A Beginner’s Guide to Bitcoin

Total beginner to Bitcoin? Good This video is exactly for you

Right off the get go, beginner's guide This assumes that you're just, yeah, I've heard of cryptocurrencies I've heard of Bitcoin, but I, that's pretty much it I've heard of it I don't know much else about it

This is the video for you If you're sitting there saying, hey, look, is this video gonna, when I'm done with it, I'm gonna be making millions of dollars per week trading? No, no, that's not what this is about I don't need any people showing up in the comments section, oh, click bait No, no, no, this is just, fair warning You can turn it off right now

I'm not offended But if you just have no idea what any of this really is, perfect, this is the video for you Let's break it down from just the very kind of root word of things and we'll go from there So first part, currency Currency is just a form of money

All different countries have their own form of currency The United States has the dollar Japan has the yen The European Union has the euro You know, the United Kingdom, England, has the pound

Those are just all different currencies, or in other words, types of money So currency is just a type of money But what I wanna focus on here is the word crypto So what exactly does crypto mean? Let me get the definition up there, then we'll talk about it Now that we have crypto up here, what does that mean? A combining form meaning hidden or secret

That probably is like, okay, that helps me zero All right, so, let's break it down Let's look at combining form, and this will mean a little bit more sense when we get to the whole mining part of things But just keep in mind mining form, and secret Yeah, that's okay, it'll work

But I'm just gonna eliminate that The main thing that I wanna focus on here, though, is once again hidden Combining form and hidden, and that's where the whole currency is coming from, which leads into, okay, well, yeah, okay Clay, that's, I get it It's a currency It's a form of money, but still, where is cryptocurrency coming from? Why does it have value? Well, let's address that real quick

Why does it have value? Simply put, what does value come from? Right here Value equals belief Guess I'm kind of broke I have a dollar though Is this worth anything? No, it's not

Well, I don't know If I took this to the recycle company maybe I could get a half a penny because it's paper It's got some ink on it So no, this is not worth anything But you're saying, what are you talking about Clay? That's a dollar bill, that's worth a dollar

Why is that worth a dollar? Because you believe it is Why do you believe it is? Well, because it's backed by the United States of America, and that's what's giving this actually value So that is where value comes from What is value actually defined as other than belief? What can value get you? Let's see I remember the days when this, dollar matinees

I could go to the movie theater Here, take a dollar, and that would get me some sort of service, right? I would be able to see a movie So that's what value does It gets you some sort of product or service So you're saying, well, okay, I get it

But how does Bitcoin have any sort of value? Where is all this belief coming from? You know, that's kind of a good question, but there's enough belief out there now where Bitcoin, as a currency, as a form of value in terms of getting a product or a service, is out there Now, not everybody takes Bitcoin, but there's more and more merchants and such that are starting to take it Why? It's just why, it's pretty much why it's kind of an amazing story, why it's such a phenomenon Because people are believing it And more and more people are believing in it, and that's why prices, at least at the time of the recording of this video, have gone up and up and up because the more people that believe in something, the more value that it has

And of course, the less people that believe, well, then that's how prices are fluctuated in the market So how, why are people believing? Why, hey, that's the million-dollar question That's what makes it such a phenomenon in itself But the point being, is enough people do believe in cryptocurrency, particularly Bitcoin, where it does now have value So that is where the value is coming from, it's just strictly enough people are believing in it, are supporting it as some sort of means to purchase products and services

But where exactly is it coming from? How is it being created? The good old US of A, we have probably a printing press down in the basement of the White House and we just spit out money left and right Not really, it's all, like, which is kinda scary, you just press a button, hey, there we go, I just created a million dollars But how is Bitcoin actually created? Well, created isn't necessarily the word to use What needs to be used is mining So instead of mining for gold, silver, diamonds

You are mining for Bitcoin So how exactly is this mining working? Well, let's come back here with combining forms And the combining form here is you just have, and this is gonna be a good time, let's see, I'm gonna go back to school here So we have for you Calculus fans out there, and I'm just totally making this up, I'm not even sure if this even makes any sense anymore, but the summation and then, yeah, we have, I forget what these are called but I think that makes it positive, then we have the square root, then you can throw numbers over here And then, I don't know, let's just divide this by x times y, and then you gotta divide that by the square root of five squared, and then you have to divide all this by pi times two, divided by four

