Topic: Common Q&A about bitcoin: non-technical edition. How much do YOU know? - page 5. (Read 1494 times)
March 03, 2018, 01:59:05 AM
March 03, 2018, 01:41:20 AM
Q: How do I cash out Bitcoin?
A: You can cash out bitcoin by selling it on the exchange that have FIAT pair, e.g : BTC-USD.Then from that exchange, you can withdraw your USD to your account such as : bank account, paypal account, and other fiat account.
You should offer resources for a Beginner or Newbie to make some decisions on which exchange they can use if they want to buy some Bitcoin!
I can do it for you, here's a few great resources:
March 03, 2018, 01:33:34 AM
Q: Isn't it too late to get into Bitcoin?
It's never too late to get into Bitcoin, people said this when 1 BTC was worth 1000$ and now they regret not getting into it.Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
Bitcoin is expensive because there is high demand for it with a very limited supply. But don't worry, you don't have to buy a whole Bitcoin. You can buy 0.01 of Bitcoin at a time or 0.005 BTC or whatever that suits you. Fractions of bitcoin are called Satoshis and 1 BTC = 100 million Satoshis.Q: Is Bitcoin safe?
It's safe as long as you keep your private keys safe, as in:Not giving it to people you don't trust, not letting people you don't trust access your computer if the keys are stored on it, Keeping your computer free of malware.
Public and private keys come in pairs, every public key has a private key. The public key is the address that you give other people to send you bitcoin and everyone can see your public key. While the private key serves as a "password" for the bitcoins you receive to the public key, in order to spend those bitcoins you have to use the private key.
I wasn't able to give an accurate explanation without getting into the technical details, I would have said that we actually give a hash of the public key to receive bitcoin but explaining what a hash is can't be done without getting too technical
I would actually like to hear from you on how to explain what is a private and a public key or we could both wait for someone to come and give a better explanation than mine.
Q: Who controls Bitcoin?
No one controls bitcoin, it's a decentralized cryptocurrency and its price depends on supply and demand.Investing in bitcoin is similar to investing in the stock market, if there is high demand for a certain stock the shares of that stock increase in their price. The same goes for bitcoin, when the demand for bitcoin is high its price increases and when the demand is low its price decreases.
As for the supply part, the total amount of bitcoins is limited to 21 million bitcoins, of those almost 17 millions are already in the market. The rest gradually enters the market through miners as an incentive for them.
Maybe add "Who are bitcoin miners?" or "What is bitcoin mining?" to the questions.
By the way, I've added your thread to my list, this way more people will be able to see it: List of Threads Giving Away Merits
March 03, 2018, 01:10:32 AM
Q: How do I cash out Bitcoin?
Then from that exchange, you can withdraw your USD to your account such as : bank account, paypal account, and other fiat account.
March 03, 2018, 12:08:51 AM
I'm going to add a question that I see a lot on the Beginners & Help board, which I also answer...but I want to open up some health discussion on this particular Q&A because I sense the answer is evolving.
Q: What is an Airdrop?
HabbyB's Answer: An Airdrop is the crypto currency distribution model used when a hard fork is attempted on an existing crypto currency. The forking coin must issue tokens to match the money supply of the crypto currency targeted for the fork, this creation and assignment of coins (seemingly out of thin air) was called an "Airdrop".
A few sources to support the original definition
[/list]
The discussion part...
More and more people are using the term "Airdrop" differently, I believe some of these new uses are appropriate and some are not.
Appropriate new uses of the term "Airdrop"
Inappropriate new uses of the term "Airdrop"
Another source, but I don't agree with it 100% - What are Airdrops?
A better source - What's a Cryptocurrency Airdrop? A Beginner's Guide
However you define it, Airdrops are risk as f*ck and their worth what you paid for them (which is usually nothing) because it requires a market to be created before they can earn any utility...this is incredibly difficult if the crypto currency doesn't have a good business model, and if to did it wouldn't have to give away free tokens as part of it's initial offering.
Thoughts?
Q: What is an Airdrop?
HabbyB's Answer: An Airdrop is the crypto currency distribution model used when a hard fork is attempted on an existing crypto currency. The forking coin must issue tokens to match the money supply of the crypto currency targeted for the fork, this creation and assignment of coins (seemingly out of thin air) was called an "Airdrop".
A few sources to support the original definition
[/list]
The discussion part...
