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Lessons

Every lesson from every course, in course order. Each one states its outcome, teaches it, then checks it.

STAGE 1 · FOUNDATIONSMoney 101

A stack listing the three roles of money and six useful properties.
LESSONSbeginner

What money does

Money does three jobs and is good at them when it is scarce, durable, divisible, portable, verifiable and fungible.

5 min read · lesson 1 of 8
Timeline from barley and silver weights through coins, paper notes, central banks, 1971 and Bitcoin.
LESSONSbeginner

A short history of money

Money emerged from trade, not decree. Metal won for centuries; paper and bank money added convenience and a new issuer to trust.

6 min read · lesson 2 of 8
Treasury issues bonds, the Fed buys them with new reserves, banks lend and create deposits, and ordinary people receive the money last.
LESSONSbeginner

Fiat and central banks

Fiat money is backed by law, not by an asset. Central banks and commercial banks create it, and its supply has no ceiling.

6 min read · lesson 3 of 8
Bars showing 100 dollars of purchasing power falling to about 74, 55, 41 and 31 over 10, 20, 30 and 40 years at 3 percent inflation.
LESSONSbeginner

Inflation, explained

Inflation is money losing purchasing power. Even the official target compounds into most of your savings over a working life.

5 min read · lesson 4 of 8
New money flows from the central bank to banks, to asset owners, and finally to wage earners, with prices rising before it arrives.
LESSONSbeginner

The Cantillon Effect

New money reaches some people first. They spend it at old prices; everyone downstream pays new prices. That is why money printing widens inequality.

5 min read · lesson 5 of 8
Two panels comparing the Bretton Woods gold-linked system with the fiat era after 1971.
LESSONSbeginner

What happened in 1971

On 15 August 1971 the US ended the dollar's convertibility to gold. Since then every major currency floats, backed by nothing but policy.

6 min read · lesson 6 of 8
Two panels comparing high and low time preference.
LESSONSbeginner

Time preference

Time preference is how much you value the present over the future. Money that leaks pushes people to spend; money that holds lets them plan.

5 min read · lesson 7 of 8
A two-by-two grid comparing who sets the supply and who can verify it; Bitcoin sits where rules are fixed and anyone can verify.
LESSONSbeginner

Separating money and state

Hayek argued good money needs to be taken out of the hands of government by a route they cannot stop. That is the idea Bitcoin tests.

5 min read · lesson 8 of 8

STAGE 2 · UNDERSTAND BITCOINBitcoin in 21 minutes

STAGE 2 · UNDERSTAND BITCOINBitcoin explained: what it is and why it matters

A stack describing Bitcoin as a fixed-supply digital money, a rule-checking network, a public ledger, with no company behind it.
LESSONSbeginner

What is Bitcoin?

Bitcoin is digital money with a fixed supply, run by a network that anyone can join and verify. There is no company behind it.

6 min read · lesson 1 of 8
Timeline from Chaum in 1982 through Hashcash, b-money, RPOW, Bit Gold, the 2008 whitepaper and the 2009 genesis block.
LESSONSbeginner

Satoshi and the origin story

Bitcoin came out of the cypherpunk movement after decades of attempts at digital cash. Its creator published it, ran it for two years and left.

6 min read · lesson 2 of 8
Two panels: the properties that give bitcoin value, and the things it does not rely on.
LESSONSbeginner

Why does bitcoin have value?

Bitcoin has value for the same reason gold does: it is useful as money and it is scarce. Nothing "backs" it, and nothing backs the dollar either.

6 min read · lesson 3 of 8
One bitcoin equals 100 million satoshis.
LESSONSbeginner

Sats, units and the price

A bitcoin divides into 100 million satoshis. You never need a whole coin, and thinking in sats makes the price easier to read.

4 min read · lesson 4 of 8
A payment flows from address sharing to signing, the mempool, a block and confirmations.
LESSONSbeginner

Transactions, addresses and confirmations

To get paid you share an address; to pay you sign a transaction. It waits in the mempool, a miner includes it, and each block after that is a confirmation.

