Who created Bitcoin?
Original Bitcoin code was written by a very mysterious person who called himself Satoshi Nakamoto. It happened in 2008 when he came up with his crypto currency idea. He described principles of its’ work in his so called White Paper. Two years later he left development of Bitcoin leaving it to others.
When you hear blockchain term consider it as a one big library because basically this is what blockchain is. It works following way: miners (users) all over the world try to solve different difficult mathematical tasks. They are using special computers for that. They also get awarded with some coins for doing their job. And this is an endless process which repeats all the time. Thanks to that we have bitcoins.
Fortunately, it is not possible to spend bitcoins twice. This is thanks to blockchain. It ensures that all transactions were legit. It happens because of miners who are confirming all of transactions by using their PCs. And this is exactly the thing that makes every Bitcoin transaction unique. In case if somebody would try to copy it then original block would change. And if that happened network would deny them.
Difference between modern banks and blockchain is that last one is totally decentralized. We don’t need to trust our money to banks because P2P can do all the job for them. Also its’ open source kind of nature makes blockchain way more versatile.
There may be lots of reasons to use bitcoins. You might be under 18 years old guys who can’t accept Payapl for instance. Or maybe you are just a normal citizen who was tired of monstrous fees related to money transfers. Well, Bitcoin would be a good choice in all these situations.
Bitcoin mining is similar to gold mining. Only in this case we use special computers to make them solve different puzzles. Those puzzles in their turn help to confirm transactions. For their job miners get their reward in bitcoins. By doing all this miners make the network more secure.
In case if you want to buy Bitcoins you can use different exchanges, Paypal, BTMs (basically ATMs that accept Bitcoins).
It is also possible to sell the bitcoins. You can do it by using some exchanges that accept credit cards or PayPal or by finding BTMs (as it was already written above, BTMs are ATMs but only for Bitcoin).
You don’t necessary need a digital store in order to spend some of your BTCs. You can also find some old good brick & mortar stores accepting Bitcoins too. Though most of them use third party services it is not really necessary at all because sellers can also accept coins directly.
Why should I trust those Bitcoins?
Well, there are three big reasons for that: decentralization, open source nature and P2P. By trusting Bitcoins you are trusting mathematical algorithms – not a people. Crypto money is a our future.
Bitcoin is really anonymous?
Well, in order to make transactions people need to have their public addresses which work as some kind of ID. Those addresses contain somewhere about 30 characters. But since these addresses do not contain any personal information people often say that Bitcoin is pretty much anonymous.
But it’s not so simple though. Let’s say you want to purchase some BTCs by using some of exchanges out there. But you can easily get tracked by doing that. Or by getting shipped stuff. So that’s why it is better to use a new address every single time when you want to make a transaction. But anyways there is a chance of someone going to explore blockchain and find out some patterns in your transactions this way finding your persona.
In this way Bitcoin reminds me an e-mail technology. It is not necessary for people to know your name in order to be able to track you down. But you could complicate it for them by using some mixers that take your coins and start chaotically moving them between addresses so it wouldn’t be possible to trace them. But in this scenario you would have to trust the services who do this kind of stuff. Another way is to buy bitcoins with other cryptocurrency. But this has its’ own downsides too: first of all you gonna lose some money because of exchanger fees. Then you still could get traced since you will have to use exchangers.
Crypto coins are just about the money?
Lots of people think that Bitcoin and othe altcoins is all about the money but it is not true. The technology behind it can also affect voting system, different markets, identification systems etc.
What is going to happen if I lose my bitcoins?
Well, the world is not going to end but even though it may sound pessimistic you won’t be able to restore them unless you don’t use some wallets that offer backups. Another alternative would be to use your passcode seed.
Who is in charge of bitcoins?
Nobody! It may sound funny but it is like that. Biggest difference between bitcoins and banks is that Bitcoin is not some kind of organization. It is simply a protocol. But some groups of people – developers for example – can influence Bitcoin by choosing the way they will be updating this protocol. Also there are miners without who there wouldn’t be any sense in Bitcoin.
What is a Bitcoin wallet
As for the Bitcoin wallet then it is simply an app that allows you to operate your Bitcoins. It can store, send and receive them for you. There are different types of such apps. Smartphone ones being the popular cause they are so easy to use. All you need is to scan QR-code with phone’s camera – no copy-pasting lengthy addresses.
Are bitcoin exchanges required for trading Bitcoins?