More and more people are using the term "Airdrop" differently, I believe some of these new uses are appropriate and some are not.
Appropriate new uses of the term "Airdrop"
- Tokens given out as a reward to loyal customers/owners of an existing crypto currency
Inappropriate new uses of the term "Airdrop"
- Tokens given out when one participates in an advertising or bounty campaign to promote a new crypto currency - this is actually called "income" or "compensation
- Tokens given out for free to anyone who signs up to receive the new crypto currency, must be a new crypto currency - this is actually a "giveaway promotion"
Another source, but I don't agree with it 100% - What are Airdrops?
A better source - What's a Cryptocurrency Airdrop? A Beginner's Guide
However you define it, Airdrops are risk as f*ck and their worth what you paid for them (which is usually nothing) because it requires a market to be created before they can earn any utility...this is incredibly difficult if the crypto currency doesn't have a good business model, and if to did it wouldn't have to give away free tokens as part of it's initial offering.
Thoughts?
March 02, 2018, 11:08:47 PM
Common Questions & Answers about Bitcoin
Q. What is Bitcoin? Isn't it just made-up money?
A:Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies,products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Research produced by the University of Cambridge estimates that in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.
Q: Is Bitcoin a scam? What about a Ponzi scheme?
A: No Bitcoin is not a scam although you need to watch for independent scammers that may use Bitcoin or other cyrptocurrency either as a lure or form of payment.
Q: Isn't it too late to get into Bitcoin?
A: No, Bitcoin coin has huge long term growth potential.
Q: Is Bitcoin legal? I heard it's illegal in some countries. Why?
A: Legality of bitcoin is based on every country of a person who uses it. For example, a country banned bitcoin, this means that using bitcoin is already not legal for this country. Bitcoin is also legal as long as it is supported or acknowledged by a country or there as long as it is not banned. (answered by @purple.thoughts)
Q. Don't people use Bitcoin for the black market or for illegal stuff?
A: Of course it is [used for black market or illegal stuff]. Any form of anything that can generate money is. More crime is funded by fiat than Bitcoin, it's a bit of a moot question. The government/IRS bought software to track Bitcoin and blockchain tech. Sure at some point the government is bound to use national security in the quest to regulate Bitcoin but to avoid Bitcoin because it is used in crime is like avoiding cash cause someone snorted cocaine with the bill.
(answered by Walrus1)
Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
A:You don't have to buy a whole Bitcoin, you can buy satoshi's which are fractions of bitcoins from as little as £50 on some platforms like localbitcoins
Q: If Bitcoin isn't bad, why do famous financial gurus like Warren Buffet warn us to stay away from it?
A:Everybody has their own opinion on Bitcoin you need to try and make up yours.
Q: How do I cash out Bitcoin?
A: Use platforms like localbitcoins to sell out your Bitcoin
Q: Is Bitcoin safe?
A:Yes as long as you keep the password for your digital wallet safe and don't do things like let people you don't trust team viewer into your computer.
Q: Who controls Bitcoin?
A: No one, Bitcoin is a decentralised currency run by the people.
I hope some of my above feedback assist in some way. I also hope I earn some merits.
Q. What is Bitcoin? Isn't it just made-up money?
A:Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies,products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Research produced by the University of Cambridge estimates that in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.
Q: Is Bitcoin a scam? What about a Ponzi scheme?
A: No Bitcoin is not a scam although you need to watch for independent scammers that may use Bitcoin or other cyrptocurrency either as a lure or form of payment.
Q: Isn't it too late to get into Bitcoin?
A: No, Bitcoin coin has huge long term growth potential.
Q: Is Bitcoin legal? I heard it's illegal in some countries. Why?
A: Legality of bitcoin is based on every country of a person who uses it. For example, a country banned bitcoin, this means that using bitcoin is already not legal for this country. Bitcoin is also legal as long as it is supported or acknowledged by a country or there as long as it is not banned. (answered by @purple.thoughts)
Q. Don't people use Bitcoin for the black market or for illegal stuff?
A: Of course it is [used for black market or illegal stuff]. Any form of anything that can generate money is. More crime is funded by fiat than Bitcoin, it's a bit of a moot question. The government/IRS bought software to track Bitcoin and blockchain tech. Sure at some point the government is bound to use national security in the quest to regulate Bitcoin but to avoid Bitcoin because it is used in crime is like avoiding cash cause someone snorted cocaine with the bill.
