Bitcoin Explained to a Skeptic – Ep11


hi guys in today’s episode we’re gonna
talk about how to explain Bitcoin and
crypto to your little sister so I’ve got
my little sister Djin here today and
she’s gonna ask me a few questions about
crypto and what the hell it’s all about
this is Aussietai and you’re watching A Crypto Current Affair. So we’re in my
hometown of Melbourne and I’ve got my
little sister here to ask me some
questions about Bitcoin. So Djin,
how you finding hearing about Bitcoin
from your friends and in the news um I
heard about it on the news I’ve with you
know spoken about it with friends heard
mixed reviews I honestly don’t know
anything about Bitcoin so I’m hoping to
learn a little bit more today great so
um Bitcoin you know it’s a virtual
currency so it’s it’s on computer
systems around the world and that’s
where the store a value is health so
it’s Bitcoin real real I guess it’s as
real as anything so when you say is it
real there is a store of value it is
stored on computers around the world and
I can exchange it to people so I can pay
people with Bitcoin I can even use it in
some shops so I went to a pub in Sydney
recently there was a Bitcoin ATM and
they had a sign saying they accept
Bitcoin there as well so that’s pretty
real but but it’s really cool question
that you asked because you know when you
think about money is money real is that
piece of paper that that we exchanged or
plastic now that we exchange to each
other
is that real it’s it’s real because we
as humans put a value to it similar to
gold as well but we there’s a utility
the utility and the store of value so so
I think it’s pretty real and then you
know when you get paid you get paid into
a bank account on you so you don’t get
get a yellow envelope with cash anymore
I remember my first job many moons ago
at Cole’s at at the supermarket that’s
how I got paid every fortnight they give
me a pay packet a little pay packet the
bet hasn’t happened
forever so so you get virtual money paid
into your bank account you can pay your
credit card off with that virtual money
and then you can get use your credit
card to go buy things in the shops with
your virtual money so how real is money
really it’s real because we’ve all say
it’s real but can I trust it trust it
how is in it still so new we’ve heard
mixed reviews
that’s a great question actually so
that’s a great question
so can you trust it so in the about the
ten years that it’s been around Bitcoin
itself the the source code of Bitcoin
has never been hacked so that’s pretty
stable and you hear about banks being
hacked and exchanges being hacked yes
that happens but because of the nature
of Bitcoin and how it’s decentralized it
means that all the data isn’t held in
one data center or or a data center and
a backup Center so it’s not one point of
attack you have to attack all the
computers that are running the same but
Bitcoin code and running the Bitcoin
ledger so that’s it’s pretty secure and
really interesting today I was listening
to Andreas Antonopoulos and he was
talking about how yes big strangers have
been hacked we can’t blame the currency
can’t blame Bitcoin because that’s never
been hacked so if a bank robber went
into a bank and stole your money you
behind the bank not the currency so you
mentioned before being able to pay using
your credit so pay using Bitcoin while
your credit card can you tell me a
little bit more about that yeah yeah
that’s a really interesting question
because there are actually companies now
various companies that are trying to
bridge the gap between cryptocurrency
and real fiat currency so there’s a
interesting company based in Singapore
called 10x and they actually release
Visa cards that you can load your
cryptocurrency onto and then once it’s
on there you they do the exchange from
crypto to visa and then the payment gets
process by Visa and a shop so
essentially you can use that Visa debit
card to to go purchase stuff and
furthermore there’s other companies like
Omisego there like a PayPal of Asia
and they’ve already got a business
around transferring money from people to
people and so they’ve launched a coin
called Omisego and a similar concept
there and in Australia there’s a website
called living room of Satoshi and you
can actually load you your
cryptocurrency there and pay your bills
with with crypto so that’s really great
that’s name so do you are there any like
how do the fees work with Bitcoin and is
it does it still go to the bank so the
beauty about cryptocurrency and what
bankers are very scared of so you there
have been a lot of attacks by investment
bankers and stories of recently the
Commonwealth Bank banning their credit
card transactions to coinbase which is a
place where you actually use cash we use
a credit card to buy coins so they feel
threatened by it
so rather than embrace the new
technology and help customers they’re
actually pushing customers away so what
they’re gonna find is that another Bank
another thing is gonna go you know what
we see a gap in the market we’re gonna
fulfill this and you know the
Commonwealth Bank will be left in back
there, but I do digress so what I
actually just wanted to touch on the I
guess our concern about the point you
just raised if if some of the big banks
aren’t on board I would feel that that
there’s probably a reason why that maybe
