The following are all the questions and answers that you want to know about BitCoin
1.What is Bitcoin?
Bitcoin is a decentralized, peer-to-peer electronic payment system that is not regulated by a central authority such as The Federal Reserve or The Department of the Treasury U.S. Bitcoin can be called a digital currency or a cryptocurrency, but most investors currently do not pay Bitcoin as a currency. Instead, they use Bitcoin as a speculative investment and hope to make profits through Bitcoin. Investors may get a lot of profits (may also cause great losses).
2.What does Bitcoin support?
The core principle of Bitcoin is "blockchain". Each block corresponds to a bill. Linking all blocks is blockchain. Any transaction information and transfer records are recorded in the blockchain. It should be noted that blockchain exists throughout Internet. All miners can see that everyone has a copy of entire chain, which makes it impossible to be manipulated by single individuals.
3.Who controls Bitcoin?
Bitcoin is decentralized, which means that no one authority or central authority is in charge of Bitcoin. Bitcoin was created in 2009 by a person using pseudonym “Nakamoto Satoshi”, but no one knows his real identity, and this person or group has no control over Bitcoin.
4.How to evaluate the value of Bitcoin?
Bitcoin's value fluctuations are based on buying and selling, which is the same as stock, but there are hot debates about what Bitcoin's price represents. In theory, the value of Bitcoin should reflect investor’s confidence in Bitcoin as a technology. However, in reality, mostof investors regard Bitcoin as a commodity because of its limited supply. Nakamoto eventually limited Bitcoin's total supply to 21 millions. At present, it has generated 16.7 millions. Every time a miner uploads a new block to blockchain, he can receive a small amount of new coins as a reward.
5.Is Bitcoin a scam?
Bitcoin is not a scam. Bitcoin is a legal technology. The question is how useful and valuable it can become.
6.Is there a physical currency called Bitcoin?
No. You can't touch Bitcoin because it's actually a You may have seen bitcoin-like coins on Internet, but those are souvenirs and cannot be converted into actual bitcoins.
7.Is Bitcoin as tangible as gold?
Bitcoin has a lot of similarities with gold, that is what investors think it can do well. You can have Bitcoin by downloading a series of digital codes to something like a USB flash drive. But you cannot touch Bitcoin like gold, and Bitcoin is not sparkling.
8.Is the value of Bitcoin entirely determined by the free market?
It’s true in most of cases.The supply of BitCoin is limited, so price of BitCoin goes up with the rising of demand. Technological innovation also contributes to the value of Bitcoin. Bitcoin was still a novelty when it was created in 2009, but now the market makes it worth more money.
9.Bitcoin does not exist in the real world. How does it get a monetary value?
In fact, Bitcoin exists in the real world，it is actually a software likes the operating system of your mobile phone or computer. Obviously, some kinds of software are valuable
10.If Bitcoinis virtual, can it be copied?
Yes, of course. All of Bitcoin transactions are stored on public ledger, which is also known as blockchain. You can copy blockchain, but this is just a record. Therefore, you cannot change the distribution of Bitcoin.
11.Is Bitcoin the legal currency?
Not yet in the United States. For example, businessmen must accept the US dollar as the legal currencyin the United States. The U.S. government allows Bitcoin transactions, not all the car dealers or restaurants are reacquired to accept it, but they must accept dollar. At the same time, Japan, Australia and other countries have officially recognized Bitcoin as a legal currency.
12.What is the collateral behind Bitcoin?
There is no any collateralbehind Bitcoin. Bitcoin blockchain records all transaction history of Bitcoin and validates it through proofreading. No other tangible assets exits behind Bitcoin, like cars as collateral for car loans, or houses as collateral for mortgages.
13.Who follows each Bitcoin?
All of miners who maintain the system.
14.How to purchase and sell Bitcoin?
There are many convenient trading platforms now, the most popular mainstream BitCoin trading platform is BtcTrade.im
15.What are you actually buying?
What you actually buy is an electronic key, which is a series of numbers and letters that give you the sole ownership of Bitcoin's blockchain. You can transfer this asset to Bitcoin at any market pricewith minus transaction fees.
16.Can Bitcoin be purchased in an ordinary brokerage account?
