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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 (5446)
Karel Fyrbach (18 hours ago)
Finally someone who can explain sth.. Thx man..
Nancy mor (19 hours ago)
Crypto is the best in the world and I have made more profit on it.
Bright Dennis (1 day ago)
As a crypto expert and bitcoin trader I've been able to help crypto traders who needs help on how to earn profit investing and trading in bitcoin and other crypto currencies. I can help you increase as low as 0.3 btc to 1.5 btc in no time. Contact me on brightdenniscryptoexpert@gmail.com for any questions about how you can trade and start earning profit in bitcoin or any other coins .
Falzerano Smith (1 day ago)
مرحباً ، أود أن أعرض عليكم جميعاً شخصاً يميل بسخاء لمساعدتكم ومساعدتكم في الفوز بكل صفقاتكم. "عملة" Crypto "هي واحدة من أفضل الأشياء التي حدثت لي. كنت أفقد كل صفقاتي التجارية. التقى السيد فلاديمير كوت الذي يساعدني بكل إخلاص على التجارة ومحفظتي نمت من 1bitcoin ثم إلى 31bitcoins الآن.كما يمكن أن تصل إلى 10bitcoins في غضون أسبوعين.سؤال ببساطة السيد فلاديمير كوت كيف يمكنك تحقيق ذلك على بريده الإلكتروني (bellinadeluca@gmail.com). يجب أن تبتسم أيضا! Hi, I'd like to introduce you all to a man who is generously inclined to assist you and help you win all your trades. Crypto currency is one of the best things that have happened to me. I was losing all my trades until I met Mr Vladimír Kott who wholeheartedly help me trade and my wallet grew from 1bitcoin then to 31bitcoins now. You too can make up to 10bitcoins in two weeks. Simply ask Mr Vladimír Kott how you can make it happen on his email (bellinadeluca@gmail.com). You ought to smile too!
brian parker (1 day ago)
Believe most beginners who watch most of the tutorial videos get very confused, I saw reviews about brianparker771@gmail.com, months back about people he has helped trading , He is a good and reliable trade broker, made me good profits and has helped me raise my trades accurately with his strategies
sidrick007 (3 days ago)
if it free and cost you bitcoin or $$$ it a scam if you want to help send btc to 1MwL7twxsX5V27SQz97QpmYFGAgPs9Hvkp just for fun :)!
hailey johnson (3 days ago)
Don't listen to the shills you guys! this is the future. I am so excited
hailey johnson (3 days ago)
I love it. it is the end of the banks, which is why there are all these comments and articles bemoaning it as a "scam" really the us dollar is scam
sudipta debnath (3 days ago)
XRP (XRP) Is Skyrocketing And Could Reach $5 by 2019 https://oracletimes.com/xrp-xrp-is-skyrocketing-and-could-reach-5-by-2019/
Annie Tracy (3 days ago)
Finally found a way of getting my bitcoins doubled on a daily ;the last wealth salvager is the one responsible for this feat
Zachary Mccoy (3 days ago)
But what the hell gives it value? Im just more confused
Engel (3 days ago)
My biggest regret, honestly, was giving up on mining after the value dipped slightly. If I had just kept my bitcoin without spending it until the end of 2017, I probably could've been set for life.
