How Bitcoin Works Under the Hood

My Bitcoin address: 13v8NB9ScRa21JDi86GmnZ5d8Z4CjhZMEd A somewhat technical explanation of how Bitcoin works, written version: http://www.imponderablethings….
Video Rating: 4 / 5

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Stefan Molyneux looks at the rise of Bitcoin and discusses its history, mining, fees, altcoins, regulatory hypocrisy, worldwide awareness, comparisons to gol…

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48 comments

  1. hello “free” bitcoin spammers: I am moderating comments, so why don’t we
    save each other some time? You’ll notice there are ZERO comments with spam
    links that made it through.

  2. Thanks for the explanation. But still having a hard time understanding why
    Bitcoin exists.

  3. This is the first step towards a future with no money. 

  4. Wondering how Bitcoins work? Here is the best explanation I have seen so far

    #Bitcoin 

  5. How Bitcoin works under the Hood !!

    #Bitcoin 

  6. Bitcoin 101

  7. Very good video!

  8. To prove any transactions are mine you would need my private keys. And if
    you’re just looking at that you’re being silly. Just sell the funds and rob
    me.

    This video is stupid because it puts names on it’s portrayals of the
    ledger.

  9. Clear as mud

  10. One video. Instant subscribed.
    Awesome. I love the love for detail and the cool examples.

  11. The numbers of the possible key can be large. But the period does not only
    depend on the key length but on the process of creating the key.

    GUID are large but collisions do uccur.. 

  12. And then a cunt wart thief hacker finds out how to ruin this bitcoin
    monetary system free of taxes, being sued, garnished and otherwise stolen
    by those in authority who think they have the arbitrary right to take what
    is not theirs.

  13. finally a good explanation thank you now for a tutorial?

  14. So bitcoin mining is like winning a lottery. The odds are low because
    you’re in a race against the whole network. Makes sense.

  15. Thank you very much for taking the time to explain this. Plus, you did it
    in a very straightforward, yet understandable way. Back when I first
    considered getting into BTC, they were worth about $33. I had numerous
    reasons for “erring on the side of safety” and part of it was a simple lack
    of understanding of how it could be safe and anonymous.

  16. Out of curiosity, what is to keep someone like IBM from hooking Watson up
    to the network and solving all the Bitcoin hashes? I understand the formula
    somehow limits the solution so the entire network solves a Bitcoin only
    every 10 minutes. Even so, wouldn’t it be possible for someone with
    sufficient computing power to influence the network in various ways? 

  17. I have a Bitcoin, trying to buy a 2nd. I see Bitcoin as almost a language
    changer. Sorta the realization that programming is the new economics, all
    that human behavior stuff, not amounts. There is a type of trust, alien to
    our society, a real “new” experience, socially. Better? Irrelevant. But,
    what if every human had a name & a crypto currency, not just a Bitcoin?

  18. Very well done!

  19. How Bitcoin works under the hood! 

  20. Bitcoin is just like Obama-care its too complicated like Donald Trump says
    it will never work both of those fiasco’s will fail in the end, also you
    got financial terrorists in China and Russia and around the world that are
    working around the clock to crack Bitcoin to be able to pilfer the system
    until the whole thing finally collapses in the end just like any Ponzi
    Scheme and you will have a few millionaires and billionaires left over from
    the carnage just like John Felderhof benefited from the Bre-x fraud or Jon
    Corzin from MF Global fleecing.

  21. this guy lost me at 0.00000000^0000000000^00001 sec into the video…. 

  22. so you stop being an imbecile and at least understand what could
    potentially get us from the nonsense that are Banks.

  23. I feel stupid. I watched the video twice and my head is still spinning 

  24. This is a superb video man! I couldn’t have done this half as good! Big
    cheers

  25. The US Government has just declared that Bitcoin is a legitimate currency,
    and Bernanke says he has no plans to regulate it – the price now floats
    between $700-800 dollars per Bitcoin, I hope you bought into it when I
    published this presentation, when it was $137. 500% ROI – not a bad return
    for 7 weeks.