6 min read · lesson 5 of 8
Seed phrase derives private keys, which derive public keys, which derive addresses, each step one-way.
LESSONSbeginner

Keys: what you actually own

You do not store bitcoin; you store the keys that control it. A seed phrase recreates every key. Whoever has it has the coins.

5 min read · lesson 6 of 8
Five common questions about Bitcoin with short answers.
LESSONSbeginner

The first five questions

Anonymous? Criminal? Ponzi? Hackable? Too late? Short, honest answers to the questions every newcomer gets asked.

7 min read · lesson 7 of 8
Four next-step courses: getting started, self-custody, how Bitcoin works, why Bitcoin only.
LESSONSbeginner

Where to go next

You know what Bitcoin is. Here is how to choose the next course based on what you want to do.

3 min read · lesson 8 of 8

STAGE 2 · UNDERSTAND BITCOINBitcoin FUD, answered

Bars comparing Bitcoin electricity use with data centres, air conditioning and global totals.
LESSONSbeginner

"Bitcoin wastes energy"

Bitcoin uses about half a percent of global electricity, much of it stranded or renewable. The energy is what makes the ledger expensive to rewrite.

7 min read · lesson 1 of 10
Bars comparing estimated financial crime volume in fiat, other crypto and bitcoin.
LESSONSbeginner

"Bitcoin is for criminals"

Illicit use is a tiny fraction of bitcoin activity, and the public ledger makes it a poor tool for crime. Cash dominates.

5 min read · lesson 2 of 10
Two panels comparing the features of a Ponzi scheme with Bitcoin.
LESSONSbeginner

"It's a Ponzi scheme / greater fool"

A Ponzi needs an operator, promised returns and hidden books. Bitcoin has none, pays no one, and has survived every collapse in inflows.

5 min read · lesson 3 of 10
A stack of the sources of monetary value: scarcity, usefulness, network, security.
LESSONSbeginner

"It has no intrinsic value"

Nothing has intrinsic value; value is what people assign. Bitcoin's value rests on scarcity, usefulness as money and security, like gold's but more so.

5 min read · lesson 4 of 10
Fewer than five percent of people own any bitcoin.
LESSONSbeginner

"It's too expensive / I'm too late"

Under 5% of people own bitcoin, and it is divisible into sats. "Too late" has been said at every price so far.

4 min read · lesson 5 of 10
A flow showing why a small, fixed-supply, newly adopted money is volatile.
LESSONSbeginner

"It's too volatile to be money"

Volatility is what adoption from zero looks like when supply cannot respond. It has fallen over time, and it is a feature of the journey, not the destination.

5 min read · lesson 6 of 10
Two panels: what quantum computing could threaten in Bitcoin and what it would not.
LESSONSbeginner

"Quantum computers will break it"

A large quantum computer could threaten signatures, not hashing. Upgrades exist, and the risk applies to all of modern cryptography, banks included.

6 min read · lesson 7 of 10
Two panels: what governments can and cannot feasibly do to ban Bitcoin.
LESSONSbeginner

"Governments will ban it"

Governments can ban exchanges and banks, not the network. Every national ban so far has pushed activity peer-to-peer. The trend is toward regulation, reserves and ETFs.

6 min read · lesson 8 of 10
A stack showing Lightning and other layers above the slow, final Bitcoin base layer.
LESSONSbeginner

"It's too slow and can't scale"

The base layer is slow by design so anyone can verify it. Payments scale on layers above it, as every money system has.

5 min read · lesson 9 of 10
Two panels on the claim that Tether props up bitcoin and what can be said about it.
LESSONSbeginner

"It's propped up by Tether and whales"

Tether is a company IOU and a real counterparty risk. It is one source of demand among many, and bitcoin's own ledger cannot be printed.

5 min read · lesson 10 of 10

STAGE 3 · OWN ITYour first bitcoin: buying, wallets, staying safe

STAGE 3 · OWN ITSelf-custody essentials

Seed phrase derives private keys, public keys and addresses, each step one-way.
LESSONSintermediate

Keys and addresses

A seed derives private keys, which derive public keys and addresses. Only the seed needs backing up; only addresses should be shared.

