Im a fresh crypto/BTC beginner working on a rough draft explaining bitcoin to other beginners that reads - but mostly myself. Would someone point out any glaring inaccuracies in anything I’ve written so far? Much appreciate in advance!

Bitcoin is a cryptocurrency, an intangible digital asset whose value stems from the demand of those who wish to possess the rewards generated by the solving of cryptographic puzzles, whether they are aware of it or not.

That’s right. The first bitcoins were produced when Satoshi Nakamoto’s computer solved a cryptographic puzzle. These initial coins served as a reward for providing computational power to create a new block in the blockchain (will expand on these terms later). Have you ever heard the phrase ‘mining bitcoin’? This is essentially what Satoshi Nakamoto and all other bitcoin miners have done to increase their bitcoin balance and fortunes. Simply put, mining is the process of using computational power to solve complex cryptographic puzzles. Successfully solving these puzzles and demonstrating their solution is known as ‘proof-of-work.’

We need to hold off on discussing blocks and the blockchain for now, as these are protective mechanisms implemented by the Bitcoin network to solve important problems. For now, let’s focus on bitcoin and their transactions. Imagine you are a bitcoin miner. When your computer successfully establishes a new block after solving a puzzle, you become the beneficiary and owner of a certain number of bitcoins. This allocation of bitcoins to you constitutes a transaction—the network (payer) has rewarded you (payee) with X number of bitcoin (good ole' money).

Let’s take a look at a more familiar example: Bob transacts with Alice. He initiates a transfer of $10 to her. Bob’s wallet is debited $10, and Alice is credited $10. This transaction has a few components: a debit and a credit. A bitcoin transaction has a similar structure, except debits and credits are referred to as inputs and outputs. Remember this distinction.

Recall the first bitcoins mined by Satoshi; this involved a transaction where the network paid Satoshi, the payee. In this transaction, the bitcoin assigned to Satoshi is the output, but more specifically, it is an Unspent Transaction Output (UTXO). These UTXOs are the bitcoins that Satoshi, or any miner/beneficiary, can spend and exchange for goods and services. In essence, UTXOs = bitcoin. Miners are given rewards that equate to UTXOs, which in turn represent bitcoin. Rewards, UTXOs, and bitcoins are all one and the same.