Topic: Bitcoin is WAY too confusing for the average person - page 3. (Read 2980 times)

It will work when you send it. This is because your instance of Multi-bit is associated with your private key. It will take some time to arrive- at least 5-10 minutes.

The import/export is designed for backup and, yes, to use on another device/machine/environment as in your example.

Absence  of Danny's private key, as far as I understand.

When Danny sends btc to somebody, program actually spreads a word around whole bitcoin network, that output address X transfers that much to input address Y. And you can not impersonate Danny, because his word is signed by his private key, which you do not have. AFAIU, cryptographic witchery works this way.
  

Smiley & Danny,

At the moment I don't have any BTC so I'm just using words for examples.

Say right now I'm in my Multi-bit Wallet and I have 1 BTC, and I haven't done the "export private key option" yet.

If I want to send my 1 BTC coin to another address...does it just "work"? Or does the program ask for a password/private key for the send to be complete?

Is the "export private key option" only if I want to access my coins at a friend's house on his Multi-bit software for example by using the "import private key" option?

The address is a one-way derivative of the private key (i.e., you can calculate the address from the private key, but not the other way around).
With just the address, all you can do is look on the blockchain and see the amount in that address.
Only someone with the corresponding private key can actually make a valid transaction from that an address.

Danny, Thank you. PLEASE don't hate me for asking this ( I know it seems stupid) but I think it will help me wrap my head around it better.

Say your address is: 1AD1PeA41UYrcdtg68jcZoEzHJYTEh5XrZ

What prevents ME from getting into your wallet and taking your bitcoins? Is it because YOU (for example) have the only wallet in existence tied to that address? (as well as the only means of making a key that can access that wallet?)

Having a key means access to the bitcoins tied to that key
&
Having the address means you can only send to that address

Correct?

Thank you

I don't buy the 'if your parents can't use it it's too complex' argument.  Aside from many parents being quite capable, the idea that if something is complicated nobody will use it is bunk.

You know what's complicated?  Video game controllers, TV remotes (many people have 3 or 4 of them just to watch TV), driving a car, paying your bills, checking email, social networking, the list goes on...  These are all very profitable and successful products, despite their complexity.  People just need to see a benefit to overcome the learning curve.  Even the biggest idiot in the world can strap themselves into a steel and fiberglass cage with wheels and go barreling down a highway at 80 MPH because they see a benefit in being able to travel like that, so they overcome the complexity of learning how to operate a vehicle legally.

The problem isn't the complexity, it is that the benefits aren't clear.  People on Cyprus probably see the benefit of something like bitcoin pretty clearly right now, but most people don't.

I also think that the noob material glosses over the technical details too much, which makes people wary of trusting the currency.  I'm a semester away from a bachelors degree in economics, I actually do understand where traditional currencies come from and their histories and monetary policy and fiscal policy and all of that.  The noob documentation for bitcoin seems written to deliberately obfuscate where the chain blocks come from and the history of the bitcoin and how it all really works.  I'm still wrapping my head around it and when I'm done I plan to study other cryptocurrencies so that I understand this class of currency before I put a dime into it.  I just wish the noob documentation wasn't so dumbed down.

My impression of me reading the noob documentaiton:

FAQ:  Bitcoin is money!  It's free of control from a legitimate government, so you should buy it!
Me:  How is it different from Warcraft gold or Confederate dollars from the American Civil war?
FAQ:  Bitcoin is money!
Me:  Right.  **close browser window, run another search to hopefully find something that wasn't written for kindergartners**

Start here if you want meat rather than fluff when you are trying to understand bitcoin:
http://bitcoin.org/bitcoin.pdf

(thanks again for that link, deathandtaxes!)

I double this analogy. You look for alternatives only when you are not satisfied with mainstream service.

When I bought my first car (used one), I was pissed off by how badly those workshops rip my money off for basic maintenance. My friend advised my to buy $15 Haynes Mazda book in Borders. This saved me a lot of money. I kept the book in my trunk, and after short practice in my drive way, I could take many things in my car apart.

IMO, same is true with crypto money or any other technology. If you are pissed of by you bank, learn how those alternatives work, spend some effort. Otherwise, just stick to your usual ways.

It seems you are not paying attention.  You never need to "make private keys".  MultiBit should handle the private keys for you.  You need to have a safe backup of the file where MultiBit stores the private keys in case your computer is destroyed (hard drive crash, fire, flood, tornado, lightning strike, burglary, etc). This has nothing to do with trusting the people in your home.


I'm not sure what you are attempting to protect from.  But if you are concerned that a hacker might get access to the private keys that MultiBit stores, then the only way to protect againast that is to create a bitcoin address on a computer that has never been connected to the internet.  Then store the private key of that address somewhere secure, and create a transaction online sending all your bitcoins to that address.


When you say "key code" I assume you are asking how to get a copy of all the private keys of all the bitcoin addresses in your MultiBit wallet?  This is a question I am also curious about.  I've never sued MultiBit.  Perhaps someone who uses MultiBit regularly will stop by with information on how to export and import private keys?  Otherwise, we could try looking at the MultiBit website and see if they have any information there.