5 min read · lesson 1 of 10
A ladder of custody options from custodial to multisig.
LESSONSintermediate

Custody options, from easy to sovereign

From custodial accounts to hot wallets, hardware wallets and multisig: what each protects against and what it costs you in effort.

6 min read · lesson 2 of 10
Five steps to set up a hardware wallet.
HOW-TO'Sintermediate

How to set up a hardware wallet

Verify the device, generate the seed on it, write and verify the words, set a PIN, then test a small amount in and out.

8 min read · lesson 3 of 10
Five steps for a durable seed backup.
HOW-TO'Sintermediate

Backing up a seed phrase properly

Write the words, verify by restoring, move to metal for durability, keep two copies in two places, and never store them digitally.

6 min read · lesson 4 of 10
A 2-of-3 multisig: three keys in three places, any two sign.
LESSONSintermediate

Multisig: when and how

Multisig needs several keys to spend. It removes single points of failure for larger holdings, at the cost of setup, maintenance and explaining it to heirs.

6 min read · lesson 5 of 10
Two panels comparing many small UTXOs with a few large ones.
LESSONSintermediate

Managing UTXOs

Your wallet is a pile of UTXOs. Many small ones cost more to spend and leak privacy. Consolidate when fees are low; keep KYC and non-KYC coins apart.

5 min read · lesson 6 of 10
A stack of privacy practices from easy to advanced.
LESSONSintermediate

Privacy for holders

Bitcoin is pseudonymous. Fresh addresses, your own node, separated coins, Lightning and CoinJoin each add privacy. KYC purchases link your identity; plan around it.

6 min read · lesson 7 of 10
A stack of five security habits.
LESSONSintermediate

Security habits and threat models

Most losses are ordinary mistakes. Passwords, 2FA, updates, address checks, tested backups and discretion cover most of the risk. Know your threat model.

5 min read · lesson 8 of 10
Two panels of inheritance setups, from simpler to more sovereign.
LESSONSintermediate

Inheritance: bitcoin that survives you

Self-custodied bitcoin without a plan dies with you. Choose a setup your heirs can actually execute, write instructions, and test them.

6 min read · lesson 9 of 10
Two panels of scams aimed at bitcoin holders and the right responses.
LESSONSintermediate

Scams aimed at holders

Holders face different scams from buyers: fake support, fake updates, tampered hardware, dust, and "connect your wallet" sites. Know the shapes.

5 min read · lesson 10 of 10

STAGE 4 · GO DEEPUnder the hood: how the network works

A digital coin is a file, files can be copied, so the same coin can be spent twice unless someone keeps the ledger.
LESSONSintermediate

The problem: double spending

Digital things can be copied, so digital cash needs a ledger. Every system before Bitcoin needed a trusted party to keep it.

5 min read · lesson 1 of 9
A transaction unlocks inputs, creates outputs including change, and the difference is the fee.
LESSONSintermediate

Transactions and UTXOs

Bitcoin has no account balances. It tracks unspent outputs. A payment unlocks whole outputs and creates new ones, with change back to you.

6 min read · lesson 2 of 9
An output locked to a public key hash is unlocked by a signature that nodes verify with the public key.
LESSONSintermediate

Keys, hashes and signatures

Outputs are locked to keys. A signature proves the holder authorised one exact transaction without revealing the key. Hashes tie everything together.

6 min read · lesson 3 of 9
The fields of an 80-byte block header: version, previous hash, Merkle root, timestamp, bits and nonce.
LESSONSintermediate

Blocks and the chain

A block is a header plus transactions. The header links to the previous block and commits to every transaction through a Merkle root.

6 min read · lesson 4 of 9
A loop of building a block, hashing with a nonce, checking against the target and repeating until found.
LESSONSintermediate

Mining and proof of work

Miners hash block headers until one falls below a target. The work is useless except as proof that it was done, which is exactly what makes history expensive to change.

6 min read · lesson 5 of 9
Two panels: when blocks are too fast difficulty rises; when too slow it falls.
LESSONSintermediate

The difficulty adjustment

Every 2,016 blocks the network retunes the target so blocks keep arriving every ten minutes, whatever the hash rate. This keeps issuance on schedule.

