These milestones show that there is much going on. The overview below shows how bitcoin stands apart from two mainstream asset classes: gold and fiat (Fig.1). Bitcoin is steadily carving out it’s role as a significant player in the DeFi (decentralized finance) ecosystem and related projects have already secured a value of about US$ 1.07 billion by September 2024. This evolution signals a shift in the financial landscape, highlighting the growing importance of understanding Bitcoin and its applications.

Why? It might be that this will have a possible impact on our job, our investments and our financial life. Having a better understanding may open up new opportunities and help us with better decision making. Before getting into advanced topics, getting insights from a bitcoin educator and business owner is a great way to familiarize ourselves with the basics.

Fig 1: Using traits of money to compare bitcoin, gold and fiat money. https://news.bitcoin.com/bitcoins-role-in-defi-evolves-cmc-research-and-footprint-analytics-report/

To get more insights on the topic, I reached out to Dušan Matuška. Dušan is the co-founder of AmityAge, a bitcoin education and mining company. He shared his experience and tips on getting started with bitcoin.

“They got to you as well with this scam?”

In 2017, 2 years after Dušan first learned about bitcoin, a friend brought up the topic. “Oh my God, Peter, they got you as well to this scam”, was his initial reaction. His friend kept on explaining and shared about banking the unbanked with bitcoin. He was so inspired that he immediately took some days off to study bitcoin. A couple of months later he gave his first bitcoin presentation and also did free consultations. He didn’t have all the answers but researched and replied to the people. This jump started his bitcoin journey. Combining his background in teaching and his newfound knowledge it made sense to be a Bitcoin educator.

After my first purchase I was like: “I’m just done with this bitcoin thing”. Luckily I didn’t stick to that idea.

For his first transaction, Dušan bought about 200 EUR worth of bitcoin and ended up losing 150 EUR to transaction fees. There was a button mentioning to use the remaining funds as a mining fee, it was not the smartest thing to do.

This mistake discouraged him and for a while he was done with bitcoin again. Eventually he changed his mind.

He suggests treating bitcoin as a form of savings rather than a speculative investment for short term profit. Much like money, it’s good to allocate wisely; some for long-term holding and some for daily needs. As his entire salary is in bitcoin he has learned to manage it responsibly. Dušan believes in encouraging others to view bitcoin as a long-term savings option. Holding it for 10, 20 years or more can provide security for the future, using it only when truly necessary. This mindset can help people better understand and utilize bitcoin’s potential.

Things to consider when purchasing your first amount of bitcoin

It's true that using centralized exchanges often requires sharing personal information, which could pose risks if the platform is compromised. Though some centralized exchanges offer extremely low fees. Exploring decentralized exchanges or peer-to-peer transactions as alternatives are a way to protect your privacy. Tools like Bisq Network, Vexl, or even bitcoin ATMs provide great options for avoiding KYC requirements. It's important for everyone to weigh the trade-offs between convenience and privacy when it comes to crypto transactions.

Benefits of using the Lightning Network

The Lightning Network is a fascinating solution to bitcoin's scalability issues. By acting as a second layer, it enables faster and cheaper transactions compared to on-chain bitcoin transactions, which are limited to about seven per second. With Lightning, transactions are settled instantly and are irreversible, functioning like digital cash. The concept is similar to opening a bar tab; multiple transactions occur within the tab without settling each one individually until the tab is closed. This reduces fees and increases efficiency.

Furthermore, the Lightning Network can theoretically scale to hundreds of thousands of transactions per second, limited only by internet speed. However, it does come with trade-offs, such as potential scaling challenges and technical complexities. Despite this, it's a groundbreaking system that enhances bitcoin's usability for everyday transactions while maintaining decentralization.

The Lightning Network brings a win-win for both customers and merchants. Customers enjoy low fees and super-fast transactions, while merchants benefit from instant settlements, ensuring they get their money without the risk of chargebacks or fraud. It's a game-changer compared to traditional card payments.

