Lesson 1: What problem does Bitcoin solve?

Goal: understand Bitcoin as a system for value transfer + monetary rules without needing permission from a central authority.

Beginner

Bitcoin lets you send money to someone else online without a bank deciding whether it’s allowed. It also has a predictable supply, so new coins can’t be created on a whim.

Intermediate

In normal finance, you trust institutions to keep honest records and follow rules. Bitcoin replaces “trust the institution” with “verify the rules.” A network of nodes checks every block and transaction.

Expert lens

Bitcoin’s core invention is not “a blockchain.” It’s a way to coordinate a shared ledger in adversarial conditions using proof-of-work, where rule enforcement happens at the edge (nodes) rather than by decree.

Key mental model: Bitcoin is a ruleset + a verification network + an incentive system.
If you can verify the rules yourself, you can refuse invalid money. That’s the political/economic punchline.