5 min read · lesson 6 of 9
A proposed block is checked by every node and accepted or dropped.
LESSONSintermediate

Nodes, consensus and the longest chain

Full nodes verify every rule and reject anything invalid, no matter how much work is behind it. The valid chain with the most work wins.

6 min read · lesson 7 of 9
Illustrative bars of fee rates and expected confirmation times.
LESSONSintermediate

Fees and the mempool

Unconfirmed transactions wait in each node's mempool. Miners take the highest fee per byte first. Fees are the market for scarce block space.

5 min read · lesson 8 of 9
The twelve sections of the Bitcoin whitepaper grouped into five bands.
LESSONSintermediate

Reading the whitepaper

You now know every concept in the whitepaper. This lesson maps its twelve sections to what you have learned and sends you to read it.

7 min read · lesson 9 of 9

STAGE 4 · GO DEEPBitcoin's monetary policy

STAGE 4 · GO DEEPMarkets and price

Price forms from orders across exchanges, aligned by arbitrage and averaged into indexes.
LESSONSintermediate

How the price is set

There is no official bitcoin price. It is set by trades on hundreds of exchanges, kept aligned by arbitrage and summarised by indexes.

5 min read · lesson 1 of 8
Bars showing bitcoin's largest drawdowns in each cycle.
LESSONSintermediate

Volatility and drawdowns

Bitcoin has fallen more than 75% four times. Anyone holding it should expect that again. Each fall so far has ended above the previous cycle's peak.

5 min read · lesson 2 of 8
Timeline of halvings and subsequent price peaks.
LESSONSintermediate

The four-year cycle

Peaks have followed halvings by about a year, three times. That is a pattern worth knowing and a sample too small to bet on.

6 min read · lesson 3 of 8
Two panels comparing spot ETF shares with self-custodied bitcoin.
LESSONSintermediate

ETFs, IOUs and real bitcoin

ETFs give price exposure inside the traditional system, with a custodian and a fee. Real bitcoin is the asset. Know which one you want and why.

6 min read · lesson 4 of 8
A quadrant of bitcoin holders by capital-market access and bitcoin allocation.
LESSONSintermediate

Treasury companies and corporate adoption

Treasury companies are public firms whose main asset is bitcoin, bought with stock and debt. Leveraged exposure for investors, with corporate risk attached.

5 min read · lesson 5 of 8
A chain of liquidations: price dips, leveraged positions are liquidated, forced selling pushes price lower.
LESSONSintermediate

Derivatives, leverage and liquidations

Futures, perpetual swaps and options let traders bet with borrowed money. Liquidation cascades are why bitcoin moves 10% in an hour.

6 min read · lesson 6 of 8
A stack of what on-chain metrics can and cannot tell you.
LESSONSintermediate

Reading on-chain data

The public ledger reveals holder behaviour: dormancy, exchange flows, realised price. It does not reveal fair value. Use it to understand, not to predict.

6 min read · lesson 7 of 8
A stack of five ways charts mislead: scale, overfitting, survivorship, hindsight narrative, and hidden leverage.
LESSONSintermediate

How people fool themselves with charts

Log scale, overfit models, survivorship bias and morning-after narratives. Learn the traps so the dashboard informs you instead of flattering you.

5 min read · lesson 8 of 8

STAGE 4 · GO DEEPWhy Bitcoin only

Two panels comparing Bitcoin's launch with a typical altcoin launch.
LESSONSintermediate

The immaculate conception

Bitcoin launched with no founder to lean on, no insiders, no company and no price. Every later coin had all four. That cannot be copied.

5 min read · lesson 1 of 8
Two panels comparing proof of work and proof of stake.
LESSONSintermediate

Proof of work versus proof of stake

Proof of work ties security to real resources anyone can buy. Proof of stake ties it to existing wealth, concentrates control and recreates the system it was meant to replace.

6 min read · lesson 2 of 8
A stack of five questions for judging whether a project is decentralised.
LESSONSintermediate

Decentralisation is not a spectrum

Either someone can change the rules or no one can. Five questions separate systems that are decentralised from systems that say they are.