it is a risky investment or a risky wave
so I’ll tell you this banks are in the
business of making money right and if
they see threat to their business they
are trying to block that business you
know the argument about are we it’s a
risky investment we want to look after
our customers
why don’t they ban all ATMs at the
casino which is just across the road
here in South Bank you know if they
really care why would they do that why
wouldn’t they do that they don’t because
it’s part of the old system it’s part of
away they make money off you yeah so you
know I was watching another video which
is funny and this guy was saying you
know Jamie Dimon he’s his JP Morgan he’s
an investment banker Oh make a lot of
money this some crypto can actually cut
out a lot of these fees what they might
not make their bonus shot Cara but yeah
so they say there’s a threat to their
livelihood so that’s why they are
lashing out against it some of them not
all of them but um you know don’t for a
second think that banks necessarily care
for your welfare because they just want
to make money so what is the benefit of
me using Bitcoin so the benefits are
that it’s borderless so you can transfer
money so our mom’s overseas at the
moment so if she needed some cash and
she had a Bitcoin wallet we can actually
send her some without using a bank and
it couldn’t happen pretty fast as well
so with with cryptocurrency there are
various coins at the moment so there’s
it coined the oldest in the first the
way that it’s evolved at the moment and
the way that technology is at it’s like
a store of value so it’s more akin to
gold so like gold it’s not as easy to go
on a shop and shave a few gold shavings
and buy cappuccino in the street but so
it’s more of a store of value and where
you want to transfer large amounts but
there are other currencies that have
come into play one that I really like is
like coin and litecoin wants to be the
silver to bitcoins gold and like coin
has really fast transaction so I I sent
thousands of dollars recently
cross-border and using like coin and it
cost me 60 cents so it’s yeah and it
happened within minutes so it’s it’s a
huge saving if you went to traditional
companies they charge you three four
percent of your money to do that
transfer or and a setup fee so it’s a
big disruptor and that’s where it’s
democratizing money so and it’s allowing
people say in the third world who don’t
have access to banks access to money
like like the mobile phone really helped
a lot of the
the African population get get into the
modern systems I think this is a way for
them to access banking and with reduced
fees and you know be able to live off it
and transfer money and feed their
families like like in Venezuela for
example where you know Venezuela they
had a really stable unstable currency
even more unstable than Bitcoin and so
that was the preferred value that the
average person was mining Bitcoin and
using that to to buy goods and services
um so if we were to transfer money to
Mum
how would she withdraw this money okay
slow if it was in the case of mum what
we’d need to do in future not on this
trip is to set up one of those visa
debit cards for her and then I have it
ready and then once she if she used all
the money then we would transfer money
into that account
so we’d have an address or a QR code
that we would transfer our wallet into
hers and then it would be there ready
for her to go spend in a shop sure so
she treat just like a credit card
correct yeah great as Utah so I’m
interested in buying some bitcoins how
do I go about doing that
so we’ve it’s a buy bitcoin you need to
get onto a Fiat on-ramp Sophia means a
currency backed by government pretty
much so in Australia there’s a few
places you can go to including
independent Reserve coin jar for example
so I’ve got a link below where you can
click on it and purchase some coins but
I have a video also I’ll also put this
on the link where you can use coinbase
coinbase I find is really good because
it’s pretty cheap the price of the coin
so it’s close to the global price
whereas I find in the australian fiat on
rent the VIX changes the price has
always been higher than then you get in
america or in a Asia for example so and
the beauty of coin base is that you can
use your ing debit card to purchase the
coins and and you don’t get charged
foreign transaction fees if you use that
process so one you get a really cheap
right even
with the coinbase fees it’s still
cheaper than buying sending cash to an
Australian exchange and buying your
Bitcoin there right so as each I I’m
ready to invest $500 into cryptocurrency
what will that look like for me I will
bring up my Bitcoin base account there’s
an app that you can download for it so
at the moment the price of Bitcoin is
twelve thousand five hundred and
fourteen Australian dollars you don’t
have to buy one whole Bitcoin the beauty
about Bitcoin is that you can divide it
into eight decimal places so five
hundred dollars is about 0.4 of the
Bitcoin so you can actually go into coin
base and and load up your credit card
and then purchase it there and the
beauty about coin basis that like
superannuation or in America I think you
call it 407 K you can set a regular
purchase so you can purchase it every
week or every month a hundred dollars or
whatever and and then that can build up
your portfolio slowly but I’m not a