'kay, there we go So this is a combining of a whole bunch of just stuff, but what this is really getting at is there is some sort of complex math problem Complex number problem AKA, you don't know the answer to it You have to figure it out

So it's hidden, right? It is hidden, and you need to try to figure out a solution Well, I should say, if you want a Bitcoin If you want to create a Bitcoin, you need to be able to figure that out Now you may be thinking, well, Clay, I do not have a degree in mathematics I don't have anything of that sort

Well, the people that are working on this complex problems are gonna be just computers You could probably call 'em supercomputers, but some people, I mean, you can see, and they just have hallways and hallways full of computers that are trying to crack these complex math problems Again, don't leave in the comments section, Clay, that's mathematically impossible I don't even know what that means, okay, I just made it up and I was having fun But it's supposed to represent a complex issue that's hidden and it's combining a bunch of things, and when you combine this stuff, it's just, you know think about cryptotography, and other words where crypto is within the root word

But that's what's going on, and computers are trying to solve these If they do solve them, then a Bitcoin is created And these are not, like, you know, I don't know, the quadratic formula where even I could probably still figure that one out No, these are very, very, did I say very, complex problems So it's not like Bitcoins are coming into creation all over the place over and over again

There's a very structured manner behind it, but that is how they are figured out And I'm not going to go into the history of how this was all created, but somebody very smart created it, blockchain technology is the term of it And, again, why do people believe in this stuff? Hey, that's what makes it a phenomenon It's crazy, but it's working, and I'm sure people could tell you why it's believing, 'cause the technology is there and more and more people are believing the technology And that is why, but as far as why has it caught on as much as it has? Well, that's just what makes some people say it's a bubble, other people say it's here to stay

So I don't know, your opinion, that's up to you But as far as what a cryptocurrency is, and in this case Bitcoin, there are lots of other Bitcoins, or other cryptocurrencies out there So whether you replace Bitcoin with one of the other currencies, there seems to be a new one every week That is what's going on here It is just a digital currency that has been formed by computers, algorithms, big complex problems that when they're solved, it creates a form of that currency

And why is the belief there? Where is all the value coming from? Well, valuing comes from enough people have faith in it, and when people have faith in something, they are willing to believe in it and offer products and services for it I guess for me personally, as of a few weeks ago, we started to accept Bitcoin on claytradercom So chalk me up in the believer Because I'm a believer, I take value in it, and I accept it as a form of payment

So that's a real-world example Why do I personally believe in it? I don't know, I guess because enough other people do now so I'm just jumping on the bandwagon, and sure, that doesn't make me a pioneer, but, hey, it is what it is But there's a little real world example of how Bitcoin has expanded out a little bit more I now accept it, like I said, as payment for courses and the chatroom and all that So that is what Bitcoin is

I realize this was not how to trade it or anything like that but this is how it all breaks down So don't be intimidated by this It's just a form of money that's been formed through all these processes and now that enough people believe in it, it does have value associated with it But again, value is gonna shift with belief The more belief, the higher the value

If all of a sudden less people and more and more people, let's say, start to not believe in it, well then values are gonna go down, and that's just basic supply and demand But hopefully this helps, and if you enjoyed this, click that like button If you'd like for me to do more Bitcoin videos, then definitely click the like button, leave comments down below, and throw out questions that you have that maybe I can help answer with some more future Bitcoin cryptocurrency-type videos But hopefully this helps you out, and now you have a good idea of what exactly is a cryptocurrency and where it all comes from If you are out there trading alone currently, and maybe are in the market looking for a community to join to assist you in your trading or to just help you, give you another set of eyeballs, then I do have a private trading community where you can trade alongside me and other experienced traders so what you see popping up on the screen right now is both an information link, so if you click on the inner circle one, that is going to take you to the page where I explain all the details of what exactly come with the community, both the chatroom and the newsletter, and then the other image that has popped up is a behind the scenes tour where you can see exactly what is going to be contained within the community

I take you through, like I said, a behind the scenes tour of everything and that way you'll know precisely what you are getting when you join So definitely check that stuff out if you are interested and thinking about wanting to join a community and let me know if you have any questions