Bitcoin Explained in Cartoons

For Adults Who Think Like Kids and Kids Who Will Be Smarter Than Adults

Acknowledgements

Thanks to all the amazing people who helped me really understand this amazing concept:
Satoshi Nakamoto (Alias)
Wences Cesares
Caitlin Long
Anthony Pompliano
Trace Mayer
Andreas Antonopoulos
Saifedean Ammous
Tone Vays
Max Keiser
Jimmy Song
Murad Mahmudov
Francis Pouliot
Stephan Livera
Vijay Boyapati
Nassim Nicholas Taleb
Tyler Winklevoss
Cameron Winklevoss
Pierre Rochard
Barry Silbert
… and many more.

Bitcoin Explained in Cartoons by David Michael Ledesma
MBAbullCoin.com
© 2019 David Michael Ledesma
All rights reserved. No portion of this book may be reproduced in any form without permission from the publisher, except as permitted by U.S. copyright law.
For permissions contact: Support@MBAbull.com
Cover Design by Samuel Abiodun Solomon
Layout Design by Samuel Abiodun Solomon
Design Based on Animation by Antun Milošević
Images and Vector Graphics Primarily from Pixabay

Disclaimer, Terms and Conditions

Although the author and publisher have made every effort to ensure that the information in this book was correct at press time, the author and publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause.
Images for this book were sourced from online image and vector banks which allow images to be used for commercial purposes. If you see any image copyright violation, you agree to not hold the author and/or publisher responsible, but to instead inform the author and publisher at support@MBAbull.com so that they may further look into the issue the soonest.
If you do not accept the aforementioned condition(s), you must stop reading from this point onward.
If any of the conditions above are found to be unenforceable, you agree that the maximum liability for the author and/or publisher shall be US$100.

Note from the Author

This NOT an endorsement to buy (or not buy) Bitcoin.
In this book for beginners, I explain the very basic concept or rationale of Bitcoin, in the same way a professor in class may explain the rationale of communism, democracy, capitalism, socialism, banking or any other concept for the day without necessarily intending to promote it.
As a supplement to this book, I also offer my FREE downloadable "Bitcoin Cheat Sheet" on my website (you can straight to MBAbullCoin to download it now if you wish, no registration needed) which includes my opinion on what might be the risks or weaknesses of Bitcoin, as well as how to get started in Bitcoin (only if you so choose to).

“What every Bitcoiner should give to a non-Bitcoiner”
(Not necessarily to promote, but it’s always good to understand
each other’s viewpoint…)
The Bitcoin concept may be hard to understand when
reading just plain words… these lively cartoons are here to
make it easier!

Forget about confusing words like

Bitcoin
blockchain
BLA BLA

and others…

Let’s first look at the

super
simplified
history

of
“money”

Long ago…

there was

NO money.

I might exchange my milk for

your cheese.

But

what if I have
one big cow
and I want just your
three chicken eggs?

I would not give you my whole cow…

I might give you
three seashells
to represent that I got
three eggs
from you every day.

After I gave you 1,000 sea shells, you could exchange them for my whole cow.

Do the sea shells have value?
YES.

Because 2 or more people have ACCEPTED and AGREED that they have value, and they CAN BE TRANSFERRED to other people.

When more and more people accept and agree to use these sea shells, the more valuable they become.

One problem…

there’s an
UNLIMITED SUPPLY of seashells and you could easily CHEAT by getting more at the beach.

For the sea shells to have good value,
there needs to be a

LIMITED SUPPLY
for us to use them as
money.

So we stopped using sea shells and started using rare metals like GOLD and silver…

Gold has value because it has a limited supply and some people say that all the gold stored in the world can fit into one big swimming pool.

Gold also has value because it is accepted and agreed by many people to be valuable.

A common belief is that

“Gold has high value because it conducts electricity and is used for making products like phones.” A common belief is that “Gold has high value because it conducts electricity and is used for making products like phones.”

That’s part of the reason, but gold was valuable long before electricity, computers, and phones.
Silver and oil have much more uses than
gold…

so why is 1 ounce of silver or oil valued less than 1 ounce of gold?

One of the main reasons is that gold supply is more limited than oil and silver.

So after using gold and silver
as money…

Kingdoms and empires used gold and silver COINS with images of the king or emperor (but still, the value came from the gold/silver, not the government).

In the past, the US dollar represented an amount of gold that you could withdraw from a bank…

While the British pound represented 1 pound of silver in England.

The value of money STILL came from gold and silver, and not from the government “commanding” people to use government money.

Even TODAY,
you can see some governments stocking up on more gold to guarantee the value of their money.

Despite this, the value of government money keeps going down… as can be seen by prices going up every year.

Prices of Products Go Up Every Year

Money Value Goes DOWN!

Why?
For leaders to stay in power, a government must give MORE AND MORE FREE STUFF

to its citizens or its military…
or else they will lose their position in an election,
revolution or coup d’etat.

How does the government pay for these INCREASING promises of free stuff?

One is through taxes, but this is NEVER enough.

The government also borrows money… But taxes are NOT enough to pay for these borrowings and interest.

So the government just prints more money for the same amount of gold in the central bank’s vault.

In some cases, the government might not even keep any gold at all… in which case the money might simply represent all the products in that country.

When more money is printed for the same amount of products, what happens?
Look at this apple whose value is $1:

When more money is printed, the same apple becomes $2 instead of $1… Same as saying the value of money goes DOWN.

So the solution would be for us to just keep gold, right?

Well… Maybe yes
and maybe no,
depending on who you ask.

