8 Best Bitcoin Questions And Their Answers You Must Know

bitcoin questions

People who ‘live’ on the internet, May heard about bitcoin. Bitcoin is a digital currency which uses electronic mode to transfer. If going into more detail, it can be declared as a type of cryptocurrency that simply means the currency with high security and encryption.

In this post, we are going to clear and identify the most common bitcoin questions

What is bitcoin?

Bitcoin is actually a software network which has two meanings. When capitalized as Bitcoin it refers to network or software while when not capitalized bitcoin refers to digital currency.

The price of bitcoin fluctuates depending on the user’s payment processing. It can be low as pennies or as high as several dollars.

Bitcoin Questions

  1. What are specialties of bitcoin?

Bitcoins is secure, anonymous and peer to peer currency that runs on the system and allows to pay and receive bitcoins without any third party.

But the bitcoin transactions are recorded in public ledger that is known as bitcoin blockchain, the information about the blockchain are publically accessible on blockchain.info and cannot be edited or deleted.

These records work as transaction records which are also configured to be non-duplicable and secure.

  1. Is using bitcoin is anonymous?

The anonymity of Bitcoins is a myth. It is because the most of the bitcoin service providers have started using KYC/AML regulations to check identity.

These norms and regulations need users to submit proof of identity and the proof of residence. And nowadays it is a fairly easier task to trace bitcoins. It is because of the online transactions that are viewable publically.

  1. Who was the developer of Bitcoin?

Satoshi Nakamoto was the man behind the idea of Bitcoin, he declared it peer to peer crypto currency in May 2008 via sharing a white paper.

He is an anonymous figure and he told anonymously about the working of this cryptocurrency. ‘bitcoins’ are the digital currency that can be mined by computer software and can be transferred directly amongst the users without any interruption of the third party.

No one knows who actually Satoshi Nakamoto is, some believe he was a selfless activist of financial revolution while some believe that it can be a name of collective identities.

In another opinion, an Australian businessman Craig Wright has introduced himself publically as the creator of Bitcoin i.e. Satoshi Nakamoto. Mr. Wright has also provided many technical pieces of evidence to back up his claim. Many of the Bitcoin foundation members have backed up his claim through their blogs. But still there are many people who asked Mr. Wright to go further to prove his identity.

  1. What is decentralized currency?

While searching answers of any interesting bitcoin questions, one best one is about decentralization. Bitcoin is a decentralized currency that simply means that no individual, government or group holds any authority over it. This simply makes it accessible throughout the world.

Due to lesser control over it, many countries are understandably wary of bitcoin but some countries like japan have started to recognize it as a currency.

  1. How to use bitcoin?

Bitcoin is used as money which can be used for general spending. People also use them for investment purposes while other prefers to use them as a way to make international transactions. This answers one of the typical bitcoin questions that people often ask about bitcoins.

bitcoin-wallets

Bitcoins are kept electronically in bitcoin wallets. Bitcoin wallets are of several types like desktop wallet, web-based wallet, mobile wallet and hardware wallet. You can have more than one bitcoin wallet and bitcoin addresses.

  1. How to acquire bitcoin?

There are three main methods of acquiring bitcoins:

  • Bitcoin mining

Bitcoin mining is a profitable and cost effective way to get bitcoins. In this method, one needs to buy bitcoin mining equipment and paying their associated costs like rental charges, electricity bills, and cooling costs.

  • Buy Bitcoins

The second appropriate method is to buy bitcoins through online exchanges. These exchanges can be globally or specific country oriented.

  • Work for bitcoin

With the websites like Coinality and XBTFreelancer pay people with bitcoins instead of cash currencies.

  1. What many people use bitcoin?

It is a really hard task to gather the information of exact number of people who use bitcoin. One of the most effective ways to calculate the bitcoin users is the number of bitcoin wallets.

Even, this is another fact that bitcoin users may have more than one wallet but this is an indication that bitcoin users are increasing horrifyingly throughout the world.

Another way to calculate the number of bitcoin users is to calculate the bitcoin transactions. With the number of transactions of the same addresses, it becomes helpful to find out the approximate number of bitcoin users.

Final Words:

Bitcoin is cool and awesome technology for money exchange with promising security and reliable service like blockchain. Blockchain has been turned out as best thing as it stores and records data and accessed publically but cannot be deleted. This is why many of the major companies nowadays are taking interest in the blockchain technology and bitcoin.

We hope all your bitcoin questions have come to an end with this post. If you already have used bitcoin then please share your thoughts on this system in the comment section.

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Tapas Pal

Tapas pal is the founder of layerpoint.com and he is an avid Internet geek enthusiast and writer has deep interest in technology, Digital Marketing and love tools that increase human productivity.