5 min read · lesson 3 of 8
Two panels comparing Bitcoin and Ethereum on goal, supply, consensus, governance and node cost.
LESSONSintermediate

Why Ethereum is not a better Bitcoin

Ethereum is a platform with a foundation, a changing monetary policy and a rolled-back chain. It is a different project, not a better Bitcoin.

6 min read · lesson 4 of 8
A stack decoding DeFi yield, NFTs, utility tokens and stablecoins.
LESSONSintermediate

DeFi, NFTs and tokens

Most of "crypto" is finance with the protections removed. Yield comes from lending or token printing; NFTs are links; tokens are unregistered equity.

5 min read · lesson 5 of 8
Bars comparing years of continuous operation for Bitcoin and other networks.
LESSONSintermediate

Network effects and Lindy

Money is the strongest network effect there is. Bitcoin has the users, the hash rate, the infrastructure and the longest record of just working.

5 min read · lesson 6 of 8
Two panels on what diversification means versus what diversifying into altcoins actually gives you.
LESSONSintermediate

Is there a second best?

There is no second best because the category has one member. Diversifying across tokens adds issuer risk and correlation, not safety.

5 min read · lesson 7 of 8
Scepticism protects newcomers from projects promising returns.
LESSONSintermediate

Why bitcoiners are "toxic"

The reputation for harshness has a cause: the industry around bitcoin has separated millions of people from their savings, and politeness did not stop it.

4 min read · lesson 8 of 8

STAGE 4 · GO DEEPLightning and layers

Payment layers above a settlement layer.
LESSONSintermediate

Why layers?

Every node checks every transaction, so the base layer is capped. Layers move everyday payments off-chain and settle on it when needed.

4 min read · lesson 1 of 7
Open on-chain, update off-chain, route through others, close on-chain.
LESSONSintermediate

How Lightning works

Two parties lock bitcoin in a shared output and update who owns what by signing new balances. Payments hop across channels using HTLCs, so no hop can steal.

6 min read · lesson 2 of 7
Two panels comparing custodial and self-custodial Lightning wallets.
LESSONSintermediate

Using Lightning as a person

Custodial Lightning wallets are instant and trusting; self-custodial ones give you keys and channels. Keep spending money on Lightning, savings on-chain.

5 min read · lesson 3 of 7
A channel's capacity is split between outbound and inbound liquidity.
LESSONSintermediate

Liquidity: the thing nobody explains

A channel's capacity is shared between the two sides. You can only receive what is on the other side. New users must get inbound liquidity to be paid.

5 min read · lesson 4 of 7
Two panels on what Lightning hides and what it still reveals.
LESSONSintermediate

Privacy and honest limits

Lightning payments are off the public ledger and onion-routed, which beats on-chain. Channels are still public, and custodial wallets see everything.

5 min read · lesson 5 of 7
Layers ordered by how much trust they require.
LESSONSintermediate

Liquid, Fedimint, Cashu and custodians

Beyond Lightning: Liquid is a federated sidechain, Fedimint a community-run e-cash federation, Cashu single-mint e-cash. Each trades trust for privacy and ease.

6 min read · lesson 6 of 7
Two panels on whether to run a Lightning routing node.
LESSONSintermediate

Should you run a Lightning node?

Running a Lightning node teaches you the system and serves your own payments. As a business it rarely pays. Most people should use a good wallet instead.

5 min read · lesson 7 of 7

STAGE 4 · GO DEEPBitcoin mining

A miner builds a template, hashes repeatedly, and broadcasts a block when the hash is under target.
LESSONSintermediate

What a miner actually does

A miner assembles a candidate block, hashes its header trillions of times per second with different nonces, and broadcasts when one hash is below the target.

5 min read · lesson 1 of 7
Timeline of mining hardware from CPUs to modern ASICs.
LESSONSintermediate

From CPUs to ASICs

Mining moved from CPUs to GPUs to ASICs, chips that only compute SHA-256. Efficiency in joules per terahash decides who survives.

5 min read · lesson 2 of 7
A pool builds templates, miners submit shares, rewards are split by contribution.
LESSONSintermediate

Mining pools and Stratum V2

Pools combine hash power so miners get steady income. The pool chooses the transactions, which concentrates power; Stratum V2 hands that choice back to miners.