    PS if you did make some money after listening to this show, please feel
    free to throw back some love – http://www.fdrurl.com/donate

  26. Mentalidade Logica

    A Bitcoin is a lot like a US$ – they are both backed up by an imagery gold
    reserve

    No central-bank, that it’s nice but nasty if there’s a “Bitcrash” (not
    insurable). No one to point a finger too then no worldwide trust

    No banks therefore no fees, etc. – you mean *not yet*.
    Banks did not nickel and dime neither just a couple decades ago. So, soon
    you will see BitBanks, Bit_nickel-and-dime charges, Bit ATM’s etc.

    Bitcoins have a High Demand and Low Supply, that in simple Economics =
    Inflation (very nice breeding ground for an OPEC like Cartel -the original
    Bitcoin holders)

    Than there is the security issues. Who is guarding the Bitcoin Mines
    against sophisticated hackers? What happens if your computer crashes, you
    get hacked or you accidentally delete your wallet?

    I must say thou – this has indeed great potential if tied to something
    tangible and out of the controlling hands of the few.

  27. Put your Bitcoin address out, receive 484 coins. Nice.

  28. When Bill Gates and Albert Arnold Gore, are a few of the people who are
    associated with Bitcoin. I prefer to stay well away from this product.

  29. Dream on, dream on… you false headed morons.

    Oh wait!

    Let`s see how your bit-coins are working here: http://www.usdebtclock.org/

    Your debt is getting bigger and bigger… huh?

    Every second… you morons!

  30. Everyone sell your bitcoins. Buy dogecoins! We’re headed to the moon!

  31. Tulip mania

  32. I really like the concept of BitCoin, but I’m certain it’s only a matter of
    time before it’s shut down for being evil and un-American, just like its
    predecessors.

  33. very informative thanks for this

  34. such smart.

  35. this isn’t the truth about bitcoin, it’s just an info’ vid. “the truth”
    about “x” is typically a debunking. This is just info, all of which is
    already out there

  36. You are a most handsome man… And smart… Priceless.

  37. Alessandra Martellacci

    I guess I’m not as bright as I thought I was. I still don’t understand
    bitcoin. It sounds a lot like a scheme no matter how many times it’s
    explained or who is doing the explaining. The “mining” really sounds like
    tech savvy people printing their own money. It has NO intrinsic value. If
    this is the future, I’m out. I’m going to move off the grid and become a
    wild woman. Silly me, I’ve been hoping for a money-less, Star Trekkian
    society… 

  38. This is what I’ve been concerned about with any finite standard, gold,
    Bitcoin or otherwise. At the 33:00 area, you talk about deflation. Why
    would deflation be a good thing? And why would the change in our spending
    habits be a good thing? Am I wrong to think this would lead to a
    deflationary spiral, or is there some information I’m missing out on?

  39. bitcoin is pyramid scheme, all pyramids are harmfull. bitcoin must be
    destroyed,

  40. I guess bitcoin didn’t read today’s news about The NSA’s plans to use
    quantum computers that can crack any encryption in a nanosecond. They will
    have the power to steal every bitcoin code ever generated. In fact any
    entity that utilizes quantum computing can crack bitcoin wide open. The
    biggest question for me is who started this scam and what are they getting
    out of it? If they’re getting nothing then why are they doing it?

  41. Bitcoin is a ponzi scheme where you try to sell your Bitcoin at a higher
    price to the next guy in order to make money on it. It’s too volatile.
    Didn’t Bernard Madoff go to jail over this stuff???

  42. Bitcoin mining seems like a waste. Why not just release them randomly over
    time?

  43. The heat generated by my bitcoin mining rig goes into my house, so you
    could say that I heat my house using electricity and as a byproduct
    bitcoins are produced. Bi-winning!

  44. Bitcoin is backed by a decentralized functional network which has some
    specific mathematic properties.

  45. It is only the possibility of the reintroduction of a gold standard that
    would have kept its current status since ’71, and Im sure nobody of any
    insight could see that possibility coming about….Very intriguing..

  46. So, we are going to put our faith in a digital currency, backed by nothing?
    I guess it is better than green pieces of paper, also back by nothing.

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