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Bitcoin: How Cryptocurrencies Work

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Whether or not it's worth investing in, the math behind Bitcoin is an elegant solution to some complex problems. Hosted by: Michael Aranda Special Thanks: Dalton Hubble Learn more about Cryptography: https://www.youtube.com/watch?v=-yFZGF8FHSg ---------- Support SciShow by becoming a patron on Patreon: https://www.patreon.com/scishow ---------- Dooblydoo thanks go to the following Patreon supporters—we couldn't make SciShow without them! Shout out to Bella Nash, Kevin Bealer, Mark Terrio-Cameron, Patrick Merrithew, Charles Southerland, Fatima Iqbal, Benny, Kyle Anderson, Tim Curwick, Will and Sonja Marple, Philippe von Bergen, Bryce Daifuku, Chris Peters, Patrick D. Ashmore, Charles George, Bader AlGhamdi ---------- Like SciShow? Want to help support us, and also get things to put on your walls, cover your torso and hold your liquids? Check out our awesome products over at DFTBA Records: http://dftba.com/scishow ---------- Looking for SciShow elsewhere on the internet? Facebook: http://www.facebook.com/scishow Twitter: http://www.twitter.com/scishow Tumblr: http://scishow.tumblr.com Instagram: http://instagram.com/thescishow ---------- Sources: https://bitinfocharts.com/ https://chrispacia.wordpress.com/2013/09/02/bitcoin-mining-explained-like-youre-five-part-2-mechanics/ https://www.youtube.com/watch?v=Lx9zgZCMqXE https://www.youtube.com/watch?v=nQZUi24TrdI https://bitcoin.org/en/how-it-works http://www.forbes.com/sites/investopedia/2013/08/01/how-bitcoin-works/#36bd8b2d25ee http://www.makeuseof.com/tag/how-does-bitcoin-work/ https://blockchain.info/charts/total-bitcoins https://en.bitcoin.it/wiki/Controlled_supply https://www.bitcoinmining.com/ http://bitamplify.com/mobile/?a=news Image Sources: https://commons.wikimedia.org/wiki/File:Cryptocurrency_Mining_Farm.jpg
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Text Comments (5330)
Ramya Krishna M (2 hours ago)
Crypto Currency works really well..it's been extending to all the sectors..
Steve Christian (3 hours ago)
My Success in Cryptocurrency is rewarding.learning new method and trying them out on a live account is so challenging. Have been able to make 70% profit on my own using Frankpeterhills@gmail com technique. I know is difficult to find a good advisor, I never thought would ever find one. So, I make withdrawal once in 3 months. Anyways if you are patient enough to invest,you can go ahead..
Bryan Peterson (9 hours ago)
Bitcoin only truly exists to try and oust currency in the world. It won't happen.
Bryan Peterson (9 hours ago)
John Smiths (1 day ago)
The explanation he gave might not be so clear to so many people that are new to crypto, crypto currencies for example Bitcoin is simple, buy at a certain price and sell in few days or weeks..now you will be more confused and what will probably be going through your mind now is 1)how do I sell? 2) how do I know when to sell? 3) how do I buy if am interested? 4) how do I create my bitcoin wallet to get started? Answer to how do I buy if am interested. >> Its simple create a Bitcoin coin wallet free, buy by following simple steps to fund your Bitcoin wallet and its not a must you buy a whole Bitcoin you can buy in fractions for people with very weak finances as I am posting the comment 1Bitcoin is $8100 you can buy 0.5 Bitcoin at $4050 or even 0.1Bitcoin at $810. You can check Bitcoin prices on google and on your Bitcoin wallet too to guide you on the amount to buy and the price. Answer to how do I sell >> Some new Bitcoin wallets have provisions to input your bank account number and name where you can sell your Bitcoin immediately and its equivalent in your local currency paid in directly into your bank account or you can find a buyer and transfer your Bitcoin to the willing buyer and the buyer pays you in cash or by transfer. Answer to how do I know when to sell >> Bitcoin price increases exponentially by the day this means that the price of Bitcoin is constantly increasing. Imagine buying 1Bitcoin at $8100 today which is the current market price and selling and you wake up tomorrow checked Bitcoin price on your wallet or on google to find out its risen to $9000+ and if you request for a sell (cash out) you