What is Bitcoin? Explained in 8 minutes

Introduction to Crypto

Mark Cuban explains crypto to John Stewart, a beginner.

• Crypto is compared to gold, a store of value.
• Gold's value comes from its scarcity and the cost of obtaining it.
• Bitcoin has similar traits, but it's digital and limited to 21 million units.

Bitcoin

• Bitcoin is like digital gold, with its value based on supply and demand.
• There are currently about 19.8 million Bitcoins in existence.
• The price of Bitcoin is determined by the number of people buying versus selling.

Ethereum and Smart Contracts

• Ethereum is another type of crypto that uses blockchain and smart contracts.
• Smart contracts are automatic contracts that can trigger activities based on other activities.
• They eliminate the need for middlemen and can be used for various applications, such as creating NFTs (non-fungible tokens).

Use Cases for Crypto

• Crypto can be used for international transactions, making it faster and cheaper than traditional methods.
• It can also be used for creating digital versions of products, such as textbooks, and paying royalties automatically.
• This technology has the potential to revolutionize industries like music publishing and intellectual property rights.

Current State of Crypto

• Crypto has not yet had its "Instagram moment," a point at which it becomes widely adopted and understood by the general public.
• Despite this, crypto still has the potential for ultimate utility and is an area of ongoing development and hope.