What is Bitcoin? Explained For Beginners 2022



We talk about What Bitcoin is, if you should invest in it after the recent surge in its price, how it fundamentals work and how much of your portfolio you should invest in it.

I do want to give credit to the channel 99bitcoins for helping me understand what is bitcoin in a simple manner that I used for this video as well.

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So What is Bitcoin in Plain English?

Simply put, it’s a decentralized digital currency that runs on a network. But what does that mean?

Before Bitcoin, the only way to actually transfer money digitally was through a bank. Think of a transfer method like PayPal or Venmo, or Zelle – which is an online banking service that lets you transfer money from one person to another.

Well in all of those transactions, you need some sort of financial institution that acts a middleman to validate the transaction.

Right? You pay Jeff $100 on Zelle, well Jeff’s bank is gonna give him $100, and then take the $100 from your bank account, and the banks talk on the backend.

You need an intermediary. In the past – it was the banks.

With Bitcoin, there is no intermediary. Every Bitcoin transaction is checked and validated by the entire bitcoin network. So when you send $100 to Jeff, that’s going to be of public record and validated by everyone else on the network.

Since theres no single point of failure, the system is impossible to shut down, manipulate, or control – which is the benefit of Bitcoin.

The reason for BTC surging in the past few months, from 10k a Bitcoin to over 18k a Bitcoin at the time of this recording is in my opinion due to a few factors:

1. Institutions are buying in – Paypal, Square, JPM.
2. Bitcoin Halving.
3. Press.

To understand how Bitcoin is produced, we need to know the fundamentals of it:
– First of all, there will only be 21 Million Bitcoins ever produced. Currently, about 18.5 million bitcoin are in circulation.
– Now that seems like we aren’t too far from mining them all, but the truth is that since the Bitcoin rewards halve on average every 4 years – it means that the final bitcoin will probably not be fully mined until 2140.
– So, Bitcoin has a finite supply. In a way, it’s different than traditional currency, and acts more like real estate land. There’s a finite amount of land available on the earth, so since more can’t be produced – the value of it will go up over time, as long as there’s still an equal or growing demand for it.
– The reason Bitcoin has value partly is that its transaction costs are much lower than credit cards, its also hard to obtain, and if the demand of Bitcoin exceeds the rate at which it can be produced – well then you have a rise in price.
– Another reason is that, if you believe that in the future currency will have to change in some sort of fundamental way – Bitcoin is a hedge for that outcome.
– Think about how currency has evolved over the past few hundred years, it used to be that we goods like wheat, shells, copper, and gold – they all represent money and represented value.
– And as long as those items had value and we trusted it had value, they were considered currency.
– At some point, instead of using GOLD, we transitioned to paper money. And the only reason we can still trust paper money right now is that everyone has a shared belief that it is worth something – or else money, is just well, a piece of paper – right?
– Well the paper money is tied to the government which backs the currency, and there’s a centralized money supply and control.
– So that’s a funny way to think about it, but essentially all money is, is a shared belief that it will be worth something.
– So if you do think Bitcoin is here to stay, it’s basically an alternative to paper currency – and it will hold value as long as everyone believes it will hold value and be of value.

▶️ My name is Humphrey Yang, I am an entrepreneur who has built businesses and am passionate about Personal Finance. This channel is dedicated to helping people (whether you’re 21 or 81) become better with Personal Finance, Investing, and Entrepreneurship. I hope these videos help!

📧 Contact: If you have a question feel free to leave me a comment on my videos or follow me on IG and send me a DM! If you have a business related inquiry, please then send me an email at humphreytalks@gmail.com



We talk about What Bitcoin is, if you should invest in it after the recent surge in its price, how it fundamentals work and how much of your portfolio you should invest in it.

I do want to give credit to the channel 99bitcoins for helping me understand what is bitcoin in a simple manner that I used for this video as well.

► Coinbase ($10 Free BTC, Code: YANG10) ➭

📌 Subscribe for Weekly Videos:
► My Stock Portfolio + Tracker ➭
► Get 2 Free Stocks on WeBull (valued up to $1600 when you deposit $100) ➭
► Robinhood (get another free stock!) ➭
► FREE Discord ➭
🐪 My FREE Newsletter ➭
📷 Instagram:
📲 Tik Tok:

So What is Bitcoin in Plain English?

Simply put, it’s a decentralized digital currency that runs on a network. But what does that mean?

Before Bitcoin, the only way to actually transfer money digitally was through a bank. Think of a transfer method like PayPal or Venmo, or Zelle – which is an online banking service that lets you transfer money from one person to another.

Well in all of those transactions, you need some sort of financial institution that acts a middleman to validate the transaction.

Right? You pay Jeff $100 on Zelle, well Jeff’s bank is gonna give him $100, and then take the $100 from your bank account, and the banks talk on the backend.

You need an intermediary. In the past – it was the banks.

With Bitcoin, there is no intermediary. Every Bitcoin transaction is checked and validated by the entire bitcoin network. So when you send $100 to Jeff, that’s going to be of public record and validated by everyone else on the network.

Since theres no single point of failure, the system is impossible to shut down, manipulate, or control – which is the benefit of Bitcoin.

The reason for BTC surging in the past few months, from 10k a Bitcoin to over 18k a Bitcoin at the time of this recording is in my opinion due to a few factors:

1. Institutions are buying in – Paypal, Square, JPM.
2. Bitcoin Halving.
3. Press.

To understand how Bitcoin is produced, we need to know the fundamentals of it:
– First of all, there will only be 21 Million Bitcoins ever produced. Currently, about 18.5 million bitcoin are in circulation.
– Now that seems like we aren’t too far from mining them all, but the truth is that since the Bitcoin rewards halve on average every 4 years – it means that the final bitcoin will probably not be fully mined until 2140.
– So, Bitcoin has a finite supply. In a way, it’s different than traditional currency, and acts more like real estate land. There’s a finite amount of land available on the earth, so since more can’t be produced – the value of it will go up over time, as long as there’s still an equal or growing demand for it.
– The reason Bitcoin has value partly is that its transaction costs are much lower than credit cards, its also hard to obtain, and if the demand of Bitcoin exceeds the rate at which it can be produced – well then you have a rise in price.
– Another reason is that, if you believe that in the future currency will have to change in some sort of fundamental way – Bitcoin is a hedge for that outcome.
– Think about how currency has evolved over the past few hundred years, it used to be that we goods like wheat, shells, copper, and gold – they all represent money and represented value.
– And as long as those items had value and we trusted it had value, they were considered currency.
– At some point, instead of using GOLD, we transitioned to paper money. And the only reason we can still trust paper money right now is that everyone has a shared belief that it is worth something – or else money, is just well, a piece of paper – right?
– Well the paper money is tied to the government which backs the currency, and there’s a centralized money supply and control.
– So that’s a funny way to think about it, but essentially all money is, is a shared belief that it will be worth something.
– So if you do think Bitcoin is here to stay, it’s basically an alternative to paper currency – and it will hold value as long as everyone believes it will hold value and be of value.

▶️ My name is Humphrey Yang, I am an entrepreneur who has built businesses and am passionate about Personal Finance. This channel is dedicated to helping people (whether you’re 21 or 81) become better with Personal Finance, Investing, and Entrepreneurship. I hope these videos help!

📧 Contact: If you have a question feel free to leave me a comment on my videos or follow me on IG and send me a DM! If you have a business related inquiry, please then send me an email at humphreytalks@gmail.com

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