(answered by Walrus1)
Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
A:You don't have to buy a whole Bitcoin, you can buy satoshi's which are fractions of bitcoins from as little as £50 on some platforms like localbitcoins
Q: If Bitcoin isn't bad, why do famous financial gurus like Warren Buffet warn us to stay away from it?
A:Everybody has their own opinion on Bitcoin you need to try and make up yours.
Q: How do I cash out Bitcoin?
A: Use platforms like localbitcoins to sell out your Bitcoin
Q: Is Bitcoin safe?
A:Yes as long as you keep the password for your digital wallet safe and don't do things like let people you don't trust team viewer into your computer.
Q: Who controls Bitcoin?
A: No one, Bitcoin is a decentralised currency run by the people.
I hope some of my above feedback assist in some way. I also hope I earn some merits.
March 02, 2018, 10:54:21 PM
Everything is influenced by supply and demand, and so is BTC! The demand of BTC will be increased in the market, and the price of BTC will be improved!
The number of BTC is certain! And BTC mining is getting harder, and the cost of mining BTC is increasing.
This leads to the increase of BTC price!
The number of BTC is certain! And BTC mining is getting harder, and the cost of mining BTC is increasing.
This leads to the increase of BTC price!
March 02, 2018, 10:31:31 PM
Bitcoin is controlled by all bitcoin users.
Unless most bitcoin users agree to make a change (such as rule changes or version upgrades), no one or organization can change or stop bitcoin.
Unless most bitcoin users agree to make a change (such as rule changes or version upgrades), no one or organization can change or stop bitcoin.
So then I can make new rules for how Bitcoin is used or created? As a user, I can create more Bitcoins? I can control the price of it, as long as I get my friends to agree? Although I know what you're trying to say, these are the types of questions you'll get back from someone who knows absolutely nothing about Bitcoin.
I purposefully left out a lot of questions that I get asked on a daily basis because I want you guys to be able to contribute to this list, as well. But I just got asked this one again a few minutes ago:
Isn't it too late to get into Bitcoin?
I'm adding it to the list and attempting to merit myself for it
Edit:
Quote
An Error Has Occurred!
You cannot send merit to yourself
You cannot send merit to yourself
March 02, 2018, 10:21:57 PM
Is btc used for black market or illegal activity, of course it is. Any form of anything that can generate money is. More crime is funded by fiat than Bitcoin, it's a bit of a moot question. The government/IRS bought software to track Bitcoin and blockchain tech. Sure at some point the government is bound to use national security in the quest to regulate Bitcoin but to avoid Bitcoin because it is used in crime is like avoiding cash cause someone snorted cocaine with the bill.
March 02, 2018, 10:20:01 PM
Bitcoin is controlled by all bitcoin users.
Unless most bitcoin users agree to make a change (such as rule changes or version upgrades), no one or organization can change or stop bitcoin.
Unless most bitcoin users agree to make a change (such as rule changes or version upgrades), no one or organization can change or stop bitcoin.
March 02, 2018, 10:05:16 PM
I want to answer the question Is bitcoin legal?. Legality of bitcoin is based on every country of a person who uses it. For example, a country banned bitcoin, this means that using bitcoin is already not legal for this country. Bitcoin is also legal as long as it is supported or acknowledged by a country or there as long as it is not banned.
Good answer. Thanks for getting this started. Have a merit
Everyone else, if you have a different answer for a question that has already been answered, feel free to answer it again! If it gets added to the Q&A list, you'll receive a merit for it.
I have also edited the original question (formerly "Is Bitcoin legal?") to make it more 'fuddy' ("Is Bitcoin legal? I heard it's illegal in some countries. Why?"), as I have LITERALLY just returned from dinner where a friend asked me why it was illegal in Ecuador, where he just returned from.
Cheers!
March 02, 2018, 07:07:19 PM
I want to answer the question Is bitcoin legal?. Legality of bitcoin is based on every country of a person who uses it. For example, a country banned bitcoin, this means that using bitcoin is already not legal for this country. Bitcoin is also legal as long as it is supported or acknowledged by a country or there as long as it is not banned.
