Kind of a long crash course at 72 minutes.
Oddly titled video, it isn’t really about working with Bitcoins, it’s more about the economic, risk, and political issues surrounding crypto-currencies. Great video, +1.
It’s a long video, but a great introduction to the non-technical issues
and factors concerning Bitcoin. An hour of my time that I felt was well
Early in the video, he mentions that Bitcoins can’t be seized, which is of course what happened with Silk Road. The FBI seized all of the Bitcoins being held by Silk Road and they’re just going to exchange them for cash and keep the cash. A similar thing happens every time an exchange gets hacked and users lose their Bitcoins.
My question that I’ve always had about Bitcoins and wasn’t answered in this video is: why do users keep Bitcoins in central locations like Silk Road or exchanges? I thought the whole process was supposed to be that an exchange takes your US dollars or Euros or whatever and gives you Bitcoins in return, which you then store in your wallet which is a file on your computer or printed out on paper like the guy in this video does.
I think people are just lazy. They’ll usually route their coins through multiple exchanges / parties as to make the coins harder to track. I’m just assuming they do this with a set amount of coins that they expect to spend. If they have some left over they probably keep it on the server until they want to spend it some other time. As to why they just don’t transfer it back to their wallet which everyone stores offline on an encrypted disk (right?)…. I don’t know.