Still don’t get it?
What email is to the post office (SMTP), what skype is to the telephone (VOIP), bitcoin is to money over ip (MOIP?).
Go back 15 or 20 years, before email was widely used. Do you remember what it was like to send a letter to your grandmother on the other side of the world? You’d sit down, take out a pen and paper, write out a nice long letter, seal it up, walk over to the post office (9–4) and finally after waiting in line for 15 minutes, you’d get to send off your letter to your sweet grandma. Not to mention, it would cost a lot of money and time to do all of this, it would literally take your grandmother weeks to receive that letter. By the time she received it, the news was old and irrelevant. What a great system.
Sending money today
Think about how money travels around the world today. Let’s say your grandma from half way across the world needs you to send her $100 so that she can get groceries for the month. You will need to go to your bank ATM, take out $100. Wait until Western Union is open. Drive to Western Union. You’d end up paying nearly $20 in fees and if you’re lucky, she’d receive the money in a few days. Does that remind you of something?
With bitcoin, you literally just click a button and send as little or as much value to another person for just a few pennies. Whenever I introduce new people to bitcoin, I always share the following video. Check it out.
What is bitcoin?
Gold with a tele-porter
Bitcoin is like gold with a teleporter. Due to the inherent nature of bitcoin — fungible, divisible, predictable supply, impossible to forge, portable, global, etc. — many people equate bitcoin to be like an internet based digital gold. Since bitcoin is inherently interoperable, you can easily send bitcoin to anyone, much like how you send an email.
If you’re looking to dive even deeper, check out Khan Academy. Here’s one of the best technical descriptions of bitcoin, given by Andreas A., author of Mastering Bitcoin. Below, is also another fairly new, but quite accurate description of bitcoin. Check it out: