Beginners to bitcoin have a ton of questions related to bitcoin. They want to know as much as they can and that’s a good thing because when they are fully educated about it only then will they be able to make a thoughtful decision.
We researched and found the most asked questions by people just starting with bitcoins, and answered them below. You can get to know the basic information on the world’s number one cryptocurrency, Bitcoins.
How many times have you sat wondering all the questions about bitcoins burning at the back of your mind waiting to be answered? So to answer them, here’s everything that you or any newcomer will want to know about bitcoins.
1. What is a cryptocurrency?
A cryptocurrency is a version of currency that is used for online payments. This currency comes in the form of tokens or coins. Bitcoin is also a cryptocurrency. There are several other cryptocurrencies but bitcoin receives the most attention and acceptance globally.
2. When was bitcoin created?
Bitcoins were brought into the live market in the year 2009. Back then it didn’t instantly rise to fame, instead people only treated it as an asset rather than using it as a means of payment or a currency.
3. Who developed bitcoins?
Bitcoins were built by a developer who goes by the pseudonym, Satoshi Nakamoto. No other information is known about this person, whether it’s a project of one person or a group of people nobody knows anything about.
To date, no one has ever seen this mysterious Satoshi person and after developing bitcoins he has vanished, never to be heard from again.
4. Is bitcoin actual money?
No, bitcoin is not real money. It is not a replacement either. Bitcoins are a currency that is purchased through paper money. It can be an electronic transaction or the user can pay the negotiated amount to the seller of bitcoins in person.
Bitcoin is an alternate means of payment for goods and services. For bitcoins or any cryptocurrency to be considered actual money, it needs to be authorized and regulated by the government and legal system of the country.
5. Does bitcoin have value?
Yes, bitcoins have value. But is that value stable? No, it is not. The bitcoin prices are highly volatile and keep fluctuating on a dangerous level.
Meaning that the value keeps shifting depending on the bitcoins stored and financed by users in their wallets. To know more about bitcoin mostly traders consult Bitcoin Prime app.
6. Why do people find bitcoin confusing?
The main reason they find it confusing is that it is. Only those who are enthusiastically interested in bitcoin investment can follow everything to the core. For others, it’s nothing but a jumble.
7. Can anyone buy bitcoins?
Yes, anyone can buy bitcoins but buying bitcoins is not as easy as it appears. The person will first have to register and find a verified seller of bitcoins.
The buyer will also need to have a bitcoin wallet in which they can safely secure the currency to use in further activities. Understanding bitcoin wallets is a different matter which is of equal importance.
8. Is bitcoin a bad investment?
It is not entirely a bad investment. The answer to this question will always appear somewhere between black and white.
It would be a lie to say that bitcoins are a bad investment but then it won’t be the truth either if bitcoins are said to be a good long term investment.
The smart thing to do would be to invest 5% or 10% of your income into the bitcoin market and see how that turns out for you instead of investing big time.
9. Is using bitcoins legal or illegal?
It depends on what you use your bitcoins for but even then it cannot be said that bitcoins are illegal.
The local currency of the country gets overshadowed frequently when large amounts of money are invested into bitcoins, for this reason, government and legal policies feel intimidated by bitcoins.
10. Are bitcoins secure?
Bitcoins are stored in their wallets, and it depends on the investors choice of wallets how secure and guarded their digital currency is.
But even that has its consequences and no bitcoin wallet will claim to keep the currency fully safe and secure. If someone loses their bitcoins, no banks or government authorities will back them up or help the investor with the refund.
These were the top 10 questions circulating about bitcoins on the web. If you have any more questions, always take your time to discover everything there is to know about bitcoins.
Editor’s note: Our publications do not offer investment advice. R&AN’s goal in publishing articles like this is only to provide information for individuals who wish to pursue investments at their own risk in the future.