I'd probably talk about trust, but there's no correct answer here. My guess is that Bitcoin was created because its creator doesn't trust the government.
> My guess is that Bitcoin was created because its creator doesn't trust the government.
Also privacy in private markets, so not trusting VISA/Mastercard etc to sell my transaction data [1].
Plus the decentralized value [2], so not trusting the bankers/finance industry who have a large influence on the value of state currencies in addition to the government.
Well, I'm not sure about 7 year olds, but it's the first explanation of Bitcoin I've seen that I think my father may be able to understand. I'm going to link it to him.
The room full of piggy bank analogy is IMHO a lot more effective and accurate explanation that this video which barely brushes how Bitcoin works. (I too have been explaining Bitcoin to people since 2010 while being deeply familiar with its internals.)
Because it is hard to see from the camera how many coins are there in particular piggy bank, there are working small permoniks (aka miners) with funny caps.
Permonik randomly wanders the room and re-counts the coins in piggy banks. Always he erases an old number and writes his count on the piggy bank with marker.
The robot watches permoniks. He sees how fast they are and if they count well (their counting is equal the majority of other permoniks for given piggy bank). The lottery rewards fast and honest permoniks with higher odds of win.
There is one more thing. When doing transaction, you may leave a small number of coins (aka the fee) under the piggy bank. This is a reward for permonik as he visits the piggy bank for recounting.
Each permonik has a master and all his revenues go to master's piggy bank.
Every 10 minutes some coins are dropped in a big dark pool and everyone interested in catching them play hungry hungry hippos until some lucky person gets it.
It's just a currency for Silk Road.
That's how it is explained.
As clear as when I always remember when I wanna understand how is it addicted to the real economy.
That's not true. Just because Silk Road is one of its main uses, there are many others. I think Bitcoins will do really well in gaming, small payments, and international trade.
Some people are incensed by “hoarders” – not I. I don’t give a damn. At least Bitcoin hoarders never had to kill anyone to obtain their wealth, unlike those who control land and other natural resources.
> There’s a room that anyone can access. The room has security cameras that anyone can view, and every second of recorded footage is available online forever.
's/anyone can access/noboby can access/'
's/anyone can view/noboby can view/'
>Naturally, these piggy banks have coin slots, and everyone can see which coins are in which piggy bank.
's/everyone can see/nobody can see/'
(Hide it == Show it)
> These piggy banks can never leave the room.
's/leave the room/leave to the light/'
>Then, I walk into the room with a ski mask on.
>> with a ski mask on.
Yeah, You mean it!
>Anyone in the world can see me on the security cameras, but not my face.
>> but not my face.
That's what we are paid for.
>“Who made the robot..?”
The same who made these schemes and manipulations to rule the crowd.
"Why?"