darcypjohnson (4 days ago)
if you want the best wallet and exchange to hold your bitcoin click the link https://cobinhood.com?referrerId=3a382982-85b2-4d10-9581-f9246d58c085
darcypjohnson (4 days ago)
its free to trade
Ekvtime Antadze (6 days ago)
This is very interesting and sensitive information for almost 138k people https://blocknews.ge/knowledge/will-the-g-d-p-r-flex-its-muscles-after-british-airways-folly?/-ea/
Read BTC (6 days ago)
Cut the learning path with our Experts, seats are limited: https://www.youtube.com/watch?v=vOgAFF4gdD0
kurt hoffman (6 days ago)
IMPORTANT UPDATE: There is a division of a long established company that is about to launch which has many of the features that we loved in USI TECH - here is more information on this new opportunity - NOTE: I will be adding people in order - as i receive the information that I need - (see below) http://www​.cryptoprofitability.com NOTE: We have needed something for the masses - We have outstanding opportunities in Masternodes, Trading software, Long Term trading BUT not everyone has $600, $2000 or $6,000 to get started - this is affordable to everyone and has all the positives of USI (that we loved) with low cost entry of $40, daily returns, compounding, great rewards for sharing and it's going live in the next week but without all the problems. Can be totally passive or a great business comp plan too. It's perfect for those who want a simple, NO brainer program, low cost to get going, and right at the start to get the first mover advantage. It was brought to me by a few well respected friends and leaders in the industry. I've been taking a good look and like what I see so far, although we have more due diligence to do. It makes perfect sense to lock in a position with a minimum entry of $40 for 1 Pack paid with BTC if only to see it in action. Each $40 sale (BTC) is split - $20 as capital to be used to generate daily returns - $20 to be used for commissions and company operation costs (Which makes it sustainable) Pack returns - up to 0.66% daily for 365 days paid on the $20 capital (so 0.33% per day based on total pack cost = approx 10% a month) - $20 capital returned at day 366 How are returns generated? Earnings come from a well established licensed trading company. - 80%+ from off the book BTC trading with foreign exchanges, BTC ATMs, Online Gaming Companies - Mining, Crypto trading on major exchanges - Forex Trading Pay Plan It's a 3x12 matrix with compression. - 3 personal sales to earn 6 levels - 8 personal sales to earn 12 levels Personal sales - 10% Matrix Commissions (with compression) Level 1 - 1% Level 2 - 5% Level 3 - 1% Level 4 - 5% Level 5 - 1% Level 6 - 5% Level 7 - 1% Level 8 - 5% Level 9 - 1% Level 10 -5% Level 11 - 1% Level 12 - 5% WHAT TO DO NOW? http://www​.cryptoprofitability.com With matrixes timing is important. All I need from you is to let me know if you want in and the following details. Have a listen to this recording of a recent webinar on the opportunity with the majority owner who has created over 10 MLMs over 10 years and all companies still trading today. For $40...it's worth a go to generate a great income - and please remember going forward - to withdraw your seed money!! - We know there are many variables we do not control, regulators, authorities etc etc - so protect your self.... use this to grow . Let me know asap if you want in...I will be placing people manually in key positions. Kurt http://www.eyelinetrading.com/kurt1
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Eterna Pesadilla (9 days ago)
Sounds like internet is turning into its own country. The first virtual country.
BrandMentality (9 days ago)
Here is the best guide I could find. Covers EVERYTHING from mining to trading, wallets, scams, books and guide links with more video info: https://www.hustlemillenial.com/script/cryptocurrency-how-do-i-get-started
Impression Unique (10 days ago)
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mericy25 (12 days ago)
Who else paused to admire how cute the guy is? Only me, ait, sharp!
Tragic Ending (12 days ago)
you should do asmr
CroSniper XD (12 days ago)
When you wish to grab the solution to get btc you simply want to look up " *bitcoin pranaholistico* " in the search engine. I hope you will get them too.
Nevkingselegy war (13 days ago)
Isn’t bitcoin first created in 2008?🤔
Fredrik Myhre (1 day ago)
the whitepaper was release 31. october 2008 but the blockchain started january 2009
JUN ERROL AGUILAR (13 days ago)
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jopimp14 (15 days ago)
Now explain how to turn Bitcoin into cash, where you can actually take the money out
jopimp14 (15 days ago)
So you get paid in Bitcoin just for keeping track for other people. Same as accounting and book keeping. If a person good at math could learn how to do Bitcoin minning, they would be set. After a while they'll learn how to make money like the others who actually own Bitcoins
Seik Reznik (15 days ago)
Hmm, coin created by a circle of people owning them.
Adil Lhadi (15 days ago)
get it here for FREE shipping https://www.ebay.com/itm/223139678468
TAMIL FUN (17 days ago)
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MEDIUMBIGG (18 days ago)
Super legal I love it and 1000X
dance4gold (18 days ago)
https://thebitcoinnews.com/pac-accepted-here-pac-the-global-mass-use-crypto/
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guys this site is spectacular to win bitcoins for free and fast. Login with Facebook, Click in the 6 AVAILABLE LOYALTY REWARDS SITES, look for the Airdrips box,start timer and earn pay every wednesday / thursday to reach the threshold that wakes up in about a week http://www.airdrips.com/earn/?dao_ref=wg8YmHDbB8
Ryan S. Madero (19 days ago)
It’s different now with the lightning or raider network plus other Blockchains have computational algorithms way better than bitcoin it’s just that bitcoin fame first and everyone else now a days is building a protocol or a Blockchain to solve the Blockchain problems that bitcoin has cause of old technology that wasn’t built to scale... but that was a very simple lamens terms or for dummies if you will
Ria Kothari (19 days ago)
Great explanation! Thanks alot !!