At present, traditional brokerage companies such as Vanguard, Fidelity and Schwab cannot. But securities related to Bitcoin values, such as Bitcoin Investment Trust, can be purchased through traditional brokerage companies. But this does not make it more secure than Bitcoin. In fact, they are mostly volatile and do not track Bitcoin prices well.
17.How much money do you need to start?
It doesn't need a lot. You can buy Bitcoin, Litecoin or Ethereum worth only $1 at BtcTrade International Station
18.CanI only buy a part of a Bitcoin?
Yes. A bitcoin can be divided into 8 decimal places, or 0.00000001 B This is equivalent to one millionth bitcoin. Such a unit is called Nakamoto Satoshi, in order to pay tribute to the founder of Bitcoin. If a Bitcoin value is 15,000 U.S. dollars, the value of a Satoshi Nakamoto will be 0.15 cents.
19.CanBitcoin transaction trace back to you?
Yes. Anyone who purchases or sells Bitcoin on trading platforms must provide their personal information for transactions. If the law enforcement agency needs to know any information about you, the trading platform will have to provide information required by the law. But your personal information will not be part of blockchain, and will not be seen by miners who maintain blockchain. If you conduct a peer-to-peer private transaction with another person, that person may know you, but no one else can see transaction information.
20.Where will my money go when I buya cryptocurrency?
When you buy Bitcoin or any other cryptocurrency that someone sells it to you, your money is mostly given to seller. Trading platforms charge a high transaction fee . Bitcoin miners also charge a little fee for maintaining the network.
21.Is Bitcoin real money?
Can I deposit it whenever Iwant? Bitcoin is valuable and can be converted into an ordinary currency or purchased from sellers who accept Bitcoin. So, in this sense, Bitcoin is real money. To convert Bitcoin to cash, you need to sell it to someone in exchange for dollars or other currencies. Trading Bitcoin platforms often in congestion, that lead people unable to access their accounts or make transactions for a period of time, especially when Bitcoin prices large fluctuates. Don’t think that you can sell Bitcoin at any time.
22.Apart from scarcity, what is the value of Bitcoin?
Based on how much buyers and sellers think Bitcoin is worth. In other words, it is largely affected by psychological factors.
23.How is Bitcoin stolen?
The Bitcoin blockchain itself is safe, but if thieves can access your account and transfer your bitcoins to accounts under their control. Once Bitcoin is transferred, it cannot be regained. Thieves usually access other people's accounts by stealing login and password information. Therefore, it is important to take all possible measures to protect BitCoin accounts, including mobile phone authentication twice. You can also have a "private key", which is the third layer of protection.
24.How does Bitcoin generate revenue?
Miners make money through creating Bitcoins (paid in BitCoins), and pay for the time and cost of electricity for computers during the mining procedure. They also make little transaction fees from Bitcoin users. Bitcoin does not generate revenue by itself. It is regarded as a commodity like gold that has market value but does not generate economic activity. When the value of Bitcoin rises, Bitcoin will generate profits. When the value of Bitcoin falls, it will also cause losses.
25.Is Bitcoin worth to trade on the black market?
Yes, it is. Because Bitcoin transfers cannot be traced, Bitcoin is often used to purchase drugs or finance some criminal activities. However Bitcoin has legitimate uses that can be paid to anyone who accepts Bitcoin. Some people think that Bitcoin is a means of storing
26.What is the difference between Bitcoin and other cryptocurrencies?
It depends on what currency you want to know. Some cryptocurrencies, such as Bitcoin cash, Bitcoin gold, or Litecoin, come from the difference of the code of main Bitcoin. While some cryptocurrencies have their own blockchain, such as Ethereum or Ripples (XRP).
27.Why does Bitcoin price fluctuate fiercely?
Because a lot of money goes into a relatively small market, in addition, trading bitcoins is more difficult and complex than trading stocks or commodities.
28.To what extent the fluctuation of BitCoin is caused by the impact of whales on market price, and to what extent it is due to new investors or external investors? The people who hold a lot of bitcoins are often called whale. Bloomberg reported that about 40% of bitcoins are held by nearly 1,000 people. Many people think that these whales collusion affects the price of Bitcoin, but there is no evidence. Bitcoin blockchain trading is public. The blockchain shows that large transactions occur every day, but these transactions are not enough to generate the huge fluctuations we have seen.