5 min read · lesson 3 of 7
Revenue depends on hashprice; cost depends on power and efficiency; halvings cut revenue.
LESSONSintermediate

The economics: hashprice and halvings

Hashprice (dollars per terahash per day) times your hash rate is revenue; power price times efficiency is cost. Halvings cut revenue in half; survivors are the efficient.

6 min read · lesson 4 of 7
A stack of ways mining interacts with electricity grids.
LESSONSintermediate

The energy debate, in depth

Mining is a flexible, location-agnostic electricity buyer, which lets it use stranded and surplus power and stabilise grids. It also uses real energy, and the trade is a judgment.

7 min read · lesson 5 of 7
Two panels on what miners can and cannot do.
LESSONSintermediate

What miners can and cannot do

Miners order transactions and can briefly censor or reorganise at great cost. They cannot print coins, spend others' coins or change the rules. 2017 proved it.

5 min read · lesson 6 of 7
Two panels on when home mining makes sense.
LESSONSintermediate

Should you mine at home?

At household power rates, home mining loses money against simply buying. It makes sense with cheap power, useful heat, a desire for non-KYC coins, or as education.

5 min read · lesson 7 of 7

STAGE 5 · MASTERKeys, addresses and Script

There are 2 to the 256 possible private keys.
LESSONSadvanced

Private keys: 256 bits of randomness

A private key is a random number between 1 and about 1.16 × 10⁷⁷. Its security rests entirely on the randomness that made it.

6 min read · lesson 1 of 8
A private key multiplies the generator point to produce a public key point, encoded as 33 bytes.
LESSONSadvanced

Public keys and the curve

A public key is the generator point of the secp256k1 curve multiplied by the private key. Easy to compute, infeasible to reverse, and 33 bytes when compressed.

6 min read · lesson 2 of 8
A stack listing Bitcoin address types and what each pays to.
LESSONSadvanced

Addresses: every format explained

An address is an encoding of a script template plus a hash or key. The prefix tells you which: 1 for P2PKH, 3 for P2SH, bc1q for SegWit, bc1p for Taproot.

7 min read · lesson 3 of 8
A P2PKH script executes: push signature and public key, duplicate, hash, compare, check signature.
LESSONSadvanced

Bitcoin Script: locks and keys

Every output carries a locking script; every input provides an unlocking script. Nodes run them on a stack machine. Script has no loops, which keeps it predictable.

7 min read · lesson 4 of 8
Two panels comparing ECDSA and Schnorr signatures.
LESSONSadvanced

Signatures: ECDSA and Schnorr

A signature proves knowledge of a private key for one exact message. ECDSA was Bitcoin's original scheme; Schnorr, added with Taproot, is smaller and lets keys combine.

6 min read · lesson 5 of 8
Words become a seed, a master key, a derivation path and addresses.
LESSONSadvanced

HD wallets, seeds and derivation paths

A seed phrase becomes a master key that derives a tree of keys. The derivation path says where in the tree; without the right path, the right words find an empty wallet.

7 min read · lesson 6 of 8
Two panels on what SegWit and Taproot changed.
LESSONSadvanced

SegWit and Taproot under the hood

SegWit separated signatures from the transaction ID and introduced block weight. Taproot added Schnorr and lets complex spending conditions hide behind a single key.

7 min read · lesson 7 of 8
A PSBT moves through creator, updater, signer, finalizer and extractor roles.
LESSONSadvanced

PSBTs and air-gapped signing

A PSBT is a standard container for a transaction that is not fully signed yet. It lets hardware wallets, air-gapped devices and multisig co-signers each do their part.

5 min read · lesson 8 of 8

STAGE 5 · MASTERRunning a node

STAGE 5 · MASTERUpgrades and governance

The path from an idea to an enforced rule: discussion, BIP, code, nodes, economic majority.
LESSONSadvanced

How changes happen: BIPs and the people

Changes are proposed publicly as BIPs, reviewed, coded and released. They become rules only when node operators run them. Developers write; users decide.