financial advisor so before you do that
go go seek professional financial advice
and youtube at home so k conversations
with my girlfriend’s about
cryptocurrency and we’re all really wary
still can you tell me a little bit more
about that so with anything new it’s
there’s gonna be skepticism around us
and there’s talk that ponzi schemes and
that you look main here and whatnot I
guess when you look back anything new is
gonna be feared but when you look at the
code of Bitcoin Bitcoin is not being
hacked at all the coin itself so it’s
really secure
it’s the oldest and and the most
valuable cryptocurrency on the market at
the moment the other aspect of security
is that once you’re your own bank you do
need to take some precautions on it I
have done a video about the legend nos
which which is where you can load up
your your coins on to this soap it some
people want something tangible that they
can hold so they put it on to the
hardware
what’s great about that is you need a
opinion to access your wallet on there
so there’s another layer of protection
for your coins this actually reminds me
of a radio segment that I heard on
Hamish and Andy where they purchased a
Bitcoin and then they forgot the
password does that mean that they’ve
lost their Bitcoin it’d be like you if
you grabbed some paper money you put it
in a bag and you dug it in a hole and
you forgot where you put it you’ve lost
it so you have to you have to you have
to take your security seriously so the
thing with banking is that you’re paying
all those fees because they add that
layer of protection so the average
person would probably not have the
energy or the the discipline to manage
their money their bitcoins and that’s
why their outsourced at all back and
that’s why the bank the banks in
Australia in particular make billions of
dollars because because of that function
and it plays a valuable function but for
people who are willing to take on that
that work that that’s the people who are
willing to take on that risk then you
know why should they pay the banks for
that so what are the risks what are the
known risks of cryptocurrency the known
risks of cryptocurrency well like with
any banking any money as soon as people
people hear about someone having money
they’ll be scammed so similar to your
bank account you can get fished so
there’s been some recent icos which are
coin launches and they’ve been phishing
scams where people have been emailed
about these new coins and sort like an
official email saying send your money
here get a bonus and people have fallen
for an excess bitcoins to this this scam
so you’ve got to be on your toes I’ve
heard about viruses as well where people
where they copy and paste their wallet
address in to unlock their their money
there’s some viruses that actually
change that paste address too
the hackers Woollett and so you rather
than sending to you accept their account
so so there’s some precautions you need
to take so why they’re reputable
websites that I can go to where I can
see you know if I am being scammed or
about to be scanned so with with any
internet security whether it’s crypto or
your banking always so if you get an
email just reply to it and see if the
the domain name that you’re applying to
is for example so if it’s Commonwealth
Bank comm today you make sure it’s the
same as the secure Commonwealth once you
always check the VIN incoming email
domain or the website so if you’re
logging on to your wallet to my ether
wallet comm make sure that the URL in
your web browser is has the padlock and
is that and it isn’t directing you
somewhere else so it’s the same it’s the
same precautions you take for for your
back internet banking Ozzy tai I’m still
wary where can I go for more information
you’re really tough audience today
aren’t you but there’s a lot I admit
there’s a lot to wade through on the
internet so I’ll post some comments and
information and links down below on
sites that I’ve found valuable and you
can learn all you need to know on a
crypto current affair as well so stay
tuned to this channel and I’ll add more
and more instructional pieces as well
including the coinbase and the ledger
wallets and and more videos in the
future right look I’m still wary what’s
the next step for me to be more informed
well look this I admit there’s a lot of
information that you need to wade
through on the internet so I’ll post
some resources that’ll help you explain
about Bitcoin what is the blockchain
inally down below and and you know get
yourself informed and hopefully we can
talk about it in a future video because
I know you’re a really tough audience
heads up you know you’ve got to make up
your own mind if this is for you or not
definitely I think this was a perfect
first step for me and I’ve learned a lot
today
I’m still weary as you said but I am a
gonna learn more and I look forward to
watching your next video
great thanks Jim this is Aussietai and
you’ve been watching a crypto Current Affair
with guest star Djin, my little sister –
stay tuned for more episodes on crypto
and if you like this episode and more on
that please put a comment below pick
like and subscribe and we’ll see you in
the next video bye for now
click like and subscribe and join me on
this crypto current affair.. Just because its
doubled doesn’t mean it’s a bubble!

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