29.Is there a Bitcoin bubble?
No one can be sure. It is no doubt that the surge of the price in recent months is like a bubble. Many buyers recently want to own Bitcoin, not because of its intrinsic value, but simply because they thought Bitcoin would appreciate. This is speculation that often leads to bubbles. But it is possible that Bitcoin is a real innovation that will help change the financial system. It is worth mentioning that the inventionof Internet led to the Internet bubble of the 1990s, but now Internet still exists, and some companies that collapsed at that time are currently ranked among the most valuable companies in the world.
30.If the Bitcoin bubble really bursts, is all cryptocurrencies plummeting or only Bitcoin?
Although cryptographic currency tends to move in one direction, they are not as closely related as they used to be. Of course, if Bitcoin has a big shock, it will usually have a knock-on effect. If bitcoin drops by 90%, it is likely that other cryptocurrencies will follow. The real test is which cryptocurrency can survive the plunge in prices, just as Amazon, eBay, and Priceline survived the burst of the Internet bubble.
31.Some people have threatened that Bitcoin will rise up to $1 million, or Bitcoin will plunge and become worthless. Which is more likely to occur?
Neither of these situations is possible, nor both of them is possible. It is probably that BitCoin will slump after rising to $1 million. No one knows what level Bitcoin will archieve and perhaps BitCoin has reached its peak. But BitCoin is unlikely to become worthless unless the occurrence of catastrophic accidents ( For example, a fatal flaw is found in the codes of BitCoin.).
32.What is the risk?
The demand of Bitcoin may be destroyed, and the price is plunged as a result. It may be a technical issue, regulatory intervention, or a negative image due to the huge electricity consumption of BitCoin. It is also be something that cannot be expected completely.
33.Should I use Bitcoin "Hardware wallet"? That’s a good idea.
34.How can we find Bitcoin companies if they do not reply to emails.
For many loyal supporters of Bitcoin, a big benefit of Bitcoin is the decentralization—the lack of supervision by central authorities. In reality, trading platforms such as BtcTrade International are actually beneficial for responding to problematic customers, but most of these companies are emerging companies. In order to make these company better, you need to give them more and more pressure.
35.Is there a customer service via mobile phone?
This is a novel idea. So far, if there is any problems with your account security, you are likely to only receive a call from BtcTrade International Customer Service.
36.Does the government ignore this?
Maybe not. To some extent, the government has stepped in, such as the U.S. government allowing Bitcoin futures trading. Bitcoin will become a more integral part of the financial system and Bitcoin will be subject to more regulation. But this is not a bad thing. Some Bitcoin investors believe that if the government monitors more Bitcoin, Bitcoin may legalize and expand its application.
37.Will cryptocurrencies replace U.S. dollar and other currencies?
Cryptocurrencies may gain share in the entire currency market, especially if the U.S. government explicitly authorizes some certain cryptocurrencies and allows people to use them to pay taxes. But even it occurs, it is too hard for cryptocurrencies to replace U.S. dollar - the most trusted currency in the world.
38.Can cryptocurrencies destroy the global market?
No, they won’t. A recent analysis report released by Capital Economicsmacro shows that even if bitcoin collapses, the overall financial market will not be greatly affected. Although Bitcoin has attracted global attention, the value of Bitcoin's market is still small, and cryptocurrencies have not been incorporated into the real economy or banking system. If Bitcoin is all out - the price falls to zero - is equivalent to a 0.6% correction in the stock market. Some families’ expenses may be affected, and some people may suffer a loss of millions of dollars. But many people who hold a lot of Bitcoin are early investors, and they bought Bitcoin at very low price.
39.What products or services can I purchase with cryptocurrencies?
In spite of being a cryptocurrency, the best way to use Bitcoin is not to buy things. Investors may store bitcoin as a storerage of value.
If you have to buy something in Bitcoin, you can use Bitcoin to buy things on some online platforms such as Zynga, Overstock.com, Newegg.com, Expedia.com, and Microsoft. If you want to book a trip, CheapAir.com accepts cryptocurrency payments. You can buy gift cards on the eGifter website too.
