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 U.S. Department of the Treasury.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 (it 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 the blockchain. Any transaction information and transfer records are recorded in the blockchain. It should be noted that the blockchain exists throughout the Internet, and all miners can see that everyone has a copy of the entire chain, which makes it impossible to be manipulated by a single individual.
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 the pseudonym “Nakamoto Satoshi”, but no one knows his true identity. 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, just like stocks, but there are hot debates about what Bitcoin's price represents. In theory, the value of Bitcoin should reflect investor confidence in Bitcoin as a technology. However, in reality, most investors regard Bitcoin as a commodity because of its limited supply. Nakamoto eventually limited Bitcoin's total supply to 21 million. At present, it has generated 16.7 million. Every time a miner uploads a new block to the 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 problem 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 software. You may have seen pictures of bitcoin-like gold coins online, but those are souvenirs and cannot be converted to actual bitcoins.
7. Is Bitcoin as tangible as gold? Bitcoin has a lot of similarities with gold, and 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 can't touch Bitcoin like gold, and Bitcoin doesn't sparkle.
8. Is the value of Bitcoin entirely determined by the free market? In most cases, yes. Bitcoin has limited supply, so prices rise as demand rises. Technological innovation also contributes to the value of Bitcoin. When Bitcoin was created in 2009, it was still a novelty. Today, the market considers bitcoin worth some money.
9. Bitcoin does not exist in the real world. How does it have currency value? In fact, Bitcoin exists in the real world, just like the operating system of your cell phone or computer. It is actually software.Obviously, some kinds of software are valuable.
10. If it is virtual, can Bitcoin copy it? Yes. All Bitcoin transactions are stored on the public ledger, which is the blockchain. You can copy the blockchain, but this is just a record. Therefore, you cannot change the distribution of Bitcoin.
11. Is bitcoin a legal currency? Not yet in the United States. For example, in the United States, businessmen must accept the US dollar as the legal currency. The U.S. government allows Bitcoin transactions but does not require all auto dealers or restaurants to accept it. But they must accept the 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 nothing. The Bitcoin blockchain records all transaction history of Bitcoin and validates it through proofreading. But this is not collateral. Bitcoin has no other tangible assets behind it, like cars as collateral for car loans or houses as collateral for mortgages.
13. Who tracks every bitcoin? All miners who maintain the system.
14. How do you buy and sell Bitcoin? There are many convenient trading platforms available today. The most popular mainstream Bitcoin exchange is BtcTrade International (btctrade.im).
15. What did you actually buy? 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 any other market price in Bitcoin minus the transaction fee.
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 the Bitcoin Investment Trust, can be purchased through traditional brokerage companies. But this did not make it more secure than Bitcoin. In fact, most of them are volatile and do not track the price of bitcoins very well.
17. How much money do you need to start? It doesn't need a lot. You can buy Bitcoin, Litecoin, or Ethereum for just $1 at BtcTrade International.
18. Can Bitcoin only buy one part? Yes. A bitcoin can be divided into 8 decimal places, or 0.00000001 bitcoins. 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, Bitcoin transactions can be traced back to you? Yes. Anyone who buys or sells Bitcoin trading platforms must provide their personal information for this transaction. If the law enforcement agency needs to know you, the trading platform will have to provide the information needed by the law. But your personal information will not be part of the blockchain, nor will it be seen by miners who maintain the blockchain. If you conduct a peer-to-peer private transaction with another person, that person may know you, but no one else can see the transaction information.
20. Where did my money go when I purchased a cryptocurrency? When you buy Bitcoin or any other cryptocurrency, someone will sell it to you, so your money is mostly given to the seller. Trading platforms also charge for potentially high transaction costs. Bitcoin miners also charge a fee for maintaining the network, but they will be few.
21. Is bitcoin real money? When can I think of when to save? Bitcoin is valuable and can be converted to ordinary currency or purchased from sellers who accept Bitcoin. So, in this sense, Bitcoin is real money. To make Bitcoin cash, you need to sell it to someone in exchange for dollars or other currencies. Platforms dealing with Bitcoin transactions often experience congestion, leaving some people unable to access their accounts or perform transactions for a period of time, especially when Bitcoin prices experience large fluctuations. Therefore, do not think that you can sell Bitcoin when you can.
22. In addition to scarcity, what is the value of Bitcoin? Based on how much the buyers and sellers think Bitcoin is worth. In other words, there is a very psychological factor.
23. How was Bitcoin stolen? The Bitcoin blockchain itself is safe, but if thieves can enter your account and transfer your bitcoins to accounts under their control, Bitcoin can be stolen from your account. Once Bitcoin is transferred, it cannot be regained. Thieves usually enter other people's accounts by stealing login and password information. Therefore, it is important to do everything possible to protect Bitcoin accounts, including two authentications with mobile phones. You can also have a "private key", which is the third layer of protection.
24. How does Bitcoin generate revenue? Miners create Bitcoin to make money - paying in bitcoin and paying time and computer power for the mining process. They also earn very little transaction fees from Bitcoin users. Bitcoin itself does not generate revenue. It is regarded as a commodity, similar to gold, has market value but does not produce economic activity. When Bitcoin's value rises, Bitcoin will generate profits. But when the value of Bitcoin falls, it will also result in losses.
25. Is Bitcoin worth trading outside the black market? Have. Bitcoin is often used to purchase drugs or finance some criminal activities because bitcoin transfers cannot be traced. But it also has legitimate uses that can be paid to anyone who accepts Bitcoin. Some people think that Bitcoin is a means of storing value.
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 in the main bitcoin code. There are also some cryptocurrencies that have their own blockchains, such as Ethereum or XRP.
