To make the core principles of Bitcoin more understandable, bitcoin-as-a-game players use physical key cards (that we will call Bitcoin IOUs) that function like the paper money used in a Monopoly game. Here’s how it works:

Bitcoin as a Store of Value

In this simplified game, Bitcoin acts like a store of value. Just like players in Monopoly collect and save money over time, players in this Bitcoin game collect and hold Bitcoin IOU cards to preserve their wealth. These cards are physical representations of Bitcoin, and their value can fluctuate based on the Bitcoin network’s overall market performance. Players: Individuals or participants who own Bitcoin IOU cards (representing their Bitcoin holdings). Goal: The objective is to hold onto Bitcoin IOU cards as a store of value, with the hope that over time, their value will increase. No-Risk Participation: The Bitcoin IOU cards are tangible, and the players don’t need to worry about securing private keys or managing digital wallets. Their only task is to HODL the cards, trusting that the Bitcoin network will maintain value. In this analogy, the Bitcoin IOU card is a simplified way to hold Bitcoin, providing players with exposure to its value increase without needing to directly interact with Bitcoin's underlying technical infrastructure.

Bitcoin as a Medium of Exchange

In the game, Bitcoin IOUs are also used as a medium of exchange. Just like Monopoly money is used to buy properties and pay rent, Bitcoin IOUs can be exchanged between players as a way to settle transactions. If a player wants to buy something (whether it’s goods, services, or even another player’s Bitcoin IOU), they can exchange the cards. Players: Participants who use Bitcoin IOU cards to transact. Goal: The goal is to exchange Bitcoin IOU cards to facilitate transactions, just like using money in a real-world economy. No-Risk Participation: As with the store of value role, players don’t need to worry about the underlying mechanics of Bitcoin. They use Bitcoin IOUs like money in the game—there's no need to manage digital wallets, keys, or mining. They simply exchange the cards to participate in the game. In this role, Bitcoin IOUs work just like cash or currency in Monopoly. Players can use them to buy and sell items or services. The value of the Bitcoin IOU cards is determined by the overall worth of Bitcoin in the network, but players can use these cards without needing to know the technical details behind Bitcoin transactions.

The No-Risk Participation

Just like how Monopoly money can be used by anyone without worrying about how the money is printed or secured, Bitcoin IOU cards allow players to engage with Bitcoin in a no-risk way. They don’t need to manage wallets, deal with private keys, or understand the complexities of the Bitcoin network. They just use the cards as a form of money within the game, knowing they are backed by the value of Bitcoin in the broader network. No-Risk for Players: All players need to do is accept and exchange the Bitcoin IOUs. The technical aspects (such as securing private keys or validating transactions) are abstracted away. Players focus on the basic roles—saving value and transacting with others—just like using Monopoly money to play the game.

This analogy makes Bitcoin accessible by focusing on its two primary roles—storing value and acting as a medium of exchange—and showing how players can interact with Bitcoin through simple, verifiable physical cards (Bitcoin IOUs) without the need for technical knowledge or risk management.

In the next post we will explain how Bitcoin IOUs are created and take a look at the key infrastructure required for the game.