Description
“Antony helps us all clearly understand the mechanics of bitcoin and blockchain.” ―Rob Findlay, Founder, Next Money
#1 Best Seller in Investing Derivatives and Natural Resource Extraction Industry, Futures Trading, Banks & Banking, Energy & Mining, Monetary Policy, and Computers & Technology
There’s a lot written on cryptocurrency and blockchains. But, for the uninitiated, most of this information can be indecipherable. The Basics of Bitcoins and Blockchains provides a clear guide to this new currency and the revolutionary technology that powers it.
Bitcoin, Ethereum, and other cryptocurrencies. Gain an understanding of a broad spectrum of Bitcoin topics including the history of Bitcoin, the Bitcoin blockchain, and Bitcoin buying, selling, and mining. Learn how payments are made, and how to put a value on cryptocurrencies and digital tokens.
Blockchain technology. What exactly is a blockchain, how does it work, and why is it important? The Basics of Bitcoins and Blockchains answer these questions and more. Learn about notable blockchain platforms, smart contracts, and other important facets of blockchains and their function in the changing cyber-economy.
Things to know before buying cryptocurrencies. Find trustworthy and balanced insights into Bitcoin investing and investing in another cryptocurrency. Discover the risks and mitigations, learn how to identify scams, and understand cryptocurrency exchanges, digital wallets, and regulations.
Learn about:
- Blockchain technology and how it works
- Workings of the cryptocurrency market
- Evolution and potential impacts of Bitcoin and blockchains on global businesses
Table of Contents
- Part 0 Introduction 12
- Some Definitions 13
- Part 1 Money 20
- Physical and Digital Money 21
- How Do We Define Money? 24
- A Brief History of Money-Dispelling the Myths 38
- Forms of Money 38
- Money Through the Ages 43
- Gold Standards 63
- Fiat Currency and Intrinsic Value 68
- Currency Pegs 72
- Quantitative Easing 76
- Summary 79
- Part 2 Digital Money 82
- How Are Interbank Payments Made? 83
- Same Bank 86
- Different Banks 88
- Correspondent Bank Accounts 90
- Central Bank Accounts 94
- International Payments 101
- E-Money Wallets 115
- Part 3 Cryptography 120
- Cryptography 121
- Encryption and Decryption 121
- Hashes 136
- Digital Signatures 140
- Why Alice and Bob? 146
- Part 4 Cryptocurrencies 148
- Bitcoin 149
- What Are Bitcoins? 150
- What Is the Point of Bitcoin? 151
- How Does Bitcoin Work? 153
- Bitcoin’s Ecosystem 194
- Bitcoin in Practice 194
- Bitcoin’s Predecessors 201
- Bitcoin’s Early History 207
- Bitcoin’s Price 224
- Storing Bitcoins 229
- Software Wallets 230
- Hardware Wallets 236
- Buying and Selling Bitcoins 240
- Exchanges 240
- Over the Counter (OTC) Brokers 247
- Localbitcoins 248
- Who is Satoshi Nakamoto? 249
- Ethereum 254
- What is Ethereum? 254
- How Is Ethereum Similar to Bitcoin? 257
- Smart Contracts 275
- Ethereum’s History 278
- Actors in the Ethereum Ecosystem 286
- Ether Price 290
- Forks 291
- A Fork of a Codebase 291
- A Fork of a Live Blockchain: Chainsplits 292
- What’s the Result of a Deliberate, Successful Fork? 294
- How Does a Deliberate Chainsplit Work? 295
- Media Descriptions 296
- Hard Forks vs Soft Forks 296
- Case Study 1: Bitcoin Cash 297
- Case Study 2: Ethereum Classic 297
- Other Forks 298
- Part 5 Digital Tokens 300
- What Are Digital Tokens? 301
- Native Blockchain Tokens 306
- Asset Backed Tokens 309
- Depository Receipt Tokens 310
- Title Tokens 310
- How Do Asset Backed Digital Tokens Work? 311
- Contract Tokens 314
- Utility Tokens 314
- Transactions 315
- Tracking of Physical Objects 315
- Notable Cryptocurrencies and Tokens 319
- Part 6 Blockchain Technology 324
- What Is Blockchain Technology? 325
- What Is Common to Blockchain Technologies? 331
- What Are Blockchains Good For? 334
- Public Blockchains 334
- Speculation 334
- Darknet Markets 335
- Cross Border Payments 337
- Initial Coin Offerings (ICOs) 338
- Other 338
- Private Blockchains 339
- Notable Private Blockchains 343
- Blockchain Experiments 346
- Questions to Ask 349
- Part 7 Initial Coin Offerings 352
- What Are ICOs? 353
- How Do ICOs work? 355
- Whitepapers 355
- The Token Sale 357
- ICO Funding Stages 359
- Whitelisting 361
- Funding Caps 362
- Treasury 362
- Exchange listing 363
- When Is a Token a Security? 365
- Conclusion 369
- Part 8 Investing 372
- Pricing 373
- Who Controls the Price of Utility Tokens? 379
- Risks and Mitigations 381
- Market Risk 382
- Liquidity Risk 382
- Exchange Risks 382
- Wallet Risks 386
- Regulatory Risks 387
- Scams 388
- Part 9 Conclusion 390
- Conclusion 391
- The Future 392