make over 1000$ in hours..that's so simple what if you buy now at $8100 and sell in week when its will probably over $10,000 you make more money that's exactly how profits are made on Bitcoin. World richest men are speculating that Bitcoin price will hit over $45,000 before the end of 2018 the video proof is here on YouTube. This is a golden opportunity to make extra bucks without working. Bitcoin is growing like wildfire, gaining popularity and being heard about even in the remotest part of the world. Answer to how do I create my Bitcoin wallet to get started >> its simple visit www.bitgoldinternational.com Signup to create your Bitcoin wallet, login into your wallet, make a request and fund your wallet. There are some people in the category of "I do not want to bother my self with buying checking prices and selling or its a complex thing to do but I still want to make money from Bitcoin" you are still covered with bitgoldinternational.com Send an email to support@bitgoldinternational.com for an investment plan if you don't want to trade Bitcoin for your self and needs to be traded for. You will be issued with investment plan to make your choice on how you want them to trade for you, how much money you want to trade with and how you want your returns on investment sent to you. And you can still monitor your investment if you are being traded for and can still make an input on how you want your investment to go and you can still request for a cash out at anytime you want. Its very easy to make money from Bitcoin and its not a complex process. Thanks for reading.
TOM BRAD (1 day ago)
Received $60,000 hack transfer from kryptohacker.wordpress. com they are so real
George Washington (1 day ago)
"Worth hundreds" vat da fug? Dayum
mohammad gh (1 day ago)
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elchaconaso (2 days ago)
when you go to a site and see the circle that indicates that site is loading for a long time it means that they are using your machine for mining same goes in aps for phones.
Lisa Fernandez (2 days ago)
Leida Uusbek (2 days ago)
Good video :) I found a good Podcast episode about HOW TO USE Crypto in your everyday life. I´ll add the link below if you're interested. http://cryptoandblockchaintalk.com/episode-15-using-crypto-in-your-everyday-life
Michael Dale (3 days ago)
There's a bomb crypto dropped in this video https://www.youtube.com/watch?v=c6rAYFrTjCc&t=1s
sali Moh (3 days ago)
awesome wealth is key
John Reyes (3 days ago)
Nicee what you did there... if you want to start in crypto industry this would help https://bit.ly/2uAuRJA
jerry smith (3 days ago)
wow just received a hack transfer of $50,000 from kryptohacker.wordpress,com
Arab Trooper (3 days ago)
I never understood any of this before watching this video, and now I still don’t have a clue what’s going on.
TARA MADAM (4 days ago)
Avi Listing (4 days ago)
Good news for everyone. Post ads and deal locally with any one in crypto currency http://www.cryptoclassified.net/
mr. g bato (4 days ago)
if you are interested in bitcoin check this out. https://bit.ly/2No6xBG
Venice Art (4 days ago)
i have trade on multiple trading sites but i would recomend binance the most in my opinion.... https://www.binance.com/?ref=21299693
Ricardo Almeida (4 days ago)
One of the best videos explaining something that I've ever seen. Bell icon pressed!
Reflected Miles (5 days ago)
I kept waiting for an explanation of how, if the system is so rigorously watched over by multiple records, bitcoins have been able to be lost and disappeared into thin air, sometimes in significant quantities following the failure of major players in this market.
İsmat Agamirzayev (5 days ago)
With companies like Lamborghini, Expedia, Subway, Virgin & many other Inc. 500 companies now accepting bitcoin/Crypto currency – It’s clear it’s here to stay & is taking over fast ..So we have all heard of Bitcoin & CryptoCurrency, so why isn’t everyone succeeding or starting with it? https://jvz6.com/c/1069113/294890
Cryptassist India (6 days ago)
Good Explanation!!
Sonny Azcuna (7 days ago)
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Dr Bob Gregson (9 days ago)
I hodl bitcoins in my wallet and indicated my investment at (bitcoinsinvest904@gmail.com) and in less than 5 days, I got 65% bitcoins dividends. I am so excited.