March 02, 2018, 06:32:10 PM
Kind of funny how a bunch of noobs are complaining about how hard it is to earn merits, but when a topic is started to reward merit to those who want to actually contribute to something good for Bitcoin/forums, there's complete silence. Otherwise, other megathreads and bullshit "discussions" throughout this board are littered with spammy shitposts.
Either way, if you're looking to earn a merit or two, check out the original post and help contribute to something good!
Either way, if you're looking to earn a merit or two, check out the original post and help contribute to something good!
February 28, 2018, 08:01:24 PM
Common Questions & Answers about Bitcoin
Q. What is Bitcoin? Isn't it just made-up money?
A: Bitcoin is in some ways less of a made up money than the money the banks have conditioned us into believing is valid currency. Let me explain how, The main two problems with the Historic money systems is bank currencies/notes are manufactured/printed as required meaning banks can devalue your Bank note just by printing more and over circulating. The second main problem is bank notes state 'I promise to pay the bearer on demand the some of - Five pounds sterling' for example, this is supposed to link to a real commodities like Gold or silver and if we all wanted to cash our I O U's in at the same time would banks even have enough real commodities to cover this (I would not bank on it lol). Another simple way to look at these issues is banks that control 'current real money' are simply businesses and if banks go out of business your pieces of paper (e.g. bank notes) are worthless. Bitcoin solves these problems and is not manipulable like £, $, Euro etc.. is as the amount of Bitcoin has a predetermined amount that is hard coded into the source code. Another huge advantage the new money system Bitcoin has is the fat cats are not taking big 3rd party cuts on transactions especially international ones making Bitcoin already the preference for allot of people and business when completing international transfers. (@ScotlandPros)
Q: Is Bitcoin a scam? What about a Ponzi scheme?
A: Bitcoin isnt a scam or a ponzi scheme, it is a currency. The price can vary due to changes in supply and demand, but this doesnt affect bitcoins use as a currency to buy and sell products and services online and in person.
Ponzi schemes promise unrealistic rewards and rely on new investors to pay the profits of current investors, and in the end exit scam and leave the new investors with nothing.
This is not bitcoin. Bitcoin is in essence a software run by thousands of computers decentrally (and you access this network when you use a web wallet or desktop wallet). It is based on secure cryptography. Bitcoin isnt owned by one person and cant exit scam. Bitcoin will always be available as long as there are full nodes, miners and people who want to use it. And anyone can run a full node on their computer without high expenses or detailed technical knowledge.
Bitcoin is also deflationary, which means less bitcoin is generated per 4 years, which decreases new supply and keeps the price stable or increasing. This shows that bitcoin is planned for the long-term and will be around as long as we - the users - buy, sell, hodl and use bitcoin.
(answered by @retprogramisto)
Q: Isn't it too late to get into Bitcoin?
A: It's never too late to get into Bitcoin, people said this when 1BTC was worth 1000$ [and even less] and now they regret not getting into it. (@Oulay)
It is never too late to start using bitcoin. No one can predict the future price of bitcoin, but bitcoin has a lot of potential and with more users (=more demand), it is likely that the price will increase. You dont need to buy 1 whole bitcoin if it is too expensive. You can buy any smaller amount such as 0.5, 0.03, 0.001 btc at any time. The bitcoin community is open and welcomes new users, and people are happy to give help and advice about bitcoin.
(answered by @retprogramisto)
Q: Is Bitcoin legal? I heard it's illegal in some countries. Why?
A: Legality of bitcoin is based on every country of a person who uses it. For example, a country banned bitcoin, this means that using bitcoin is already not legal for this country. Bitcoin is also legal as long as it is supported or acknowledged by a country or there as long as it is not banned. (answered by @purple.thoughts)
Bitcoin is a currency, therefore it is irrational to ban it, just as it would be irrational to ban cash or USD. Some countries claim to have banned bitcoin, but even in these countries you can still use bitcoin, download and run bitcoin software, and buy and sell bitcoin peer-to-peer. If the legality of bitcoin concerns you, you can search "is bitcoin legal in [country]" in any search engine.
(answered by @retprogramisto)
Q. Don't people use Bitcoin for the black market or for illegal stuff?
A: Of course it is [used for black market or illegal stuff]. Any form of anything that can generate money is. More crime is funded by fiat than Bitcoin, it's a bit of a moot question. The government/IRS bought software to track Bitcoin and blockchain tech. Sure at some point the government is bound to use national security in the quest to regulate Bitcoin but to avoid Bitcoin because it is used in crime is like avoiding cash cause someone snorted cocaine with the bill. (answered by Walrus1)
Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
A: Bitcoins price depends on supply and demand, i.e. the price of bitcoin depends on how much people are willing to pay for it.