Gold is not completely limited…there’s more gold found every day in unpredictable amounts.

Gold is very difficult to transfer from person to person, or from country to country...
...not good for the digital world of today.

Although gold certificates can be transferred online, the certificates still have to represent real physical gold in a vault in some country.

A government can get gold from all the vaults located on its land and replace it with paper currency… even if the gold owner does not agree; just like the American government did in 1933.

A possible solution might be Bitcoin!

Bitcoin is a WORLDWIDE digital money which is NOT controlled or centralized by any government, bank, location, or corporation.

It has a strict limited supply as there will only ever be 21 million Bitcoins forever and ever…
It can easily be transferred digitally around the world with reasonable speed.
It is unstoppable by governments, banks, or corporations even if the internet is cut off.

(Reminder: Governments can control banks & corporations using laws.)

Instead of transfer using banks, it’s done using a “blockchain” which is NOT centralized.

Blockchain is technical to explain, so let’s just imagine it’s millions of independent citizens and their computers around the world working together and checking each other to honestly record transactions between you and me… these independent citizens also earn Bitcoin for this service.

Bitcoin

is NOT a physical coin.

It is digital like email, which you cannot touch and hold.

It can be divided, subdivided, transferred, bought, or sold in decimals.

Finally, do you want to learn more about Bitcoin in a non-technical way?
Download my FREE cheat-sheet at MBAbullCoin

Your FREE CHEAT-SHEET
and PowerPoint Slides at MBAbullCoin are
waiting for you!

The cheat-sheet gives my best answer to questions like:

Will one Bitcoin be worth $1 MILLION in the future like some of the hype says?

Will Bitcoin price go to ZERO like some critics say?

Is Bitcoin only for criminals?

What are the RISKS vs. rewards of investing in Bitcoin?

How to buy Bitcoin or even earn it for FREE?

What’s the difference between Bitcoin and other cryptocurrencies?

How many people in the world “accept and agree” that Bitcoin is valuable?

Also slightly more technical questions like:

What is Bitcoin “mining?”

What is the Bitcoin supply “halving” or “halvening?”

And much more!

Also for Download:

A FREE PowerPoint presentation “Bitcoin Explained” as a supplement to this book, in case you wish to use it for your own speeches, lectures, class reports, conferences, meetups, etc!

Get your stuff NOW at MBAbullCoin!

What did you think of my book?

Hi there!
While this book is not meant to convince you to buy (or not buy) Bitcoin, I really do hope that the concept has become much clearer to you by now. If you found the way I presented it as helpful, I would wholeheartedly appreciate you writing even just a 1-sentence (yup, that’s just a ONE sentence) review. (A longer review is most welcome of course, but I’m happy if you could spare 1 minute right now to write even one sentence.)
I guarantee I’ll personally read your review and that you’re not “just a number” among my readers.

Tweet me the website link to your online review!

@MBAbullCoin

I promise I’ll make an effort to try to reply to you!

David

About the Author

David Michael Ledesma is an online entrepreneur and social media marketer who has authored two bestsellers related to digital marketing and “netrepreneurship.” He started with nothing more than a laptop and internet connection before soon setting up the world-famous business tutorial Youtube channel and website MBAbull.com which provides educational help to the MBA student niche.
To date, his following has since grown to more than 100,000 subscribers and 14 million video views from across the globe. Unlike other digital startups, his business was “cash flow positive” since the 6th month of operation, and he is now active in the startup scene both internationally and in his local community where he has given talks and collaborated with “startupreneur” and digital marketing organizations such as the Google Business Group.
Since his online business takes up very little of his time, David lives in sunny Southeast Asia where he sometimes teaches at university. Follow him on Twitter @MBAbullCoin.

@MBAbullCoin

References

Antonopoulos, A. M. (@aantonop). (2017). Bitcoin for Beginners [Video file]. Retrieved from https://www.youtube.com/watch?v=UlKZ83REIkA
Bitcoin Austria. (2018). Saifedean Ammous: The Bitcoin Standard - book presentation in Vienna, Austria [Video file]. Retrieved from https://www.youtube.com/watch?v=Zbm772vF-5M
Chicago Ideas. (2015). Wences Cesares—Bitcoin: The New Gold Standard [Video file]. Retrieved from https://www.youtube.com/watch?v=yPIvqJsCOSo
Desjardins, J. (2015, September 22). 12 Stunning Visualizations of Gold Shows Its Rarity [Web page]. Retrieved from Visual Capitalist website: https://www.visualcapitalist.com/12-stunning-visualizations-of-gold-bars-show-its-rarity/
Keiser, M. (2019). Keiser Report [Web page]. Retrieved from Keiser Report website: https://www.keiserreport.com
Livera, S. (2019). [Web page]. Retrieved from Stephan Livera website: https://stephanlivera.com/
Long, C. (2019). [Web page]. Retrieved from Caitlin Long website: https://caitlin-long.com/
Mahmudov, M. (@MustStopMurad). (2017, March). [Twitter account]. Retrieved from Twitter website: https://twitter.com/MustStopMurad
Mayer, T. (2019). The Bitcoin Knowledge Podcast [Web page]. Retrieved from The Bitcoin Knowledge Podcast website: https://www.bitcoin.kn/
Nakamoto, S. (2018). Bitcoin: A Peer-to-Peer Electronic Cash System. Bitcoin. Retrieved from https://bitcoin.org/en/bitcoin-paper
Simply Explained - Savjee. (2017). How does a blockchain work—Simply Explained [Video file]. Retrieved from https://www.youtube.com/watch?v=SSo_EIwHSd4