PodiumBeauty (9 days ago)
Slow down you are talking way too fast with so much detailed information. I hate people trying to teach something while speed talking. Im hearing every other word because I’m marinating on information as you speak. Slow down these videos man.
Orlando Gareth (10 days ago)
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How To Make Sushi (10 days ago)
This was a surprisingly informative video about how BTC works! as good as BTC is I think is way overvalued, better off getting in undervalued coins with great potential like ALQO.
Adam Tønsberg (11 days ago)
Very well explained!
Kshitij Saxena (12 days ago)
That's why I hate economics
corina rivera (12 days ago)
Ivan Gonzalez (12 days ago)
Tim Bradley (12 days ago)
News is circulating about a guy getting bitcoins for people. He’s called “Royalblade”
Smoke World (4 days ago)
Tim Bradley this dude has been the hottest hacker since my college days. He’s too good.
Malik Shaheedy (4 days ago)
Mike Fadenner smartest move considering the nature of bitcoins.
Martialart Gods (9 days ago)
EmilyEmily88 email him royalblade @ protonmail com to know more directly from him. Tell him Frank Dexter from Colombia who met him on twitter.
EmilyEmily88 (12 days ago)
I need more info on this guy. I’ve been hearing so much about him lately.
Maxwell Richard (13 days ago)
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Ez LeapnBuy (13 days ago)
Is Bitcoin a pump and dump thing? Still confused about it. I notice there are programs teaching this type of stuff. -> http://bit.ly/2tZ3lo1
Franco dun (13 days ago)
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Scott Brown (13 days ago)
A GREAT opportunity https://exitscam.me/crypto%20rewards
Rafael Cayenne (13 days ago)
A blockchain-based society would be an almost perfect utopia? (I mean, in politics, economics and overall aspects of humankind relationships)
Danny Landrum (15 days ago)
All this power-ravaging mining is the anti-thesis of "green" - for this and many other reasons, cryptos are going to fail in the long run.
Danny Landrum (15 days ago)
2:29 That shady sumbich.
glenn goodale (15 days ago)
what can I say, your videos are always so good .
Mandla Zide (15 days ago)
Visit our page and start earning in Cryptocurrency https://www.facebook.com/BitClubNetworkWinners
Aaron Garcia-Matusalem (16 days ago)
Youre so handsome. I love you
Nathan Nathan (17 days ago)
do you have bitcoin
R James (17 days ago)
Greek banking crisis 2015, Cyprus Government Bank Fiat confiscation 2013, USA/UK/EU banking crises 2008, USA Gold confiscation 1933 - These are events that 'traders' sometimes forget. Best to diversify away from government and fractional reserve banking system into decentralised crypto such as Litecoin or Bitcoin to spread risk as well as secure your assets! Litecoin mining reward halving 2019! Bitcoin 2020! Less Bitcoin/Litecoin means upward price pressure!
