Learn how to buy your first bitcoin. This course aims to demystify bitcoin and give you the tools to buy and use bitcoin confidently.

1. Buy Your First Bitcoin:
Beginner’s Bitcoin Course
Portia Burton
The Blockchain Explainer
9/17/2017

2. A Little Bit About Myself
● I’ve been in the bitcoin space for
over a year
● Software developer
● Former educator

3. Introduction: Who are You and Why are You Here?

4. What We Will Cover
1. Why this webinar
2. History of bitcoin
3. What exactly is bitcoin
4. What is bitcoin used for
5. Bitcoin use cases
6. Bitcoin wallets

5. Why This Webinar?

6. Tech and Finance Has Dominated the Conversation

7. This is Problematic!!!

8. Use cases of bitcoin can be found in:
Real Estate
Finance
Education
Entertainment
Publishing
Nonprofits

9. Important for All Professionals to Understand Bitcoin

10. History of Bitcoin

11. Bitcoin is Not the First Cryptocurrency
Digicash: Created by David Chaum in 1990. First type of money that allowed
people to make anonymous transactions. The company went bankrupt in 1998
before gaining sustainable traction
Bitgold: Created in the late 90’s by Nick Szabo. Used “Proof of Work” algorithm
that was similar to the one being implemented by bitcoin today

12. Once Upon a Time in 2008...

14. 2008 Financial Crisis
● Banks were selling opaque financial products of questionable value (partially
thanks to the 1999 Glass-Steagal Act Repeal)
● Credit agencies were not properly assessing the risk of mortgage back
securities

15. Government’s Response

17. Meanwhile Satoshi Nakamoto created Bitcoin in
2009

18. What is bitcoin?
Type of Cryptocurrency
Peer-to-peer which means transactions
happen without a third party. Alice can send
money directly to Bob
Trustless, distributed ledger

19. Cryptocurrency
Virtual currency that uses cryptography, which makes the transmission of
currency secure and less vulnerable to attacks

20. Peer-to-Peer

21. Current State of Affairs

22. Trustless Distributed Ledger

23. Recap: What Bitcoin Is Not
Centralized, there is not a person, bank, or committee which
controls the ledger.
There is not a limitless supply of bitcoin- bitcoin circulation is
capped at 21 million. Crisis be damn.
Opaque, anyone can access the bitcoin ledger
Recommended Viewing: How the Economic Machine Works

24. What are the Key Components of Bitcoin

25. Bitcoin Transaction

26. Bitcoin Ledger

27. Bitcoin’s Role in Macroeconomics

28. Bitcoin’s Strengths
● Stateless, not owned by any government
● Faster than ACH bank transfers

29. Bitcoin in Venezuela
Currently plagued by inflation, which is set to hit
1,600 percent
Food shortages are extreme
However, electricity is free and many of the
population has “mined” bitcoin
Traveling agencies, and stores accept bitcoin

30. Bitcoin in Afghanistan
Fereshteh Forough, founder of Code to
Inspire, used bitcoin to pay her mostly
all-women staff. It was simply to difficult to
dangerous for her employees to cash their
checks in a bank.

31. Bitcoin Remittances
● Sending remittances is a 400 billion
dollar industry
● In Somalia and Haiti remittances make
up a quarter of the national income
● Transactions fees are on average 7.45%
● Services like Abra greatly reduce the
cost of sending money

32. Bitcoin and Personal Finance
* Warning, I’m not a financial expert

33. How the IRS Treats Bitcoin
Bitcoin is treated as property
Subjected to capital gains tax

34. Where does Bitcoin fit in?
● Use bitcoin for a store of value, as opposed to a currency I use to
make everyday purposes.
● Tend to keep my bitcoin, which in cryptocurrency community
parlance is called ‘HODL’
● Bitcoin grew by 500%

35. How to Get Your Hands on Some Bitcoin?

36. Things that You Need
Bitcoin wallet
Wallet address

37. Public and Private Keys
Each user has private and public keys
17pBY8kDsi9xLjRXRerAwxwxyKmHLB6oZi ???

38. There are Several Different Types of Wallets
“Hot” Wallet
Paper Wallet
“Cold Storage” Wallet
A wallet is where you keep receive, store and send bitcoin. It operates just like a regular wallet
you have in your purse or pocket

39. Hot Wallet

40. Paper Wallet
Go to bitcoin.com to generate keys: https://tools.bitcoin.com/paper-wallet/

41. Cold Storage Wallet

42. How to Buy Your First Bitcoin

44. Step 1: Let Coinbase know if you are an Individual or
Business

46. Step 2: Verification

48. Step 3: Bank Account Verification

51. Wait? Didn’t You Say Hot Wallets are Unsafe?

52. Yes, But...
● Coinbase and other hosted wallets allow you to purchase bitcoin using your
debit and credit card
● Easiest and fastest way to obtain bitcoin
● Coinbase refunds your bitcoin if your account is hacked

53. Transfer Your Bitcoin to Paper or Cold Storage
Wallet

54. More Classes

55. The Blockchain Explainer Newsletter

56. The Blockchain Explainer Videos

58. Resources
https://islam.stackexchange.com/questions/15010/is-trading-bitcoins-altcoins-halal
-or-haram-sunni-view
https://themerkle.com/top-4-cryptocurrency-projects-created-ahead-of-bitcoin/
https://medium.com/blockchannel/the-crypto-noobs-toolbox-b405fb0916b6
https://99bitcoins.com/how-this-refugee-is-using-bitcoin-to-change-lives-in-afghani
stan/
https://www.coinbase.com/charts
https://www.youtube.com/watch?v=67uW07QDHxE

59. https://support.coinbase.com/customer/portal/articles/1526452-where-can-i-find-th
e-private-keys-for-my-wallet-
https://www.youtube.com/watch?v=G4aAozKgnyM