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@ -61,7 +61,7 @@ Satoshi Nakamoto withdrew from the public in April 2011, leaving the responsibil
[[user-stories]]
=== Bitcoin Uses, Users, and Their Stories
((("getting started", "bitcoin uses and users", id="GSuses01")))Bitcoin is an innovation in the ancient technology of money. At its core, money simply facilitates the exchange of value between people. Therefore, in order to fully understand bitcoin and its uses, we'll examine it from the perspective of people using it. Each of the people and their stories, as listed here, illustrates one or more specific use cases. We'll be seeing them throughout the book:
((("getting started", "bitcoin uses and users", id="GSuses01")))((("bitcoin", "getting started", id="BCbasic01")))Bitcoin is an innovation in the ancient technology of money. At its core, money simply facilitates the exchange of value between people. Therefore, in order to fully understand bitcoin and its uses, we'll examine it from the perspective of people using it. Each of the people and their stories, as listed here, illustrates one or more specific use cases. We'll be seeing them throughout the book:
North American low-value retail::
Alice lives in Northern California's Bay Area. She has heard about bitcoin from her techie friends and wants to start using it. We will follow her story as she learns about bitcoin, acquires some, and then spends some of her bitcoin to buy a cup of coffee at Bob's Cafe in Palo Alto. This story will introduce us to the software, the exchanges, and basic transactions from the perspective of a retail consumer.
@ -88,7 +88,7 @@ Each of these stories is based on real people and real industries that are curre
=== Getting Started
((("getting started", "bitcoin wallet selection", id="GSwallet01")))((("wallets", "selecting", id="Wselect01")))Bitcoin is a protocol that can be accessed using a client application that speaks the protocol. A "bitcoin wallet" is the most common user interface to the bitcoin system, just like a web browser is the most common user interface for the HTTP protocol. There are many implementations and brands of bitcoin wallets, just like there are many brands of web browsers (e.g., Chrome, Safari, Firefox, and Internet Explorer). And just like we all have our favorite browsers (Mozilla Firefox, Yay!) and our villains (Internet Explorer, Yuck!), bitcoin wallets vary in quality, performance, security, privacy, and reliability. There is also a reference implementation of the bitcoin protocol that includes a wallet, known as the "Satoshi Client" or "Bitcoin Core," which is derived from the original implementation written by Satoshi Nakamoto.
((("getting started", "wallet selection", id="GSwallet01")))((("wallets", "selecting", id="Wselect01")))Bitcoin is a protocol that can be accessed using a client application that speaks the protocol. A "bitcoin wallet" is the most common user interface to the bitcoin system, just like a web browser is the most common user interface for the HTTP protocol. There are many implementations and brands of bitcoin wallets, just like there are many brands of web browsers (e.g., Chrome, Safari, Firefox, and Internet Explorer). And just like we all have our favorite browsers (Mozilla Firefox, Yay!) and our villains (Internet Explorer, Yuck!), bitcoin wallets vary in quality, performance, security, privacy, and reliability. There is also a reference implementation of the bitcoin protocol that includes a wallet, known as the "Satoshi Client" or "Bitcoin Core," which is derived from the original implementation written by Satoshi Nakamoto.
==== Choosing a Bitcoin Wallet
@ -142,7 +142,7 @@ Alice is now ready to start using her new bitcoin wallet.((("", startref="GSquic
[[getting_first_bitcoin]]
==== Getting Your First Bitcoin
((("getting started", "bitcoin acquisition")))The first and often most difficult task for new users is to acquire some bitcoin. Unlike other foreign currencies, you cannot buy bitcoin at a bank or foreign exchange kiosk, yet.
((("getting started", "acquiring bitcoin")))The first and often most difficult task for new users is to acquire some bitcoin. Unlike other foreign currencies, you cannot buy bitcoin at a bank or foreign exchange kiosk, yet.
Bitcoin transactions are irreversible. Most electronic payment networks such as credit cards, debit cards, PayPal, and bank account transfers are reversible. For someone selling bitcoin, this difference introduces a very high risk that the buyer will reverse the electronic payment after they have received bitcoin, in effect defrauding the seller. To mitigate this risk, companies accepting traditional electronic payments in return for bitcoin usually require buyers undergo identity verification and credit-worthiness checks, which may take several days or weeks. As a new user, this means you cannot buy bitcoin instantly with a credit card. With a bit of patience and creative thinking, however, you won't need to.
@ -156,7 +156,7 @@ Here are some methods for getting bitcoin as a new user:
[TIP]
====
((("privacy, maintaining")))((("security", "maintaining privacy")))((("getting started", "bitcoin benefits")))((("digital currencies", "currency exchanges")))((("currency exchanges")))One of the advantages of bitcoin over other payment systems is that, when used correctly, it affords users much more privacy. Acquiring, holding, and spending bitcoin does not require you to divulge sensitive and personally identifiable information to third-parties. However, where bitcoin touches traditional systems, such as currency exchanges, national and international regulations often apply. In order to exchange bitcoin for your national currency, you will often be required to provide proof of identity and banking information. Users should be aware that once a bitcoin address is attached to an identity, all associated bitcoin transactions are also easy to identify and track. This is one reason many users choose to maintain dedicated exchange accounts unlinked to their wallets.
((("privacy, maintaining")))((("security", "maintaining privacy")))((("getting started", "benefits of bitcoin")))((("digital currencies", "currency exchanges")))((("currency exchanges")))One of the advantages of bitcoin over other payment systems is that, when used correctly, it affords users much more privacy. Acquiring, holding, and spending bitcoin does not require you to divulge sensitive and personally identifiable information to third-parties. However, where bitcoin touches traditional systems, such as currency exchanges, national and international regulations often apply. In order to exchange bitcoin for your national currency, you will often be required to provide proof of identity and banking information. Users should be aware that once a bitcoin address is attached to an identity, all associated bitcoin transactions are also easy to identify and track. This is one reason many users choose to maintain dedicated exchange accounts unlinked to their wallets.
====
Alice was introduced to bitcoin by a friend so she has an easy way to acquire her first bitcoin. Next, we will look at how she buys bitcoin from her friend Joe and how Joe sends the bitcoin to her wallet.