Introduction

“Bitcoin is a decentralized peer-to-peer virtual currency…” That was the very first sentence I ever read about Bitcoin, and honestly, it was enough to make me lose interest in the topic for a long time.

This book does not aim to bring new, groundbreaking discoveries. I am not writing it for experts who study Bitcoin professionally. My intention was to put together everything I know about Bitcoin – summarizing knowledge gathered from several excellent books, podcasts, online articles, and various discussions. I tried to include the most essential insights (at least for me) in an effort to prevent Bitcoin from discouraging you the way it once discouraged me. The result is a text that should not overwhelm the reader with technical jargon, but instead help them understand why Bitcoin was created, how it works, and for whom it makes sense. I have done my best to keep the book as simple and clear as possible – it’s up to you to judge whether I succeeded.

The book is divided into three main parts, guiding you through the history of money, explaining the problems of the current financial system, and finally presenting Bitcoin as a solution. My goal is to make the topic of money and Bitcoin approachable without unnecessary technical jargon, while still providing enough depth for you to understand the importance of this revolutionary technology.

Part One – The History of Money and Its Problems

In the first part, we’ll look back at the past – how money came into existence and the journey it has taken over time. We’ll start with bartering, the very first method of trading goods, which quickly revealed its limitations. From there, we’ll see how humanity gradually moved to universal forms of payment such as salt, shells, precious metals, and later gold and silver coins.

We’ll understand why money only works when people trust it, and we’ll go through the properties every currency must have to function as an effective medium of exchange. We will also examine historical monetary collapses, which show that when governments and central banks gain control over money printing, sooner or later they tend to abuse this power.

We’ll explore recurring patterns that have led to hyperinflations, loss of trust in currencies, and the collapse of entire economies. History repeats itself, and humanity seems to make the same mistakes again and again.

This section will also cover the flaws of today’s financial system: how modern banking works, what today’s money is backed by, how central banks manipulate the economy, and what the consequences of endless money printing are for inflation and your savings.

Part Two – Bitcoin as a Solution

The second part of the book focuses on Bitcoin as a response to the failures of traditional money. I will try to explain as clearly as possible what Bitcoin is, what blockchain is, why Bitcoin was created, and why I believe the world needs it now more than ever.

We’ll start with the basics – how Bitcoin works, who created it, why it was designed the way it is, and what problems it aims to solve. We’ll take a look at the whitepaper published in 2008 by Bitcoin’s anonymous creator, Satoshi Nakamoto.

We’ll explain why Bitcoin is censorship-resistant, why it is decentralized, how blockchain works, what proof-of-work means, and how Bitcoin mining functions. You will see why Bitcoin is not just another internet currency but a genuinely new financial system that no one can arbitrarily manipulate.

We’ll also address the most common myths and misunderstandings surrounding Bitcoin – is it anonymous? Is it just a bubble? Is it only used by criminals? Will its problems be solved by other cryptocurrencies? We’ll attempt to answer these questions objectively and show why Bitcoin is fundamentally different from all other cryptocurrencies.

This part of the book is more “technical,” and I admit it may not always be easy to follow. But don’t worry – do you know exactly how electricity works? Or how the SMTP protocol that sends your emails functions? I don’t either, and yet we all use them every day.

Part Three – A Practical Guide to Bitcoin

The final part of the book is more practical. If the previous chapters have convinced you that Bitcoin is worth your attention, here you will learn how to actually get started.

We’ll cover the technical basics – how to buy Bitcoin, where to store it safely, how different types of wallets work, and why you should be careful with your private keys. We’ll go through how Bitcoin exchanges operate, how to send transactions, and explain some essential terms.

Beyond that, we’ll also explore advanced technologies such as the Lightning Network, which allows for instant and cheap Bitcoin transactions. We’ll explain community terms like “vexl,” ATH, HODL, and other popular expressions in the Bitcoin world.

This book is not just about theory. I want it to help you understand the history of money, see why Bitcoin was created, and learn how to actually use it.

I hope this book excites you as much as Bitcoin and everything related to it excites me. I believe it will help you gain at least some understanding of this technology and recognize the enormous potential it carries. Perhaps it will inspire you to dive deeper into Bitcoin or even open your eyes to how today’s financial system really works.