Just make sure it is password protected and encrypted (ie. asks for a password when you send BTC). Then that is all you need to do.
Make sure you keep your PrivateKey Private (don't tell anyone), and keep it some where very safe. No need to delete things.
You don't have to keep it open all the time, that is a personal preference.

It was actually my Partner who said it in that context, I agreed with her of course as someone who has a Paypal account and used it for business purposes for a few years (still do). Helps pay the bills, till more people I work with are willing to switch over to Btc.

I guess next thing I need to learn Is how to access my bitcoins if I don't have an active wallet, and the private .key file happens to corrupt. That is the part that scares me

OP, give it some more time. You're on your way by asking questions and getting answers.

Personally, it took me about month of weekends to feel confident enough to convert some USD to BTC. For new users, I think the wallet and security around it is one of the more intimidating sides of Bitcoin. Just check out the stickied threads in this forum for some peace of mind.

To think that I almost got into Bitcoin when they were $8 bucks each makes me want to slap my past self!

Lethos, you are dead on about it being easier than PayPal! With PP's increase in fraud protection (good), it's a pain in the ass to get a full featured account going (bad)!

Danny, thank you!

I guess another question is this, will help me wrap my head around it: say I trust everyone in my home And have no fear of theft, then in that scenario, I can always just leave multi bit open, and have no need to access or make private keys, right?

On the otherhand, since multi bit opens the wallet automatically everytime upon opening, if I want to be super secure then after every transaction I export another private key, close the program, delete the wallet file on my computer, and then hide the key file somewhere of my choosing, right?

Also if anyone knows how to get the key code from a multi bit file please tell me (in case I have a lot of bitcoins someday, and the .key file goes corrupt. Thanks!

And to the other guy, I wasn attacking! I obviously said in the beginning my stupid brain was having trouble with this... Not attacking bitcoin

I am a barrel of laughs in this thread

I've used many different Bitcoin wallets over my time using bitcoin (mostly as a miner), I trade more now.

Admittedly Multibit was not one I tried. It is suppose to be pretty user friendly, but the standard client (bitcoin qt) for me was already exactly that, especially now with the windows installer, being so awesome and simple.

My Partner, recently relented and asked about Bitcoin, she said it was a lot bloody easier than trying to setup and use her Paypal account and Barclay's account. To me that says a lot. Also trades are done quick 24/7 and don't cost anything, even international, amazing!

She loves it. She does some international and local trade like myself, but she's not very techy, so usually had left this up to me, she did it her self this time.


To Attempt to answer your questions:


1) Private key, please excuse the vagueness, think of this as a combination of your account number and your password in one key - Only you should know this. You only need this for backup purposes, so it is essential, but won't be asked for by the client, after it's first imported into a wallet.
Your Wallet is just the account where your bitcoins are stored, depending on the client, you can have multiple accounts in one wallet, or just one.
Public key, is just your account number. This is known so others can send BTC to and you vice versa.

Generally speaking all wallets also should be password protected & encrypted. So any transaction, has to ask you for that password. You can view but not touch so to speak.

2) The private key, is a very unique key that identifies your account yes. But it's value or any information outside of that is not stored in the key it self. It is stored in the blockchain, that can be re-downloaded. So if the wallet.key file becomes corrupted, the worse you'd need to do is download the blockchain again or repair it. In the unlikely scenario also re-inserting your private key might be needed I suppose. But as long as you got that private key, you won't lose your Bitcoins, due to a corrupted file.

LOL.  You're funny.

So, since my parents are able to use bitcoin, this means is isn't too complicated, right?

It is an experiment and in beta, so your parents shouldn't be using it.

Well tech support from india, isn't a higher computer knowledge, but I hate complainers if I sat around and complained about everything that is wrong or unless in bitcoin, I would be spamming the forum everyday with 1000's of post. So this is what I say, how about you ask questions nicely and maybe people will help you without being an idiot. Also if you think a day of reading will wrap your head around bitcoin your are very wrong. Maybe a whole weekend will help you, I am very highly skilled in computers, and I still learn stuff. Some people find that to be the beauty of bitcoin, but trust me average people can learn the basics of bitcoin, and the core. Just like I don't know the SSL RFC by heart, but I know enough that I know how it works and average people don't know the SSL RFC at all and they can do banking knowing it is secure. Bitcoin is so young and to attack it like that is just so unfair, get an open mind and then come back to it.

Agree, if your parents cannot use it, it's too complicated.

If you cannot explain it in one paragraph it's too complicated.

People use services not software.

Geeks with Asperger Syndrome will never understand this.

This is why most of them are jobless and girl-friendless.

Ya, when you start seeing grandma btc buying clubs spring up - because it's all made easy-to-learn, easy-to-buy by start up companies, who see it's current complexity as the $ (or btc) opportunity (to bring it to the average person) - then we might be looking at a bubble.   

Years out.  Until then, the only bubble is fiat.