
How to Explain Bitcoin to a 7-Year-Old - tonydiv
https://medium.com/bitcoins-digital-currency/a9a8c094feaf
======
webwielder
This fails to address the biggest question any self-respecting seven-year-old
will ask:

"Why?"

~~~
tonydiv
Young kids always ask that, don't they!

I'd probably talk about trust, but there's no correct answer here. My guess is
that Bitcoin was created because its creator doesn't trust the government.

~~~
dmix
> My guess is that Bitcoin was created because its creator doesn't trust the
> government.

Also privacy in private markets, so not trusting VISA/Mastercard etc to sell
my transaction data [1].

Plus the decentralized value [2], so not trusting the bankers/finance industry
who have a large influence on the value of state currencies in addition to the
government.

[1]
[http://www.schneier.com/blog/archives/2013/05/the_publicpriv...](http://www.schneier.com/blog/archives/2013/05/the_publicpriva.html)

[2] [http://paulbohm.com/articles/bitcoins-value-is-
decentralizat...](http://paulbohm.com/articles/bitcoins-value-is-
decentralization/)

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vonskippy
Obviously the guy doesn't have access to any 7 year olds.

Besides being way (way way way way way) too long, it's way too complex.

Lottery, transaction, millions, security camera, online, indestructible, odds,
all words that would need their own explanation in 7 year old terms.

This is just more bitcoin fluff trying to ride the buzz.

~~~
eurleif
Well, I'm not sure about 7 year olds, but it's the first explanation of
Bitcoin I've seen that I think my father may be able to understand. I'm going
to link it to him.

~~~
akcreek
I was going to send it to my wife - I think she could understand this better
than how I've been explaining it. I don't know anything about kids.

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munchor
<http://youtu.be/Um63OQz3bjo>

I agree that explaining people (be them 7 or 20 years old) what bitcoins are
and what the fuss is all about is quite complicated.

Usually I just send people that video, but this explanation is pretty
interesting (maybe not as effective as the video, though).

~~~
mrb
The room full of piggy bank analogy is IMHO a lot more effective and accurate
explanation that this video which barely brushes how Bitcoin works. (I too
have been explaining Bitcoin to people since 2010 while being deeply familiar
with its internals.)

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supercoder
"There’s a robot in the room that runs lotteries. Every so often, this robot
randomly chooses a piggy bank in the room, and puts 50 coins in it. "

Is this true ? So saying if I'm a user of bitcoin, will I just wake up one day
to find 50 coins added to my balance ?

~~~
tonydiv
Assuming you're a miner, yes. In order to a be a miner, you just need to
install the program.

~~~
supercoder
Yep maybe the analogy needs to be updated to reflect that :)

~~~
tonydiv
Yeah, I'm not sure how to explain it without making the analogy a lot more
complicated.

~~~
dr_win
Because it is hard to see from the camera how many coins are there in
particular piggy bank, there are working small permoniks (aka miners) with
funny caps.

[https://www.google.com/search?q=permonik&tbm=isch&tb...](https://www.google.com/search?q=permonik&tbm=isch&tbo=u&source=univ&sa=X&ei=iK2FUYT8DOOpiAKM44DYAg&ved=0CEMQsAQ&biw=1440&bih=802)

Permonik randomly wanders the room and re-counts the coins in piggy banks.
Always he erases an old number and writes his count on the piggy bank with
marker.

The robot watches permoniks. He sees how fast they are and if they count well
(their counting is equal the majority of other permoniks for given piggy
bank). The lottery rewards fast and honest permoniks with higher odds of win.

There is one more thing. When doing transaction, you may leave a small number
of coins (aka the fee) under the piggy bank. This is a reward for permonik as
he visits the piggy bank for recounting.

Each permonik has a master and all his revenues go to master's piggy bank.

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serginho
It's just a currency for Silk Road. That's how it is explained. As clear as
when I always remember when I wanna understand how is it addicted to the real
economy.

~~~
tonydiv
That's not true. Just because Silk Road is one of its main uses, there are
many others. I think Bitcoins will do really well in gaming, small payments,
and international trade.

~~~
serginho
I hope.

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joeblau
That explanation doesn't really explain how the coins are mined, but it I
guess for a 7 year old, that explanation should be good enough.

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mwcampbell
What about the kill switch? <http://www.loper-os.org/?p=1009>

~~~
tonydiv
I love this line:

Some people are incensed by “hoarders” – not I. I don’t give a damn. At least
Bitcoin hoarders never had to kill anyone to obtain their wealth, unlike those
who control land and other natural resources.

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arthulia
This is pretty good, not sure about the lottery thing though, since not
everyone is a bitcoin miner.

~~~
tonydiv
Thanks. I agree, it's not perfect.

~~~
eurleif
How about: Anyone can place a security camera in the room, but maintaining one
costs money. The lottery goes to the security camera operators.

~~~
tonydiv
Hm, it doesn't cost any money to gain access to the network though. Anyone can
download the client.

~~~
shawnz
I think the point is that mining costs a little bit of money in electricity,
and mining is more effective the more money you put into it.

~~~
tonydiv
Yes, but it doesn't cost money to view the network's history.

To stay true to the analogy, I would include lottery tickets. However, I don't
think this is necessary. The core concepts are explained.

~~~
eurleif
>Yes, but it doesn't cost money to view the network's history, which is
analogous to purchasing a security camera.

It works if you assume everyone who purchases a security camera makes their
video feed/history publicly available for free.

~~~
tonydiv
But then only one person would need to buy the cameras, so why mention it?

~~~
eurleif
If only one person has a security camera, his buddy can go in the room and
mess with the money, and he can splice in fake footage so no one finds out.

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anklos
As a (7 year * 4) old man, I dont really understand your explanation:(

~~~
tonydiv
How can I improve it?

~~~
serginho
> There’s a room that anyone can access. The room has security cameras that
> anyone can view, and every second of recorded footage is available online
> forever.

's/anyone can access/noboby can access/'

's/anyone can view/noboby can view/'

>Naturally, these piggy banks have coin slots, and everyone can see which
coins are in which piggy bank.

's/everyone can see/nobody can see/' (Hide it == Show it)

> These piggy banks can never leave the room.

's/leave the room/leave to the light/'

>Then, I walk into the room with a ski mask on.

>> with a ski mask on.

Yeah, You mean it!

>Anyone in the world can see me on the security cameras, but not my face.

>> but not my face.

That's what we are paid for.

>“Who made the robot..?”

The same who made these schemes and manipulations to rule the crowd.

~~~
tonydiv
I don't quite understand your comment, mind elaborating?

~~~
serginho
Nobody knows what he works for. I mean mining. Is it for good things or not.
That's the summary.

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shurcooL
How do I create/get my own piggy bank with a key?

~~~
tonydiv
Good question. Anyone can sign up for a piggy bank outside the room. The robot
also takes care of that :)

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webwielder
Bitcoin is a lot like quantum mechanics. Nobody really understands it.