You could buy bitcoins at Bitkub.com. We are Thailand's Leading Exchange
Rutar1 (21 days ago)
https://coinmarketcap.com/currencies/melon/#markets
mayi moon (21 days ago)
All Btc users start you buy and trade MAC Coin On https://crex24.com/exchange/MAC-BTC Matrexcoin to support Renewable Energy We would like inform you Matrexcoin added to coinpayments wallet
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David McLean (23 days ago)
Here's my top 3 reasons to invest in cryptocurrency right now: https://www.youtube.com/watch?v=jwRQju18DkM&t=36s
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OceanBlueLady (25 days ago)
Cool, thank you!
Mark Jonny (26 days ago)
Thanks for the following! I'm Jonny Mark from Los Angeles California and I'm a professional forex trader and Bitcoin miner. I love networking with new people, let me know if you ever want to talk forex or learn how make money anytime, and you my friend where are you from?
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Calin Falcoseanu (26 days ago)
For fun whit cryptocurrency . I recommend https://s2.cointiply.com/r/51Nn5 . Have good faucet and mining game .
rohith patil (27 days ago)
https://www.traveldiariesallaroundtheworld.com/2018/08/statusofcryptocurrency.html?m=1
Sulaiman Shah (28 days ago)
great video keep it up
Sulaiman Shah (28 days ago)
https://www.binance.com/?ref=10920398
dhivyan awesome (28 days ago)
I am from year 8 and I get this! you are better of reading other articles and then watch this
Caroline Nongwa (30 days ago)
Brilliant explanation!
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jay jay (1 month ago)
Hold on to your butts, mega bitcoin bubble-burst coming your way soon
John Medici (1 month ago)
why does it have value??
John Medici (24 days ago)
I am stupid
Pharmakone (1 month ago)
good bro , you can see here all about crypto www.todoinone.com
d Rodriguez (1 month ago)
So my son a miner on mindcraft I wonder if there training him to be a banker for bitcoins
Larodney Dixon (1 month ago)
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Karl Marsh (1 month ago)
You'll want to keep an eye on cryptocurrency, it will leave you wondering how much more you could have made, if you kept a steady eye on the big picture and avoided the nonsense.
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Cariel Lay (1 month ago)
I forgot my wallet password and I had so much bitcoin in the wallet i couldn't let go I tried the 12 word phrase I couldn't recover damn thing I was hyper and worried a month later I was in Russia for a summit where they discussed so much about crypto currencies and it future during the break I was discussing with one of the delegate that attended the same summit I told him about my ordeal in crypto I was scared of investing more money he smiled and he told me he knew of a firm in Russia that would help out he said they are one of the set of hackers in Europe he told me would help. I was doubting I felt it was impossible with all read on crpto. He didn't let me down and never disappointed me. Been scammed twice but summoned my courage when I reached the computer guy (hackerrobert001atgmaildotcom) who helped put things together. Until you meet the right help, things might be difficult for you but once you key into the right direction, help will always come your way.
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Mamadou Wann (1 month ago)
https://www.kognos.co/blog/what-is-blockchain-how-can-you-incorporate-into-your-business
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http://ltcmania.com/?i=46692
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Mariann Mariann (1 month ago)
Also, how we can not replicate a private key?
Lance V (1 month ago)
Well you can replicate your private key for yourself but never give that key to anybody. Others cannot replicate it because it is a long long set of numbers and letters.
Guy Kashtan (1 month ago)
Initiative Q is building a new payment network and giving away significant sums of their future currency to early adopters. It’s by invite only and I have a limited number of invites. My personal invite link: https://initiativeq.com/invite/SdzQecUU7
Xyussi (1 month ago)
JUST TELL ME HOW TO GET RICH ALREADY
Hayati Husain (1 month ago)
this is one of the best to get much2 more benefit from mining and also marketing plan...now everyone can get more income from ur room.. https://dominant-finance.com/members/signup/u/Maxcap
Bogdan G (1 month ago)
Hi, I'd like to ask anyone in a better position than me to help me. I have to undergo surgery to remove a growing lump on my neck and can't afford it. The price is around 220 Euros.Anything is highly appreciated, I managed saving around 60€ myself so far. bitcoin:1Ayq7WW8dtERkBZ5VomyLApPYv8oJ1WADc Thank you.
