Re: Common Q&A about Bitcoin:Non-Technical Edition (Earn Merits)
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.