I decided to dedicate this space to the preparation of my book “Everything I Know About Bitcoin.” I have been working on it for quite some time, and I chose to share it online and completely free of charge, so that truly anyone interested in Bitcoin can access it. My goal is to contribute to raising awareness about Bitcoin and its significance – without barriers and without restrictions.
If you have ideas, questions, or feedback, I would be very grateful – it will help me shape the book into something as useful as possible for a wide audience.
If you like the project and would like to support its creation, you can also do so with a voluntary contribution in Bitcoin at this address:
: bc1qj2x7c6vpsjvyw83fwjx07v0wcx5xf0774sfkvg
Bitcoin Mining
Bitcoin Mining Why would anyone “invest” an enormous amount of money into Bitcoin (by paying for electricity) – seemingly for nothing, for no reason at all? In reality, miners do not do this for free, but for profit. Approximately every 10 minutes, a competition takes place to find the correct number, and the reward for winning this competition is newly created Bitcoin. At the very beginning, there were no bitcoins at all. So how did they enter circulation? Through mining. Behind the scenes of the Bitcoin network, there is an algorithm that distributes new bitcoins. These bitcoins ..
Evolution of Bitcoin Mining
Evolution of Bitcoin Mining I have mentioned several times that approximately every 10 minutes a new block is mined, which adds new bitcoins to the system. But how do we know that it will take miners exactly 10 minutes to find the “winning” number? In reality, we do not know this precisely. From laptops to ASIC miners When Bitcoin was first created, it was mined using ordinary laptops and desktop computers. However, people soon realized that the faster they could search for the correct number, the higher their chances of winning. This led to the idea of mining Bitcoin using grap..
Bitcoin full nodes
Bitcoin Full Nodes Let’s briefly return to the chapter on Proof of Work. There, I tried to explain how miners search for a hashed number, while verifying the result itself is trivial. So who verifies it? It is the owners of full nodes – the backbone of the Bitcoin network. What is a Bitcoin full node? A Bitcoin full node is software that runs on a computer and allows its owner to download, verify, and store the entire history of the Bitcoin blockchain. These nodes independently verify all transactions and blocks, ensuring that the network operates correctly and according to pred..
Bitcoin Wallets and Security
Bitcoin Wallets and Security Imagine that you own gold. You need to store it somewhere safely so that no one can steal it from you. You can hide it under a mattress, bury it in the garden, or rent a safety deposit box in a bank. Bitcoin works in a similar way, but with one major difference – it is not physical. Nevertheless, you still need a place where your bitcoins will be stored securely. That place is a Bitcoin wallet. A Bitcoin wallet does not store bitcoins themselves, because they exist only within the blockchain. The wallet contains private keys that allow you to access your b..
Seed
Seed Phrase In the early stages of Bitcoin’s creation, users had to work directly with private keys, which was complicated, impractical, and above all dangerous. Each private key was a long string of random characters that needed to be stored securely. If you lost your private key, your Bitcoins were irreversibly gone. This problem led to the need for a simpler solution. In 2013, an improvement was introduced on the Bitcoin network, which led to the implementation of so-called hierarchical deterministic wallets. This new system made it possible to generate an unlimited number..
From Transaction to Blockchain
From Transaction to Blockchain Blockchain, mining, proof of work, full node. I believe that for a new user this may be too much information. So let’s summarize it and track our transaction. What exactly happens after pressing the send button? Right after sending, your transaction spreads across the Bitcoin network. The transaction is sent to the first node in the network, which verifies it and then forwards it to other nodes. This process repeats until the entire Bitcoin network receives the information. At this moment, however, the transaction is still unconfirmed – it has not yet been ..
Bitcoin is available to everyone!
Bitcoin is available to everyone! One of the most common misconceptions is that you have to buy a whole Bitcoin. However, this is not true. Bitcoin is fully divisible, similar to the euro or the dollar. One Bitcoin consists of 100 million units called satoshi (sats). This means that anyone can buy just a small fraction of a Bitcoin – you don’t need to own a whole BTC. For example, if Bitcoin is worth 100,000 euros, you can buy around 1,000 sats for just one euro. At the time of writing this book, 1 satoshi is worth less than 0.1 cent. This makes Bitcoin accessible to anyone who wants to ..
The Price of Bitcoin
The Price of Bitcoin Let’s first answer a basic question: what determines the price of Bitcoin? The answer is simple – it is the intersection of supply and demand on exchanges. Exchanges do not directly set the price of Bitcoin – the price is formed based on supply and demand. Let’s explain it with a simple example. Imagine that there are only five people on an exchange. After reading a great book about Bitcoin, I decide to invest in it. I want to buy Bitcoin worth 10,000 euros. When I come to the exchange, the current price of Bitcoin is 100,000 euros per 1 BTC. So my demand..
Three Important Properties of Bitcoin
Three Important Properties of Bitcoin Let’s summarize the three most important properties of Bitcoin – the qualities that make it different from traditional money. Limited Supply First of all, Bitcoin has a strictly limited supply. There will never be more than 21 million bitcoins. This means that unlike fiat currencies, which can be printed by central banks as needed, Bitcoin is predictable and cannot be artificially “inflated”. Although the total amount of Bitcoin is fixed, new bitcoins are still being mined. This means Bitcoin is technically inflationary – but unlike traditional..