6 min read · lesson 1 of 7
Two panels comparing soft forks and hard forks.
LESSONSadvanced

Soft forks, hard forks and activation

Soft forks make rules stricter and stay compatible; hard forks loosen them and split anyone who does not upgrade. Activation methods decide when and who enforces.

6 min read · lesson 2 of 7
Timeline of the Blocksize War from 2015 to 2017.
LESSONSadvanced

The Blocksize War

From 2015 to 2017 big-block proposals backed by most miners and businesses tried to change Bitcoin. Node operators refused, enforced SegWit themselves, and won. It defined who rules.

8 min read · lesson 3 of 7
Bars comparing forked coins' prices to bitcoin's.
LESSONSadvanced

Forks that became altcoins

Bitcoin Cash, Bitcoin SV, Bitcoin Gold and others forked the chain with changed rules. Each kept Bitcoin's history and lost its network. The market chose the original.

5 min read · lesson 4 of 7
Two panels on what covenant proposals would enable and what people worry about.
LESSONSadvanced

Current debates: covenants, OP_CAT, inscriptions

Covenant proposals (CTV, OP_CAT and others) would let coins restrict their own future spending. Inscriptions and OP_RETURN limits are fights over what block space is for.

7 min read · lesson 5 of 7
A stack of the software that runs Bitcoin.
LESSONSadvanced

Core, Knots and the client ecosystem

Bitcoin Core runs most nodes; Knots and others differ in policy, not consensus. Diversity is healthy as long as everyone agrees on what is valid.

4 min read · lesson 6 of 7
Ways to participate in Bitcoin governance, from running a node to contributing.
LESSONSadvanced

How to participate

Governance is not a spectator sport. Running a node is a vote; reading proposals is informed consent; testing and funding keep development independent.

4 min read · lesson 7 of 7

STAGE 5 · MASTERLightning internals

STAGE 5 · MASTERTaxes and estate planning (US)

Two panels listing non-taxable and taxable bitcoin events in the US.
LESSONSadvanced

Property, not currency

Since 2014 the IRS treats bitcoin as property. Disposals (selling, spending, exchanging) realise gains; receiving it as income is ordinary income; buying and holding is nothing.

5 min read · lesson 1 of 7
Two panels comparing FIFO with specific identification methods.
LESSONSadvanced

Gains, holding periods and lot methods

Gain is proceeds minus basis; the rate depends on holding period. Which coins you sold is a choice between FIFO and specific identification, and it changes the number.

7 min read · lesson 2 of 7
The flow from broker statements and records through Form 8949 and Schedule D to the 1040.
LESSONSadvanced

Forms, 1099-DA and reporting

From 2026 brokers report sales and basis on Form 1099-DA. You list every disposal on Form 8949, total on Schedule D, and report income separately. Broker reports are often incomplete.

6 min read · lesson 3 of 7
Selling at a loss, rebuying, and using the loss against gains.
LESSONSadvanced

Tax-loss harvesting

Selling at a loss and rebuying realises a loss that offsets gains. Bitcoin is not currently subject to the wash-sale rule, which may change. The basis resets lower.

5 min read · lesson 4 of 7
Two panels on retirement accounts and trusts or LLCs as bitcoin wrappers.
LESSONSadvanced

Retirement accounts, trusts and LLCs

Self-directed IRAs can hold real bitcoin with tax-advantaged growth. Trusts control inheritance and avoid probate; LLCs serve businesses. Each needs a custody plan.

6 min read · lesson 5 of 7
The stepped-up basis: heirs inherit at date-of-death value.
LESSONSadvanced

Inheritance and the stepped-up basis

In the US, inherited property gets a basis equal to its value at death, erasing the deceased's unrealised gain. Estate tax applies only above a very high exemption. Keys must still be reachable.

5 min read · lesson 6 of 7
A stack of records to keep for bitcoin taxes.
LESSONSadvanced

Businesses, mining and records that survive an audit

Businesses holding bitcoin follow fair-value accounting since 2025; mining is income at receipt. For everyone, records that prove basis and reconcile transfers are the whole game.

5 min read · lesson 7 of 7

STAGE 5 · MASTERBitcoin and the state