You can also use Bitcoin to buy more expensive things, such as space travel company Virgin Galactic will accept customers to pay for space travel in bitcoin. Reeds Jewelers, one of the largest jewellery chain stores in the United States, also accepts bitcoin payments.
40.Can I use Bitcoin at HomeDepot, a self-decoration retailer?
No, you can not use directly. However Home Depot is slowly keeping pace with other retailers, most of which are e-commerce: Overstock, a well-known shopping e-commerce vendor in the United States; Microsoft’s Xbox store, PayPal, and Square , U.S. mobile payment company , accept bitcoin payments.
41.Will Bitcoin become a currency in ordinary retail stores?
It depends on what the retailers If consumers eventually find that Bitcoin is cheaper and more convenient to use than current payment methods, the retailersmay willing to accept in order to gain a competitive advantage. If bitcoin transaction fees are cheaper than credit cards, retailers may even encourage customers to pay with bitcoins. However, before bitcoin prices become more stable, it seems unlikely that Bitcoin will be used widely.
42.Is there any reason thata typical customer would prefer to use cryptocurrencies instead of credit cards?
There is no reason for this till now , unless you want to be anonymous. However, Bitcoin can indeed guarantee the security of anonymous and electronic transactions.
43.What proportion of global economic activity is carried out using cryptocurrencies?
Very small. But Bitcoin is financing a large part of criminal activities.
44.How do you track different cryptocurrencies? Is there a quotation machine?
Yes. Yahoo! Finance currently offers comprehensive, free tracking tools for over 100 cryptocurrencies, each with a quotation machine. Most people don't even realize that there are so many cryptocurrencies.
45.In terms of investment, is cryptocurrency more like stock or currency?
This is complicated because Bitcoin and other cryptocurrencies have the same characteristics as stocks or currencies. People often compare cryptocurrency to the third type - gold. This is why you sometimes hear people call cryptocurrencies "digital assets" or "digital gold."
46.Is Bitcoin ETF (Exchange Traded Fund) possible?
Maybe. The U.S. government recently allowed Bitcoin futures trading, which may be a precursor to the listing of ETFs on major exchanges. Bitcoin ETF must be approved by the U.S. Securities and Exchange Commission. This may be a year or even longer.
47.Why is there a huge difference in the value of cryptocurrency trade?
First, different cryptocurrencies trade according to their own dynamics. The number of unfinished cryptocurrencies, their use, and their operating rules are different. When bitcoin fluctuations occur fiercely, there will be spillover effectsand other cryptocurrencies will also fluctuate. When cryptocurrency matures, this effect has diminished.
Another problem in all kinds of exchanges that there is also a difference in transaction price of the same cryptocurrency – mainly in Bitcoin market. This is mainly in Bitcoin market because the cost of arbitrage is relatively high—buying assets on low-priced trading platforms and selling on high-priced trading platforms. As long as most of trading platforms have relatively low liquidity and high transaction fees, these differences will continue.
48.Does Bitcoin need to report to the IRS?
The IRS considers bitcoin as an asset, like property or stock. If you trade Bitcoin, it's the same as you are buying or selling stocks. Any related gains or losses are subject to the capital gain tax laws.
49.May I put retirement savings into cryptocurrency?
Can you suffer from if all of money loses? If not, stay away from cryptocurrencies.
50.If I don't put 5% of my retirement savings into the cryptocurrency, will it be regrettable?
If you feel that it is OK to invest a small part of your savings in high-risk products, let’s do it. However, unless you can afford to lose all of this money, don't do it.
51.How can I access cryptocurrencies without actually buying cryptocurrencies?
Investors can trade Bitcoin on Bitcoin derivatives trading platform as Ledgerx, and also trade Bitcoin futures on the Chicago Board Options Futures Exchange (CBOE) and the Chicago Mercantile Exchange (CME). In CBOE, a Bitcoin contract represents the price of a Bitcoin. At the CME, a Bitcoin contract represents the price of 5 Bitcoins. Both CBOE and CME are cash settled.
52.How does the collapse of Bitcoin affect traditional investment?
Who says Bitcoin will plunge? If you fear that Bitcoin will plummet, the good news is: Capital Economicsreport shows that Bitcoin does not seem to be associated with other risky assets (such as stocks). Despite the slowdown in stock market in recent weeks, Bitcoin continues to rise. As mentioned before, bitcoin is usually compared with gold, but it is clear that bitcoin is not a "safe haven" asset. Although the price of gold dropped last week, cryptocurrency price continued rising. As Capital Economics said, Bitcoin is "its own world".
53.Why do founder of Pioneer Group Jack Bogle and CEO of JPMorgan Jamie Dimon tell investors to stay away from Bitcoin?
Because they believe that Bitcoin has no intrinsic value, the increase in Bitcoin prices is only because buyers believe that people will buy Bitcoin at a higher price than they currently pay. In their view is an expectation that Bitcoin will collapse on a certain day and investors will lose most of their investment.
54.How do banks view Bitcoin? A friend? An enemy? A partner?
The bank is not yet a Bitcoin fan. JP Morgan is hostile to Bitcoin. Citibank is skeptical. Goldman is curious. But most of all big banks have brokerage offices, which are members of Bitcoin exchanges that are currently trading bitcoin futures. These futures contracts eventually brought Bitcoin to Wall Street. But it takes time for Bitcoin to win the trust of Wall Street brokers.In prior, the transaction volume of Bitcoin futures contracts would be very low, as most transactions occurred between retail investors rather than institutional investors.
55.Is there any listed companies that trade cryptocurrency?
No one is well-known in the United States, perhaps abroad. However, more and more listed companies have added "blockchains" to their names and claimed to invest in blockchain technology, mining operations and certain cryptocurrencies that led to stock prices rising sharply. On-Lineplc is a company listed on the London Stock Exchange (LSE). The company recently added the term "blockchain" to its company name, which has caused the market value of it to quadruple overnight. In the future, there may be a large Wall Street brokerage listed company becoming a Bitcoin futures trader, but it has not yet occurred.
56.How does Bitcoin affect the ability of the state to collect income tax?
If Bitcoin becomes a huge gray or black underground of economy where people do not report income, the government will have the incentive to ban and limit the use of Bitcoin.
57.Is it possible that all the money invested will disappear due to viruses or hacking?
When designing the Bitcoin network itself, it is unlikely that is possible.
The weakness of Bitcoin is in the level of personal transactions. For example, three years ago, when the largest Bitcoin exchange platform in the world, MtGox, declared that it went bankrupt by hacking; a South Korea Bitcoin exchange Youbit announced in December 19th , 2017 that it was "hacked" and declared bankruptcy itself. The specific bankruptcy liquidation procedure announced by Youbit was that the assets deposited by user before 3:00 a.m. on December 19th would be refunded at a rate of 75% according to losses suffered by hackers. The assets deposited after 3:00 would be returned 100% to user.
58.Will blockchain disappear?
If all copies of blockchain are deleted, it is not possible that the entire blockchain will disappear. However, some blockchains may disappear due to invalid or blockchain design. For proofof work of Bitcoin, miners rush to process transactions to win new bitcoins and transaction fees. Regulations require everyone to follow the longest blockchain
59.Will Bitcoin supply increase when reaching the top limit of 21 millions Bitcoin occurs?
Maybe. If at least 51% of bitcoin miners agree to amend the rules. There is one concern that after the last bitcoin was dug up, the miners who maintain network withdrew because they can only earn a small amount of money from transaction fees, which may not be worthwhile for them. Buyers and sellers also have a say, because whether they are willing to pay depends on them. To some extent, the Bitcoin market will evolve into any other market that involves producers, consumers, buyers and sellers, and middlemen.
It is not yet in a hurry to determine. Because the miners are expected to mine the last bitcoin in 2140, in next 123 years.
60.If I need money urgently, is it easy to convert cryptocurrency into cash?
It's not as easy as you think. The liquidity of Bitcoin is not like other investments, partly because settlement may take more than a week. If you do not get close to your account you can not sell it. If there is an interruption in the panic selling, some Bitcoin holders may not be able to sell for a long time, which will cause Bitcoin holders to suffer even bigger losses when prices fall.
61.Will banking adopt Bitcoin in their business?