Because bitcoin is a deflationary currency, you cant simply print more money, if more people want to have it. Generation of new bitcoin requires electricity (=proof of work mining), which means it costs money to make new bitcoin. Additonally the block reward is halved every 4 years, which means miners generate less bitcoin as time goes on.
This means that the supply of bitcoin decreases over time (due to less bitcoin in circulation due to hodlers) and increased demand will increase the price of 1 bitcoin.
Price spikes may also happen suddenly due to increased demand in bitcoin and constant supply. Meaning, if a lot of people want to buy bitcoin and there is a limited number of bitcoin on sale, the price can increase rapidly.
This means that people who bought bitcoin at a lower price can earn profits, if they sell some of their bitcoin at the higher price. Or they can hold their bitcoin (hodl) which decreases circulating supply and therefore can increase bitcoin price.
You don't need to buy 1 whole bitcoin. You can also buy 0.5, 0.03, 0.0001 btc. The smallest unit of bitcoin is a satoshi and equals 0.00000001 btc.
(answered by @retprogramisto)
Q: If Bitcoin isn't bad, why do famous financial gurus like Warren Buffet warn us to stay away from it?
A: First and foremost, anyone who is a financial advisor like Warren Buffet could never advise the public to invest in an asset that isn't regulated by the SEC. He could be sued, or even jailed for giving such advice. The reason people like Warren and Bill don't advise investing into bitcoin is because they are beneficiaries of the current CENTRALIZED economic [fiat] system. They are among the richest people in the world! The system made them this way, so why would they want to change it? (answered by DAOfan)
Banks, gurus and governments want the world to stay as it is. They dont want to lose power, influence or profits to bitcoin. Therefore they spread FUD (fear, uncertainty and doubt) and false assumptions about bitcoin, to discourage people to use it.
Bitcoin can be liberation from financial institutions like banks and credit card companies. People can use bitcoin freely and anonymously like cash, without required trust in a third party (how can you know that your bank keeps your money safe? that it doesnt invest your money into causes you disagree with? that it cant be stolen or seized?).
Bitcoin can be a viable alternative to Paypal, banks and credit cards to buy online and in person, as you dont need to trust a financial institution with your money. With bitcoin, people can send money internationally to anyone with processing times as low as 10 minutes and fees as low as 50 cents. No monthly fees, personal information or long contracts required. Bitcoin puts the control back in your hands - if you protect your bitcoin private key, only you have control over your money and no one else can access it.
It is clear to see the benefits of bitcoin over traditional payment methods, and banks can see this too. Bitcoin is a competitor to banks and some banks see it as a threat, while other banks greet bitcoin and even integrate crypto trading into their offers.
That is why it is better to do your own research and read multiple sources, instead of naively believing "gurus" or "leaders". These people can have agendas and give misleading information to discourage people. Therefore as with any research look at a variety of sources and think critically about the information you read.
(answered by retprogramisto)
Q: How do I cash out Bitcoin?
A: You can pay for things like coffee or dinner easily with Bitcoin [at over 40,000 businesses that accept it worldwide]. More and more businesses are starting to accept Bitcoin. Additionally, you can exchange fiat cash on Bitcoin ATMs, which are readily becoming more available on a regular basis. You can also exchange many fiat currencies into Bitcoin (and other cryptocurrencies) at cryptocurrency exchanges. (@smileflowers)
There are also some Bitcoin debit card service available, where you can just load the account with Bitcoin and then use the card that they provide to shop anywhere that accepts credit card payments. (@coly20032003)
Q: Is Bitcoin safe?
A: The algorithms and technical solutions that underpin the foundation of Bitcoin are absolutely safe. But the answer to this question depends on you personally. Just ask yourself: Is your credit card safe? Is the Dollar, Euro or Yen safe? The water you drink, the air you breathe, is it safe? Are cars or planes safe? Don't get on the plane if you doubt its safety. The same is with Bitcoin. Only your faith in Bitcoin will give the answer whether it is safe or not. (ValeryO
Q: Who controls Bitcoin? [the answer could use further explanation]
A: Bitcoin is not controlled by a centralized organization. It is "controlled" by a network of people, such as: the people who hold them; the miners; the traders; the developers. It is the Bitcoin community as a whole that controls Bitcoin. (@coly20032003)
Q: Will Bitcoin make me rich? (asked by Walrus1 here)
A: There is no guarantee in any market and useful advice is "Dont invest more than you are prepared to lose". While there are good reasons for bitcoin to increase in value, nothing can be guaranteed.
