I learnt everything from:

@PrestonPysh @real_vijay @Breedlove22 @jimmysong @saifedean @michael_saylor @stephanlivera @100trillionUSD @pierre_rochard @RaoulGM @matt_odell

Go follow them!

For memes, follow @udiWertheimer.
Tagged the wrong Raoul. 🤦

The real one: @RaoulGMI

More from Crypto

You May Also Like