Everyone's journey is different, so take your time to learn and choose what works best for you.

Getting started with bitcoin can feel overwhelming, but it's simpler than it seems. Dušan recommends setting up a lightning wallet first. It's an easy way to get familiar with Bitcoin. To make it fun, you can receive a small amount, like 2 to 5 euros, to see how it works in real-time. Once you're intrigued, explore resources tailored to your preferences. If you enjoy reading, books like Inventing Bitcoin, The Bullish Case for Bitcoin, or The Little Bitcoin Book are excellent starting points. For courses, platforms like, Mi Primer Bitcoin, Plan B Network or Looking Glass are great options.

When you're ready to buy bitcoin, consider your priorities. If convenience is key and privacy isn’t a concern, platforms like Coinbase are user-friendly. However, if privacy matters, consider bitcoin ATMs or decentralized exchanges like Bisq or Vexl. Everyone's journey is different, so take your time to learn and choose what works best for you.

Educating the World About Bitcoin through AmityAge

Together with Gabriel, Dušan is the co-founder of AmityAge. Their company has a mission to welcome 100 million people into the world of bitcoin. The primary focus is education, targeting both individuals and educators. By training educators at their Bitcoin Educators Academy to teach effectively, AmityAge aims to expand bitcoin knowledge and adoption globally. The company funds its initiatives through bitcoin mining, with mining operations currently in Paraguay and Ethiopia.

The name "AmityAge" reflects the company's vision. Gabriel and Dušan were inspired by the word "amity," which means harmony, peace, friendship, and fellowship. They view bitcoin as a tool to foster freedom, cooperation, and a more peaceful world. By adopting a bitcoin standard, they believe societies can reduce reliance on war-financed economies and promote efficient collaboration.

Their logo features "Amity Nakamoto," a symbolic character imagined as the granddaughter of bitcoin’s creator, Satoshi Nakamoto. Amity serves as a guide, spreading knowledge about Bitcoin and inspiring others to explore its potential.

The mining system forms the backbone of bitcoin’s revolutionary model

Bitcoin mining is the process of validating and ordering transactions within the decentralized bitcoin network. Since there’s no central authority managing these transactions, miners compete every 10 minutes to win the privilege of organizing transactions into a block and adding it to the blockchain.

This process is much like a digital lottery, where miners use computational power and energy to solve mathematical problems. The winner secures the network by verifying transactions and also earns bitcoin rewards as an incentive for their participation.

As more miners join, the network adjusts the difficulty to maintain a consistent 10-minute block creation time. The whole process keeps the network secure and ensures new bitcoins are released at a steady pace. The final part of bitcoin is expected to be mined in 2140.

This transparent and decentralized monetary system is in contrast with traditional banking, where monetary policies can change unpredictably. Miners are basically the security team for one of the most secure databases in the world, all while earning some bitcoin for their efforts. This dynamic system balances incentives, security, and transparency. It forms the backbone of bitcoin’s revolutionary financial model.

Dušan’s golden tip: learning about the history of money will make you appreciate bitcoin.

Understanding bitcoin starts with understanding the history of money. The more you explore how money has evolved and the challenges it has faced throughout history, the more you’ll appreciate why bitcoin exists. Stories from places like Cyprus, where bank accounts were frozen, and financial crises hit hard, highlight the need for an alternative like bitcoin.

If you're new to bitcoin, start by learning its purpose and the problems it aims to solve. Once you understand its benefits, you can dive deeper into the technical aspects, such as privacy features or using different wallets. The foundation is understanding why bitcoin matters in the first place. A good book suggestion on the topic is Layered Money by Nik Bhatia.

Visit www.amityage.com to learn more about the impact Dušan and his business partner Gabriel are making.

Important note:

This article is strictly educational and for general information purposes. Consult a professional for financial advice tailored to your situation.

All Eyes on Bitcoin: A Beginners Guide to Getting Started with Bitcoin (part 2)