Monday, December 22, 2014

Simplify bitcoin explanation

I've had an idea to give bitcoin as a present for Christmas, well from the resources I've found online nothing was exactly what I wanted. So I had to create my own.

I want something with short concise explanation of what it is and how to use it. where it's accepted and why bother using it. All the links are intentionally not linked because this is to be printed and it would look better without the underline and blue (if color printer). 

I was editing it in google doc. Please let me know if there's any corrections or other ways to explain which might be simpler or easier!

You’ve got Bitcoin!

What is bitcoin?
  • An open source digital currency in which encryption techniques and peer to peer technology is used to regulate the generation of funds.
  • Operates independently of central banks or nations.
  • Can be used to send any amount of money (from as little as 0.00000001), almost instantly to anywhere in the world with minimal transaction fees (~0.0001)
  • Every transaction is one time and cannot be reversed which makes it similar to cash
  • Check current bitcoin to USD exchange rates here:

Where is bitcoin accepted?
Some examples:
  • - Gift cards from 200 retailers including Sears, Target and Homedepot
  • Find local retailers with or

How to get bitcoin?
  • Can be purchased or sold through online exchanges or trusted sites, for example: or
  • In person, for example:
  • At a Bitcoin ATM

How to use bitcoin?
Bitcoin transactions use digital “wallets” which consist of a private and public key pair.
  • The public key can be shown to anyone you wish to receive payments from and there is no risk to showing it to anyone and is considered your "address".
  • The private key should remain a secret because it can be used to send payments from the wallet. Can be encrypted with a password to make more secure.

Wallets can be stored offline (also known as cold storage - the one provided):
  • Printed on paper (can be generated here: https:/ or

Or online (also known as hot storage - because the device is connected to the internet):
  • Hosted locally on your computer/phone/tablet (can be generated or imported using the private key with or
  • Hosted by an online web service with accompanying apps (

How to use a wallet?
  1. Send payments with your wallet by using a web, android or iOS app which allow you to enter the public address of the recipient or use the phone/tablet camera or webcam to scan the qr code provided by the requestor.

  1. Receive payment - provide the sender with your address or qr code and they will send you the payment directly.

  1. Check your balance by going to{address} - where the {address} is your public key.
For example:

  1. Keep your wallet secure by not sharing the private key and password with anyone. Have a strong password and always generate the wallet with a trustworthy source. It is recommended to use multiple wallets to split up funds and not keep large amounts on any single wallet.

Getting started
  1. The simplest way to use your new wallet is to install (or search for “mycelium” on the app store) on your phone
  2. Scan the private key below with the import, using the camera function, into the app.
  3. Make sure to encrypt: backup and password protect both your phone and the app.
  4. You can now send and receive payments on your phone from and to any address.

<insert private and public keys here from>


No comments: