Topic: Bitcoins are never in the wallet... (Read 656 times)

Bitcoins don't exist at all. There is only a log of transactions between addresses, and the numbers of balances associated with the addresses is what we interpret as 'bitcoins'.

Talking about 'having or sending bitcoins' is just an easy metaphor that makes sense in a practical approach.

Will people lose their interest in the euro or dollar because these don't exist either? They're just numbers on a bank account. Sending euros from my account to yours doesn't actually transfer anything, there are no euros involved whatsoever. The balance associated with my bank account (which is essentially just some number in a database) is lowered, the number on your bank account is raised, and that's it. Nothing is "transferred", certainly no "euros".


You rarely deal with public keys, you probably mean Bitcoin addresses (which are hashes of public keys).

Public addresses can be described as "bank accounts". Except there's no bank involved, and they're publicly visible (that is, its existence and holdings), and not linked to any owner or account holder or identity.
Private keys can be described as the internet banking login+password you need to spend the money on an address.

Effectively, anyone who has an address' private key can be considered the owner or account holder of that address.

Perhaps an even better metaphor:

Address = a transparent or glass safe, with an 'entrance only' slot though which anyone can put stuff in the safe (but not get anything out).
Private key = the secret combination to open the safe and get things out.

Where is the song "Rudolph the Red Nosed Reindeer?"

Yes, I often explain it to new people as:

The public key is your bank account number (which you can show everybody).

And the private key is your PIN code to acces (spend) your account.

Thank you...

Why it isnt explain this way right away...? I didnt do much research, but so far everywhere i looked there was just some complicated explanations... I really didnt read is explain this easy (as i did) anywhere so far... why that? Is the bitcoin comunity afraid that people might loose interesz when they figure out that they really dont own bitcoins :-)...?

(because back in the days i really belived that the bitcoins are present in the wallet.dat, until i thought about it more).

Also i would like to ask:

Public keys can be described as a "login" (in email)
And private keys might be desribed as "passwords" (in the email)

Do i understand it right again please? (and again didnt really see it anywhere explained with this basic words)...

Yes it is "correct"

There are only unspent outputs.

It's hard to say that Bitcoins are "present" anywhere at all.

Correct.

Think of Bitcoin as a ledger of accounts with balances.

The blockchain contains your account (public key) and the balance for that account.

To spend money from your account you need your password (private key).

Bitcoin splits your bitcoins into several accounts (public keys).

Your wallet is merely a list of your public keys with their associated private keys.

Just like having a file on your computer with a list of login names and passwords for all of your bank accounts. Anyone who has that list can log into your online bank account and move money.

Just want to ask if i understand all the issues right. So bitcoin are never present in your wallet, if you backup the wallet file, you are never backing bitcoins themselves, you never have bicoins by yourself... All you have stored in yoru wallet (in the wallet.dat backup) is just keys to the bitcoins... Bitcoins ("themselves" if it can be called this way) are always present JUST on the blockchain, you never "own" them, you own "just" the means to get to them (keys)...

Do i get it right... cause i have never read it put this way, but from i have read i understand it this way.