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.
I didn't even get past your first answer, as you've blatantly copied and pasted the definition of bitcoin from Wikipedia verbatim. This defeats the whole purpose of this thread. While I appreciate that you took the time to google for the answer, you failed to realize that I was looking for answers in laymen's terms, such as if you were answering the question for a friend. How about you re-post your answers that you've taken the time to write yourself, rather than copying and pasting, and I'll give you another shot?
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?
While I do appreciate this addition to the thread, I have never been asked this by anyone that I'm trying to introduce Bitcoin to. I do agree with you, however, that the definition of 'Airdrops' has taken a weird turn some point throughout the past year. I, myself, don't participate in airdrops, so I never took the time to research them fully. I do imagine, however, that this question will start to arise more and more in the coming future of cryptocurrency, so thank you for the links; they're great reference points to get started.
Q: Isn't it too late to get into Bitcoin?
It's never too late to get into Bitcoin, people said this when 1BTC was worth 1000$ and now they regret not getting into it.This is similar to what I tell people when they ask me this very same question, but I usually answer with more details about things that they understand. For example, "Saying that if it's too late to get into Bitcoin is like saying that it's too late to start using the internet." or something to that effect. I'm adding your answer as the first part of the answer to the question, but I'd expect some more from others, as well.
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 fractions of it which are called Satoshis.I'd prefer you amend your answer with an example, such as being able to buy X amount of bitcoin at a time. Can you do this so I can add your answer?
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.
I guess this was kind of a loaded question, without getting too technical. But the first thing that someone would ask me if I gave them this answer is "That's cool. But what's a private key?" Can you add a brief explanation of public keys and private keys, without getting too technical?
Q: Who controls Bitcoin?
No one controls bitcoin, it's a decentralized cryptocurrency and its price depends on supply and demand.Again, just a bit more detail, such as comparisons to the stock market, which most people understand. Or at least have heard of.
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
Thank you, much appreciated!
Overall, I'm going to merit you because you took the time to answer the questions, and your answers are obviously yours, and not copied and pasted, but I'd appreciate if you could embellish them just a bit more!