taikhoan100 (1 month ago)
Good project
Altcoins Bitcoin (1 month ago)
Be a blessing!! Send 0.01 bitcoin to the adress: 139eKHK4egTwSDEwus1QnUS27Fi1eTtmPh
phmaximus (1 month ago)
I smell a scam.... Ive never had problems transferring money around the world and im concerned there is little to no protection, u can rave on about how it works, but the bottom line is if someone gets your so called "key" ur screwed. there is no organization that will warn you someone is messing with your account and im doubtful you would get your money back. When you compare it to the systems banks use to detect unauthorized transactions its crap. I would use it for only minor transactions but the thing is Paypal already have that covered, and reinventing this overly complicated wheel is not the solution
Michelle Rose (1 month ago)
phmaximus No Scam. Bitcoin can be generated by a software daily to your blockchain or coinbase. I actually purchased it and it worked. btcmetadata.jimdo.com
Bitcoin Miner (1 month ago)
https://btcpool.io/165287 <--- bitcoin miner
L (1 month ago)
Nice explanation! Thanks!
Sherry J Mendez (1 month ago)
I invested 1.5btc at kloviaclinks. com and I got back 14.99btc within 2 days. The risk was worth taking cause I am so happy and grateful
Bling T (1 month ago)
Hi hope this ok thanks https://stakecube.net/?team=Blingdog try this free coins
Ryan Christians (1 month ago)
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My Name Is a dead Man (1 month ago)
To use Bitcoin is to be free.
Ghost 450 (1 month ago)
free ledge nanos ----> https://promo.nimiq.com/
Kimmaline (1 month ago)
I watched an entire documentary on Bitcoin and learned less than I did in this SciShow. You guys rock.
Bruce Roeland (1 month ago)
https://Rentminer.net/?ref=5b72e3e5a10ce legits site
chococookie Lord (1 month ago)
2:34 the guy that cheated was Romanian!!!!
sagar singh (1 month ago)
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Doctor Mike (1 month ago)
Bitcoin trading
Drift 42 (1 month ago)
My personal best video of all time
Big Dwz (1 month ago)
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FaMulan (1 month ago)
Knowledge really is power. Here's a REAL ACTUAL WORKING tip. Join a Farm and Mine Bitcoins
Music Box (1 month ago)
wow this is great, i will do this, gotta join this space asap
Dino (1 month ago)
Great solid info. Very helpful
dimple fever (1 month ago)
this works, i do this too and with Julian
Rocks Troy (1 month ago)
julian Kuschner makes me over 20,000 weekly, great investment
Alvaro Acwellan (1 month ago)
So miners do something sensible beside dumping a huge amount of low entropy energy into haphazard information and heat - they keep this monetary system running. I'm pretty concerned by the ever increasing size of the block chain - if it aims to be the (a) currency of the future it'll need to prevent millions of computers wasting huge amounts of CPU time (and pumping out tons of CO2 into the atmosphere) while carefully munching through insane heaps of guano, oops, I mean data, that has accumulated since the early 21st century, every time you buy a sandwich.
Lance V (1 month ago)
It is too costly to use bitcoin for small items today. But people are working on solutions that consolidate the transactions off the blockchain,.then broadcast them as a single lump of transaction. There are other cryptos that dont use much energy at all. They are not quite as secure as bitcoin. But could think of bitcoin as your savings account and some other coins as your wallet spending money. They are working to make some of these coins interchangeable. One project is called lightning network. Other wallet type coins could be litecoin, ripple, nano, dash, monero, and many more. There probably will be infrastructure built that will accept all these coins but then again bitcoin would be the best most secure savings account
puss48 (1 month ago)
bit coin is so famous but who created it is a mystery
Elva Marengo (1 month ago)
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Rupesh Garg (1 month ago)
MIND BLOWING!
Alex Alex (1 month ago)
I have watched 100 videos about bitcoin/blockchain and STILL not understanding 🤐😒
Lance V (1 month ago)
What parts are you most wondering about?
Derrty Crypto (1 month ago)
I also didn't get it before when I first started. I attended the last crypto currency summit..It was a wonderful experience. My discoveries is fetching me huge earnings. I'm glad i was part of the training. My Btc wallet been smiling. I have so much trust trading with the best strategy on most profitable platform/models after contacting this pro trader, Christine. Be sure to drop by for free guide/advice from *Email: christineannsmith0@gmail.com *Telegram: +1 253-501-6601
Teodie Garingarao (1 month ago)
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