Bitcoin offers many opportunities to earn money online - from trading, sale of goods or services or mining - and many people profit from bitcoin.
However, bitcoin is a currency and not a get-rich-quick scheme. You can definitely earn money with bitcoin, but you need to make effort. Check bitcointalk.org and reddit.com/r/bitcoin to learn how to earn with bitcoin.
(answered by retprogramisto)
Remember, you can post your own questions in this thread! If it's a popular question and receives an answer worthy of being included in the list, it will be added and the person who answered it (this could be you) will be merited.
Q. What is Bitcoin? Isn't it just made-up money?
A: Bitcoin is in some ways less of a made up money than the money the banks have conditioned us into believing is valid currency. Let me explain how, The main two problems with the Historic money systems is bank currencies/notes are manufactured/printed as required meaning banks can devalue your Bank note just by printing more and over circulating. The second main problem is bank notes state 'I promise to pay the bearer on demand the some of - Five pounds sterling' for example, this is supposed to link to a real commodities like Gold or silver and if we all wanted to cash our I O U's in at the same time would banks even have enough real commodities to cover this (I would not bank on it lol). Another simple way to look at these issues is banks that control 'current real money' are simply businesses and if banks go out of business your pieces of paper (e.g. bank notes) are worthless. Bitcoin solves these problems and is not manipulable like £, $, Euro etc.. is as the amount of Bitcoin has a predetermined amount that is hard coded into the source code. Another huge advantage the new money system Bitcoin has is the fat cats are not taking big 3rd party cuts on transactions especially international ones making Bitcoin already the preference for allot of people and business when completing international transfers. (@ScotlandPros)
Q: Is Bitcoin a scam? What about a Ponzi scheme?
A: Bitcoin isnt a scam or a ponzi scheme, it is a currency. The price can vary due to changes in supply and demand, but this doesnt affect bitcoins use as a currency to buy and sell products and services online and in person.
Ponzi schemes promise unrealistic rewards and rely on new investors to pay the profits of current investors, and in the end exit scam and leave the new investors with nothing.
This is not bitcoin. Bitcoin is in essence a software run by thousands of computers decentrally (and you access this network when you use a web wallet or desktop wallet). It is based on secure cryptography. Bitcoin isnt owned by one person and cant exit scam. Bitcoin will always be available as long as there are full nodes, miners and people who want to use it. And anyone can run a full node on their computer without high expenses or detailed technical knowledge.
Bitcoin is also deflationary, which means less bitcoin is generated per 4 years, which decreases new supply and keeps the price stable or increasing. This shows that bitcoin is planned for the long-term and will be around as long as we - the users - buy, sell, hodl and use bitcoin.
(answered by @retprogramisto)
Q: Isn't it too late to get into Bitcoin?
A: It's never too late to get into Bitcoin, people said this when 1BTC was worth 1000$ [and even less] and now they regret not getting into it. (@Oulay)
It is never too late to start using bitcoin. No one can predict the future price of bitcoin, but bitcoin has a lot of potential and with more users (=more demand), it is likely that the price will increase. You dont need to buy 1 whole bitcoin if it is too expensive. You can buy any smaller amount such as 0.5, 0.03, 0.001 btc at any time. The bitcoin community is open and welcomes new users, and people are happy to give help and advice about bitcoin.
(answered by @retprogramisto)
Q: Is Bitcoin legal? I heard it's illegal in some countries. Why?
A: Legality of bitcoin is based on every country of a person who uses it. For example, a country banned bitcoin, this means that using bitcoin is already not legal for this country. Bitcoin is also legal as long as it is supported or acknowledged by a country or there as long as it is not banned. (answered by @purple.thoughts)
Bitcoin is a currency, therefore it is irrational to ban it, just as it would be irrational to ban cash or USD. Some countries claim to have banned bitcoin, but even in these countries you can still use bitcoin, download and run bitcoin software, and buy and sell bitcoin peer-to-peer. If the legality of bitcoin concerns you, you can search "is bitcoin legal in [country]" in any search engine.