Google User (17 days ago)
Maria Garza (18 days ago)
Bitcoin is the original and most popular decentralized digital currency. It’s used by all types of people on every continent. Think of bitcoin as digital cash you can send or receive through the internet. Unlike traditional payments, Bitcoins are sent from one person to another without going through banks or other middlemen. Bitcoin can be bought and sold from online exchanges using dollars, euros, and other currencies and its the most popular of all the cryptocurrencies. Investing in bitcoin have made lots of people very wealthy. For those of us that bought and invested in bitcoin since 2011 we have made more gains selling bitcoins than when we bought it. Though it’s not too late for you to invest in bitcoin or any other cryptocurrencies. There are 2 ways in which you can invest in bitcoin to earn you profit. Some investors like myself who saw the potential then in bitcoin to rise in no time in the future quickly purchased lots of it when it was cheap to hold and store to sell when the price is now high and gained value. Also you can trade on bitcoin by depositing funds in your account and placing a bet that the price of bitcoin will either go high or fall down. Once you bet correctly you will earn a certain amount of percentage profit daily on your account. The price of bitcoin rose from $1,000/BTC last year January 2017 to $15,000/BTC but currently the price of 1 BTC $10, the price depreciated . Investors can purchase bitcoin at this time and store as experts has predicted the price of bitcoin will rise to $20,000 in no time. Imagine you purchase say 6 BTC for $12,200 for each BTC which is the current price at the moment as it depreciated drastically but still profiting from it, which gives a total of $73,200 and we assume that by February the price of one BTC has gone up to $17,000 which it will definitely rise and multiply that by 6btc which now gives you a total of $102,000 you have made an extra profit of $24,000. You can also invest in any other cryptocurrencies of your choice aside bitcoin, which is why most investors and traders are currently looking and searching for that one coin out of the several cryptocurrencies that will be the bitcoin killer to take over bitcoin in the future. Although I have my pick of coin which crypto experts have seen the potentials in that coin and the value it possesses. Myself and some other crypto experts are already investing on this coin like we did in bitcoin and cashing out. The power to be the next crypto millionaire is in your hands. Invest and trade with the right platform and purchase any coins of your choice you wish to invest in. For more guidelines on how to trade on a profitable platform, you can reach me at (medithgarza68@gmail.com). Bitcoin and other digital currencies are fast on the rise. Don’t stay ignorant when people are collecting good money from these coins. It’s real my dear and if you meet an expert, then your chance of becoming rich is high. I have been studying cryptocurrency like a mad scientist, and to all the people that trust my judgment, tweet with me, appreciation messages and calls about cryptocurrency guideline, I want to thank you and you welcome at the same time. My two cryptocurrency predictions have been precise, I have saved and made thousands of people money as an early adapter of bitcoin with my guideline, I have also educated thousands on cryptocurrency as an investor. This post is not for bragging rights but also to reach people who believe they can become with bitcoin. Now, here’s my thoughts on bitcoin, buy or invest now because the majors are pumping the market and you can make a few bucks. Months ago i discovered a platform that increases my gains on daily basis, the software uses a currency prediction mining tool to bypass all risk and automatically switch to another coin if the value of the coins you stake goes low, now you can see the possibility of winning is high and cashing out is easy. Ethereum, Dogecoin, Dashcoin, Ripple. Hextracoin and litecoin are the coins I trade and invest on, i have collected bigger gains than anything else in my life with the value of the coins I mentioned. I can guide you to become a successful crypto investor or trader and become a millionaire using the right profitable platform that am using to sign up and invest for good and fast profit payout in no time? (medithgarza68@gmail.com)
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Hans Müller (19 days ago)
Math is complicated. Mining packages are easy and trading isn't that hard too. For me till now the easiest has proven to be trading X12 Coin and storing it in SkyWallet.
Miguel Diaz (20 days ago)
Still hate bit coin why use electronic money when u can use the real thing and bit coin is really unstable
Peter Roto (20 days ago)
You do a very good job of explaining this. I actually sell miners and hosting space, and have had a lot of trouble breaking this information down in the way you did. Great video, keep up the good work.
flinx101 (21 days ago)
Where's my money Avi???
Casper (22 days ago)
i Liked the idea of bitcoin, But sadly you can only use it to buy illegal stuff, Ok there are companies accepting btc but not many.
Bob Is The Builder (23 days ago)
Regardless of your country all currency is digital. Cash, metals credit are all digital information. The only reason there are still physical bills and coins because humans are tangible animals.
Vad Chad (24 days ago)
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Shotokan Tiger (24 days ago)
Nice video! I was able to get 0.5 FREE BTC last month by going to ==> #btcsoftx it worked for me!
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Eye Witness (24 days ago)
I didn't get even a single idea
md Monowar (24 days ago)
Nice video! I was able to get 0.5 FREE BTC last month by going to ==> #btcsoftx it worked for me!
Labrona Jones (24 days ago)
This was such a good explanation. This is the best explanation of cryptocurrency that I've seen. I never quite understood mining but finally I do! Awesome video.
michelle r (24 days ago)
Nice video! I was able to get 0.5 FREE BTC last month by going to ==> #btcsoftx it worked for me!
mani N (24 days ago)
Nice video! I was able to get 0.5 FREE BTC last month by going to ==> #btcsoftx it worked for me!
