Frequently Asked Bitcoin Questions
If you have basic bitcoin question for us or you are just curious about something bitcoin related, this page might help you get your answers. Feel free contacting us if your questions are not answered below.
What are bitcoin?
A Bitcoin is a digital currency that does not use coins and paper money. With a world that has gone almost entirely digital Bitcoins may be as common in the future as VoIP calls and email.
What Is So Special About The Bitcoin System?
Transactions can be conducted anonymously using the Bitcoin system. No one knows any information about the sender or recipient of any Bitcoin transaction.
How Does A Public Listing Make Things Anonymous?
The public listing allows a Bitcoin transaction to be anonymous because the only information that is shown is the amount transferred and the transaction ID. Bitcoin users are in the system anonymously since they don’t have to give personal information in order to use this currency. This is safer and more secure than using, for example, a PayPal card which does require a user to give out personal information.
How Do I Acquire Bitcoins?
It is easy to obtain and use Bitcoins. Ways to get them include:
- Use LocalBitcoins.com to exchange USD for Bitcoins
- Allowing others to pay for services using Bitcoins
How Do You Spend A Bitcoin?
Spending Bitcoins is not hard to do. They can be sent between individuals or used to purchase items or make a donation to a non-profit organization like:
• P2P Foundation
• Operation Anonymous
• Free Software Foundation
Who Developed The Idea Of Bitcoins?
Satoshi Nakamoto first developed the idea of Bitcoins. This anonymous individual is reportedly a resident of Japan, though his email ID states he is from Germany. No Bitcoin software is available in Japanese, contributing to the mystery of Nakamoto, who in 2009 developed both the Bitcoin itself and the software it requires. The next year he simply disappeared.
What Is Double Spending?
Digital data can be copied and this is what leads to people being able to make pirated copies of movies. The same kind of thing could happen with Bitcoins because dishonest users will want to copy the Bitcoins they already have. Satoshi made sure that this would not be a problem by creating a public list of every transaction made using Bitcoins. Anytime a new Bitcoin transaction takes place this list is checked to ensure the Bitcoin has not already been used. This prevents anyone from being able to copy their Bitcoins. This idea is simple but it is one that works to protect Bitcoin values.
How Do You Use Bitcoins Then?
Bitcoins are stored in a digital version of a wallet. This wallet can be kept online or on a user’s computer and will remain secure. Users can have an unlimited number of Bitcoin addresses and digital wallets. Bitcoin software can also be used by individuals to track the user’s IP address anonymously.
Extracting Bitcoin currency is considered to be mining. It is a business that many people are already making a profit off of. The Bitcoin Miner is the network used to mint Bitcoins. This is done using software that helps find new blocks in a chain found in the Bitcoin network.
Anytime a Bitcoin owner finds a new block they are rewarded with 50 Bitcoins. Finding a new block requires a computer to perform very complex mathematical tasks.
Many people are quickly adopting the Bitcoin system. Though six years ago it was only worth 6 USD now it is worth 500 USD or more. Bitcoin systems have been praised by experts in the security field and early adopters in the field of digital technology. They have called the Bitcoin system one-of-a-kind because it opens the door to so many new possibilities. People who have privacy concerns are already using Bitcoins.
Since there is no government authority that is able to track Bitcoin transactions this can result in people using the Bitcoin system in ways that are illegal. However, there are still plenty of reasons for using it that are legal. The hopes are that this article has educated people on Bitcoin technology.
Perhaps the best advantage to using Bitcoins is that it provides people with the ability to quickly and easily send money to anyone anywhere in the world. Satoshi created a peer-to-peer network that was run by contributors and Bitcoin enthusiasts, rather than a bank or government organization. Contributors are enthusiasts have happily donated their time to the innovation of the Bitcoin system. The reason the system is so special is because it allows people to perform monetary transactions without any bank or government authority finding out about it. The talent of Satoshi led to the problem of double spending within the Bitcoin system being solved.
Fast and Global
Since back in the day, there has been no transaction fees associated with paying with Bitcoins, making it a more cost effective way to pay for items online.