(answered by @retprogramisto)
Q. Don't people use Bitcoin for the black market or for illegal stuff?
A: Of course it is [used for black market or illegal stuff]. Any form of anything that can generate money is. More crime is funded by fiat than Bitcoin, it's a bit of a moot question. The government/IRS bought software to track Bitcoin and blockchain tech. Sure at some point the government is bound to use national security in the quest to regulate Bitcoin but to avoid Bitcoin because it is used in crime is like avoiding cash cause someone snorted cocaine with the bill. (answered by Walrus1)
Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
A: Bitcoins price depends on supply and demand, i.e. the price of bitcoin depends on how much people are willing to pay for it.
Because bitcoin is a deflationary currency, you cant simply print more money, if more people want to have it. Generation of new bitcoin requires electricity (=proof of work mining), which means it costs money to make new bitcoin. Additonally the block reward is halved every 4 years, which means miners generate less bitcoin as time goes on.
This means that the supply of bitcoin decreases over time (due to less bitcoin in circulation due to hodlers) and increased demand will increase the price of 1 bitcoin.
Price spikes may also happen suddenly due to increased demand in bitcoin and constant supply. Meaning, if a lot of people want to buy bitcoin and there is a limited number of bitcoin on sale, the price can increase rapidly.
This means that people who bought bitcoin at a lower price can earn profits, if they sell some of their bitcoin at the higher price. Or they can hold their bitcoin (hodl) which decreases circulating supply and therefore can increase bitcoin price.
You don't need to buy 1 whole bitcoin. You can also buy 0.5, 0.03, 0.0001 btc. The smallest unit of bitcoin is a satoshi and equals 0.00000001 btc.
(answered by @retprogramisto)
Q: If Bitcoin isn't bad, why do famous financial gurus like Warren Buffet warn us to stay away from it?
A: First and foremost, anyone who is a financial advisor like Warren Buffet could never advise the public to invest in an asset that isn't regulated by the SEC. He could be sued, or even jailed for giving such advice. The reason people like Warren and Bill don't advise investing into bitcoin is because they are beneficiaries of the current CENTRALIZED economic [fiat] system. They are among the richest people in the world! The system made them this way, so why would they want to change it? (answered by DAOfan)
Banks, gurus and governments want the world to stay as it is. They dont want to lose power, influence or profits to bitcoin. Therefore they spread FUD (fear, uncertainty and doubt) and false assumptions about bitcoin, to discourage people to use it.
Bitcoin can be liberation from financial institutions like banks and credit card companies. People can use bitcoin freely and anonymously like cash, without required trust in a third party (how can you know that your bank keeps your money safe? that it doesnt invest your money into causes you disagree with? that it cant be stolen or seized?).
Bitcoin can be a viable alternative to Paypal, banks and credit cards to buy online and in person, as you dont need to trust a financial institution with your money. With bitcoin, people can send money internationally to anyone with processing times as low as 10 minutes and fees as low as 50 cents. No monthly fees, personal information or long contracts required. Bitcoin puts the control back in your hands - if you protect your bitcoin private key, only you have control over your money and no one else can access it.
It is clear to see the benefits of bitcoin over traditional payment methods, and banks can see this too. Bitcoin is a competitor to banks and some banks see it as a threat, while other banks greet bitcoin and even integrate crypto trading into their offers.
That is why it is better to do your own research and read multiple sources, instead of naively believing "gurus" or "leaders". These people can have agendas and give misleading information to discourage people. Therefore as with any research look at a variety of sources and think critically about the information you read.
(answered by retprogramisto)
Q: How do I cash out Bitcoin?
A: You can pay for things like coffee or dinner easily with Bitcoin [at over 40,000 businesses that accept it worldwide]. More and more businesses are starting to accept Bitcoin. Additionally, you can exchange fiat cash on Bitcoin ATMs, which are readily becoming more available on a regular basis. You can also exchange many fiat currencies into Bitcoin (and other cryptocurrencies) at cryptocurrency exchanges. (@smileflowers)
There are also some Bitcoin debit card service available, where you can just load the account with Bitcoin and then use the card that they provide to shop anywhere that accepts credit card payments. (@coly20032003)
Q: Is Bitcoin safe?
