On a purely conceptual level, the basic ideas behind cryptocurrency aren’t that hard to understand. It’s when you start digging into the technical stuff that things start to get complicated. If you don’t fully understand one of the many unique technical terms or distinctions that cryptocurrency is known for, it can also be a little intimidating to ask for help. You might have a rough idea how “bitcoin mining” works, for instance, but have no idea how it actually functions in practice. Thankfully, there are plenty of excellent videos out there that can help you gain a much better understanding of these complex and confusing topics.
Let’s take a look at four videos that explain some of the biggest beginner questions in cryptocurrency.
1. What is the “bitcoin halving” and why does it matter?
In mid-May 2020, bitcoin will go through its third “halving” event, splitting the block reward from 12.5 BTC to just 6.25 BTC. If you’re already up to speed on your crypto lingo, you know exactly what this means. If you’re new to cryptocurrency, however, you’re likely still unclear on what’s happening, why it’s happening, and what it implies about the future of bitcoin’s price. Don’t worry! It’s not that complicated. Just watch this short, easy-to-follow video from 99Bitcoins.
2. How do you securely buy and store bitcoin and other cryptocurrencies?
One of the biggest problems with getting started in cryptocurrency investment is figuring out how to actually buy the darn things. Worse yet, securely buying a digital-only currency can be a problem if you don’t understand how to effectively protect your investment. That’s why this video by YouTuber CryptoCasey is particularly helpful. It’s a comprehensive, step-by-step guide to buying bitcoin and other cryptos in the most secure way possible.
3. What is “the blockchain” and how it is it different from bitcoin?
The ground-breaking 2008 whitepaper published under the name Satoshi Nakamoto did more than just create bitcoin. It also created an entirely new form of permissionless, decentralized record keeping known as the blockchain. But what exactly is a blockchain? How does it work? Why is it better than other kinds of shared online record keeping? What else can you do with it? In this video from IBM Cloud, developer Sai Vennam gives a not-too-technical overview of all things blockchain.
4. How does cryptocurrency mining work?
One of the most difficult cryptocurrency concepts for non-computer science people to wrap their heads around is the idea of “mining” money. The shorthand answer is often that the giant network of computers used in crypto mining is “solving an incredibly complex mathematical problem” to earn bitcoin or other tokens, but this doesn’t really answer the question. In this animated video from 365 Careers, you’ll learn how cryptocurrency mining is actually an innovative solution to the “Byzantine Generals Problem,” and why that solution has proven to be a complete game-changer for decentralized digital currency.