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RE: LeoThread 2025-07-19 07:00

in LeoFinance3 months ago

Part 6/17:

A significant challenge for adoption lies in the metaphors and terminology borrowed from traditional finance. Labels like "wallets," "coins," and "accounts" are misleading because they create false expectations.

  • Wallets are not physical wallets but keychains. They store cryptographic keys, which are the real assets controlling Bitcoin.

  • The term "coin" is even more confusing, as in Bitcoin, there's no such thing as physical coins or even a single, indivisible unit called a coin. Instead, the network deals with transaction outputs—divisible chunks of value that are not trackable as "coins."

  • Bitcoin addresses do not have balances in the traditional sense; they control outputs, which collectively determine spendable funds, but this is often misunderstood.