A: The algorithms and technical solutions that underpin the foundation of Bitcoin are absolutely safe. But the answer to this question depends on you personally. Just ask yourself: Is your credit card safe? Is the Dollar, Euro or Yen safe? The water you drink, the air you breathe, is it safe? Are cars or planes safe? Don't get on the plane if you doubt its safety. The same is with Bitcoin. Only your faith in Bitcoin will give the answer whether it is safe or not. (ValeryO
Q: Who controls Bitcoin? [the answer could use further explanation]
A: Bitcoin is not controlled by a centralized organization. It is "controlled" by a network of people, such as: the people who hold them; the miners; the traders; the developers. It is the Bitcoin community as a whole that controls Bitcoin. (@coly20032003)
Q: Will Bitcoin make me rich? (asked by Walrus1 here)
A: There is no guarantee in any market and useful advice is "Dont invest more than you are prepared to lose". While there are good reasons for bitcoin to increase in value, nothing can be guaranteed.
Bitcoin offers many opportunities to earn money online - from trading, sale of goods or services or mining - and many people profit from bitcoin.
However, bitcoin is a currency and not a get-rich-quick scheme. You can definitely earn money with bitcoin, but you need to make effort. Check bitcointalk.org and reddit.com/r/bitcoin to learn how to earn with bitcoin.
(answered by retprogramisto)
Remember, you can post your own questions in this thread! If it's a popular question and receives an answer worthy of being included in the list, it will be added and the person who answered it (this could be you) will be merited.
February 28, 2018, 08:01:15 PM
Disclaimer: Although not all newbie questions are based on fud, a majority of them are. I wanted to consolidate a lot of these questions into one [managed/self-moderated] thread to help you arm yourselves with answers to the most common questions that non-bitcoiners have regarding the cryptocurrency.
Quote
FUD | noun
Pronunciation: /fəd/
Pronunciation: /fəd/
- Fear, uncertainty and doubt (often shortened to FUD) is a disinformation strategy used in sales, marketing, public relations, talk radio, politics, religious organizations, and propaganda. FUD is generally a strategy to influence perception by disseminating negative and dubious or false information and a manifestation of the appeal to fear.
Source: Wikipedia
Questions like "Is Bitcoin illegal?", "Is Bitcoin a scam or a Ponzi scheme?" and "Why is Bitcoin so expensive?" are common amongst people (usually friends, family, and coworkers) who have no experience with Bitcoin. These questions are usually negative in nature, mainly due to the position that mainstream media puts Bitcoin (and other alternative cryptocurrencies) into. Rather than do their own research about Bitcoin, these people tend to listen to the fud and deter themselves from learning more about it.
You'll often hear them say things like "I've heard about Bitcoin a long time ago, but I never got into it" or "Don't hackers use Bitcoin to demand ransoms?" or some other fud-fueled question.
Let's all do our parts to help educate them in simple terms. This topic will provide you answers with (hopefully) all of the questions that you receive by people who have no idea what it is. Here's how it will work:
- Answer a question (or as many as you like) from the list in the next post below. Give me your best answer, and if it helps the overall greater good of Bitcoin, your answer will be quoted into the answeri in the Questions section, and you will be awarded with a meritii.
- Keep it simple. Try to keep the answers non-technical. People that don't care about Bitcoin tend not to want to because they don't understand it. Why? More than likely because it's all just "computer speak" to them.
- Ask a question. Do you commonly get asked the same thing (that isn't covered below)? Post your question, and whoever has the best answer (including yourself, if you choose to answer the question) will be awarded a merit, and their answer will be added to the listii.
- Do not shitpost. One-sentence answers (very few exceptions will be made) will be purged, as to help eliminate spam (and obvious sigspam). Yes, I will delete your post if it's obvious that you're shitposting solely to increase your post count for your signature campaign.
Remember, these questions are for complete Bitcoin newbies or people who have no idea what Bitcoin is. Please try and avoid submitting technical or more knowledgable questions like "What is the genesis block?" or "Who is Satoshi Nakamoto?". Let's focus on helping our friends and family get their feet wet first and then change their overall negative perspective about Bitcoin first.
iWhether your answer gets added will be under my sole discretion. If you don't agree with me, start your own thread. | iiMerits will be distributed until I run out of sMerit to award.
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