Or are they more likely to develop a new cryptocurrency together? Banks will do things that are in their interest. There is currently no large, liquid market to trade cryptocurrency. The new Bitcoin futures may be large enough for institutional investment. At this point, big banks may gradually dominate the Bitcoin market and other cryptocurrency markets
If banking industry wants to develop its own cryptocurrency such as Ethereum and smart-based contracts, it may make sense. It will allow them to develop and control Token Issuance Finance (ICO) procedures that may be supervised by the U.S. Securities and Exchange Commission. This is only a guess, at least a few years after.
62.How can we include cryptocurrencies in our 401(k) pension plan?
It is still a while before the implementation of 401(k) pension plan finance company allows the use of cryptocurrencies. There is currently no mainstream mutual fund or ETF allowing such investments.
63.Will there be another cryptocurrency to replace Bitcoin?
Yes, it depends on how you define "replace". Some Bitcoin trading platform services continue to be interrupted, allowing some Bitcoin miners to begin handling these matters themselves early in this year. On August 1st, 2017, a new type of blockchain asset was born based on the original chain of Bitcoin, which is Bitcoin cash. Currently, Bitcoin cash is the third largest cryptocurrency by market value. Every month, there will be other new cryptocurrencies entering the market. They may not be able to "replace" Bitcoin, but they do threaten the dominance of Bitcoin.
At present, Bitcoin is the only cryptocurrency that launch futures contract, or it may be the first cryptocurrency to launch ETFs on major exchanges. If the Bitcoin network does not keep up with Bitcoin fanaticism, users can choose from hundreds of cryptocurrencies, such as Ethereum, Ripple, Litecoin and Bitcoin cash.
64.How many people are trading Bitcoin?
Which market does Bitcoin market open? There is currently no way to determine how many people trade Bitcoin at any given time on the global trading platforms. But we know that: Bitcoin is primarily traded in the West, but most of transactions take place in China. Along with Bitcoin becomes more popular, the number of dollar accounts is also increasing.
65.How do you use US dollarsto buy other cryptocurrencies the same as buying Bitcoins?
It depends on what type of cryptocurrencies trade on exchange and how they accept the payment - using US dollars, RMB or Bitcoin.
66.How to mine Bitcoin?
By buying expensive ASIC equipment or downloading a mining application on a traditional computer, this is a very slow way to mine Bitcoin today.
Every time, the Bitcoin system generates a random code on the system nodes. All computers on Internet can search for this code. Whoever finds the code will generate a block and then get a bitcoin. The process is what people often call mining. Calculating this random code requires a lot of GPU computing, so the miners purchase massive graphics cards for faster bitcoin gains.
67.Why need to use GPU for mining Bitcoin?
When Bitcoin was created in 2009, miners quickly discovered that GPU (graphics processor) was much more efficient than CPU (central processing unit) in a computer. Today, miners use ASIC mining to mine.
68.I have a very fast computer and I want to mine Bitcoin and other cryptocurrencies. How can I do it?
You may have a very fast computer, but the processor must be the best for Bitcoin, otherwise, Bitcoin that you mine is not enough for you paying electricity cost. A powerful processor called ASIC sells for thousands of dollars and is tailored to a specific cryptocurrency, so it is called a "miner." But if you are determined to use your computer to mine Bitcoin, there are several mining software options for you.
69.Will blockchain data grow indefinitely?
As long as Bitcoin exists, it will. Each transaction increases to the accumulated Bitcoin ledger.
70.If all bitcoins were mined, how would miners get paid?
They will be paid through transaction fees, which are determined by supply and demand. There is a theoretical upper limit on transaction fees. Some people are worried that if miners are not properly compensated, the Bitcoin network will become insecure. This fear is reasonable. It may happen before the last bitcoin is mined because the time mining a single Bitcoin is getting longer and longer. It means that the harvest of miners may not be enough for paying electricity costs because mining a Bitcoin requires more and more resources.
71.What is the proportion of Bitcoin in circulation today?
Of all the 21 million Bitcoins, about 16.74 million bitcoins (or 80%) are in circulation, and the remaining parts are still to be mined by miners.
72.What is the price of Bitcoin in next 10 years?
When we know how to predict the future, we will give you a reply. But here is a possibility: the technology behind the cryptocurrency may still exist in some form for a long time