27. Why is the price of bitcoin volatile? Because a lot of money goes into a relatively small market, in addition, trading bitcoins is harder than trading stocks or commodities, and it also adds complexity.
28. To what extent does Bitcoin fluctuate because whales affect market prices, to what extent is it because of new investors or external investors? Bigwigs who hold a lot of bitcoins are often called white whale. Bloomberg reported that about 40% of the bitcoins are held by nearly 1,000 people. Many people believe that these white whale collusion affects the price of Bitcoin, but there is no evidence. Bitcoin blockchain trading is public. The blockchain shows that there are large transactions occurring every day, but these transactions are not enough to produce the huge fluctuations we see.
29, Bitcoin bubble? No one can be sure. The skyrocketing prices in recent months are no doubt like bubbles. Many buyers recently wished to have Bitcoin, not because of its intrinsic value, but simply because they thought Bitcoin would appreciate. This is speculation, and speculation often leads to bubbles. But it is also possible that Bitcoin is a real innovation that will help change the financial system. It is worth mentioning that the emergence of the Internet led to the Internet bubble of the 1990s, but now the Internet still exists, and some companies that collapsed at that time have now ranked among the world's most valuable companies.
30. If the Bitcoin bubble really bursts, is all cryptocurrencies plummeting or only Bitcoin? Cryptographic currency tends to move in one direction. But 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 to 1 million U.S. dollars, or Bitcoin will plunge, which is worthless. Which is more likely? Neither of these situations is possible or possible. Bitcoin could climb to $1 million and then plummet. No one knows what level Bitcoin will go to. It is also possible that Bitcoin has reached its highest point. However, it is unlikely that Bitcoin will be worthless unless there is a catastrophic accident, such as the discovery of a fatal flaw in Bitcoin coding.
32. What is the risk? Bitcoin demand may have been destroyed, causing prices to plummet. It may be a technical problem, regulatory intervention, or a negative image due to the huge amount of electricity consumed by Bitcoin. Maybe something totally unexpected.
33. Should I use Bitcoin "hardware wallet"? good idea.
34. How do we find Bitcoin? They do not reply to emails. For many loyal supporters of Bitcoin, one of the great benefits is the decentralization of Bitcoin - the lack of central authority oversight. In reality, trading platforms such as BtcTrade International are actually beneficial for responding to problematic customers, but most of these companies are emerging companies. Then you can only give them pressure and they will get better.
35. Is there customer service via telephone? This is a novel idea. So far, if there is a problem 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 supervision. But this is not necessarily a bad thing. Some Bitcoin investors believe that if the government monitors Bitcoin more, it may legalize Bitcoin and expand its use.
37. Does cryptocurrency replace the U.S. dollar and other currencies? Cryptocurrencies may gain share in the entire currency market, especially if the U.S. government explicitly authorizes certain cryptocurrencies and allows people to use them to pay taxes. But even so it is difficult to replace the dollar - the world's most trusted currency.
38. Does cryptocurrency destroy the global market? will not. A recent report released by Kaying’s macro shows that even if bitcoin collapses, it will not have a major impact on the overall financial market. Although Bitcoin has attracted global attention, Bitcoin's market value is still small, and cryptocurrency has not been incorporated into the real economy or banking system. Bitcoin all out - the price fell to zero - is equivalent to a 0.6% correction in the stock market. Some families’ expenses may be affected, and some people may suffer millions of dollars in losses. However, many people who hold large amounts of Bitcoin are early investors and the price for buying Bitcoin is very low.
39. What products or services can I purchase with cryptocurrencies? In spite of being a cryptocurrency, Bitcoin's best use is not to buy things. Investors may eventually store Bitcoin as a store of value.
If you have to buy something in Bitcoin, you can now use Bitcoin to buy things on Zynga, Overstock.com, Newegg.com, Expedia.com, and Microsoft's online platforms. If you want to book a trip, CheapAir.com accepts cryptocurrency payments. You can buy gift cards on the eGifter website.
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. One of the largest jewelry chain stores in the United States, REEDSJewelers, also accepts bitcoin payments.
40. Can I use Bitcoin at HomeDepot, a self-service renovation retailer? Can not be used directly. But Home Depot is slowly following other retailers, mostly e-commerce: Overstock, a well-known shopping e-commerce vendor in the United States, accepts bitcoin payments; Microsoft’s Xbox store, PayPal, and U.S. mobile payment company Square all accept bitcoin payments.
41. In ordinary retail stores, Bitcoin may become a currency? It depends on what the retailer gets. If consumers eventually find that Bitcoin is cheaper and more convenient to use than current payment methods, Bitcoin may be a retailer 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. But before bitcoin prices become more stable, it seems unlikely that bitcoin will be used universally.
42. What reason does a typical customer prefer to use cryptocurrencies instead of credit cards? So far, no, unless you want to be anonymous. However, Bitcoin can indeed guarantee the security of anonymous and electronic transactions.
43. What percentage of global economic activity is carried out using cryptocurrencies? Very small. But Bitcoin finances a large part of criminal activity.
How do you track different cryptocurrencies? Is there a quotation machine? Yes. Yahoo Finance currently offers comprehensive, free tracking tools for more than 100 cryptocurrencies, each with a quotation machine. Most people do not even realize that there are so many cryptocurrencies.
45. In terms of investment, is the 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. The Bitcoin ETF must be approved by the U.S. Securities and Exchange Commission. This may be a year or more.
47. Why is there a huge difference in the value of cryptocurrency transactions? First, different cryptocurrencies trade according to their own dynamics. The number of unfinished cryptocurrencies is different, their use is different, and their operating rules are different. When bitcoin fluctuations occur violently, there will be spillover effects, and other cryptocurrencies