Elsieffe (24 days ago)
Nice video! I was able to get FREE 0.5 BTC last month by going to ==> #btcsoftx it worked for me!
Indio Ystilo (24 days ago)
In all the years I have been reading about bitcoin, this by far is the best and most digestable explanation I have heard. http://bit.ly/2KtyM4i Thanks!
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David Hay (25 days ago)
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michael bonacci (26 days ago)
It will come back. Now is the time for everyone to invest now that the market is close to bottoming out. You should invest in use case cryptos that are able to be used in real life and quality projects like fr8network and Vechain for logistics or Deedcoin and Muirfield IP in real estate.
Hugo Moore (26 days ago)
Not bad, thanks for the video. if you want to dive deeper into money and crypto currencies, this is excellent: The "Holy Grail of Crypto Currencies: Ready to Replace Fiat Money?" https://ssrn.com/abstract=3192924
greg pratt (26 days ago)
I used this guide to just make an extra $100 a week and its going well for me so though i would share :) https://bit.ly/2tsRPlA
belle soriano (27 days ago)
I want to invest LEDU COin because I heard they have burning of tokens this July.Whats your thought about this?
sachin verma ji (28 days ago)
She coin best coin🚀✈
Izwan Johan (28 days ago)
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Elliot Alderson (29 days ago)
The lightning network will take the transactions off chain because they capped the block sizes, so this means in 2 years there won't be enough incentive to mine bitcoin. Bitcoin cash however is the only coin that holds the true rules of the whitepaper and will subsume segwit bitcoin. bitcoin cash is bitcoin.
Sid Bakshi (1 month ago)
What stops miners from sending money to each other and getting more bit coins in the system
anwnimoi tzogadoroi (1 month ago)
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Silver Darcy (1 month ago)
I had a vague idea about the bitcoin centralization but didnt really understand mining. Thank you soooo much for this video. It really filled in all the gaps in my knowledge of bitcoin.
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krissy sawler (1 month ago)
Nowadays more investors are investing on cryptocurrencies because they want an easy life. Cryptocuurencies help them make life easier especially in paying their bills and making different transactions online.
Andley James (1 month ago)
The fact that the Cryptos intimidate most people is the very reason why you would want to be in it. Jumping on the bandwagon earlier than most would give you an edge, both in terms of potential gains and experience. It can be a steep learning curve, but it would all be worth it. Once there’s adequate mainstream coverage on cryptos, the masses will start pouring in, purely because the rates of returns are relatively astounding! The decentralization of cryptocurrencies democratizes traditional powers and empowers the masses. No more shall you depend on financial institutions for transferring money that comes with an exorbitant fee. There are many coins – most notably Bitcoin – that allows users to transfer money to anyone at any location with a fraction of the fees. Not only that, having private wallets to store your coins gives you full control of your money. It’s like managing your own bank; you decide your own rules. That’s what I call ideological empowerment.
Ricky Radcliffe (1 month ago)
bro.. can you review about new digital Coin called FOIN. i hear will iso and partnership with williammartini F1 and FE.
Rudy Hermawan (1 month ago)
There is a new crypto called FOIN. This crypto will be ICOed very soon.... Take chances to have this crypto
chris claim (1 month ago)
furcoins.com is better for bitcoins
Tamás Papp (1 month ago)
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Vinoth Comodo (1 month ago)
website security , could do awesome good job dealing with this type of coin, cwatch web security
no name (1 month ago)
Tech will change... there will be a bit-coin technological weakness exploited... value seems arbitrary and volatile. I Bit coins undermine national fiscal policies of nations. bitcoin is a dog fart. I have no confidence in this.
Cryptocurrency isuru (1 month ago)
Ioana Dumitrache (1 month ago)
http://prntscr.com/jswqvv In the last 6 weeks,the EMPR coin has been the MOST stable coin on the market.From $0.26, now is $1.25. Don't waste time,buy now. At the end of June,the EMPR price may be $2 or more. At the end of the year,it will exceed $10.Buy now:http://www.empowr.com/coin?u=DumitracheIoana …
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JRodgesevant (1 month ago)
Make bitcoin illegal!

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