Web internet apps got their own features or are being run under certain central servers. Pros of this approach is that it will be easier to recover such wallet. Cons: they are less private. Another wallets store all the info on the device and use seed phrase. If that device is getting broken you can restore your wallet by using that phrase. But if you forgot the phrase too then it’s all over. You also can print your wallet onto the paper. This way you will be protected from any kind of hackers. This is the best way to keep big amounts of Bitcoin.
In summary I can definitely tell that BTC wallets really improver over these years getting lots of nice features. But please make sure you download them from official websites because there are lots of scammers nowadays (after all Bitcoin is getting very popular).
Why does Bitcoin price jump so hard?
There are many people who does wonder: why Bitcoin price jump so hard? It is because crypto currencies aren’t so popular yet. In most countries you won’t see people buying coffee in Starbucks and paying for that with BTCs. This is the reason why Bitcoin price isn’t so stable as we would like it to be. Sometimes there are also hackers who affect its’ price (flashback to Mt. Gox). Government laws and decisions also affect Bitcoin’s price.
It is also possible to trade BTCs without exchanges. Most people would do this due to personal and anonymity circumstances. The main problem with exchanges it that they can get hacked or disappear with your money during some sunny day. It happened with Mt. Gox and it was one of the largest Bitcoin exchanges by the way. Another thing to consider is privacy you get when you sell Bitcoins without exchangers’ help. To find sellers you can use websites like Craiglist or apps like Telegram. Only be aware that you will have to take some precautious actions when going to meet person in real life. Because trading BTCs is actually trading CRYPTO MONEY even though it is different kind of money.
How is it possible to earn BTCs by mining with PC?
Short answer is NO because of difficulty of mining that has risen rapidly. But there is a way around though: you can buy dedicated device called ASIC. But don’t forget that all of these devices are power consuming. Another way is to rent ASICs by using cloud mining services. But be sure to read some reviews before you choose any of them.
How to sell Bitcoins?
There are different ways to sell bitcoins. You can do it locally or you can use so called exchanges. Another way to do this would be to use BTMs but unfortunately you won’t find them in every city.
What can you buy with BTCs?
Practically everything just like with simple money: food, goods, clothes etc. You can even buy yourself a hour or some jewelry. In case if merchant doesn’t accept BTCs you can still use them with special debit card.
What is BTC address?
Well, you can think of it as an e-mail cause it acts the same way. You can use it to send & receive coins. But it is more secure if you use different address for every transaction.
How does Bitcoin transactions work?
There are three main aspects: sender’s address, receiver’s address and so called private keys. You just enter your receiver’s address and if that person has private keys that are associated with this transaction then it will be verified by miners who will confirm blocks of exchanges.
What is Bitcoin public key?
Many of you are wondering what does Bitcoin public key mean. Well, Bitcoin is designed that way that every address has two keys: one is private and other is public. Public key is used to allow users to send BTCs while private key allows them to spend their bitcoins. It tells to network that you are the real owner of that address and that the transaction was valid. So this is like some kind of key from safe. You also can use that key for signing messages that verify that you are the real owner of that address.
How can I accept BTC-payments?
Some store owners may ask: how can I accept BTC-payments? Actually this is really easy and can be done less than in 10 min. You can use Bitpay (merchant service) or simply generate your own wallet address. One of the main reasons to use Bitcoins is lower fees than Paypal or credit cards. Also there are no reversible chargebacks. You can use POS-device, payment processor or any phone to accept BTC-payments. Also adding BTS as on of the payment options could possible increase your store’s customer base.
Are there any fees for using Bitcoin?
There are certain fees though: you pay to the miners for their work. You need to know that the higher is fee the faster transaction will be.
What does it mean when a transaction is unconfirmed?
Unconfirmed transaction is a transaction that wasn’t confirmed by miners yet. Usually it takes around 10 min. Maximum for transaction to be confirmed. However as BTC is getting more popular those waiting times could long one hour. But if transaction will fail in 72 hours then your crypto funds will be sent back.
Are BTCs legal?
For most of the countries answer will be yes but there are still some states where it is banned. To find out more you should visit Wikipedia.
Who is/was Satoshi Nakamoto?
Satoshi Nakamoto was a nickname for a person (or maybe even a group of people) who created a Bitcoin client. Seven years ago Nakamoto disappeared and nobody have heard about him since then.
How to safeguard my Bitcoins?
One of the safest ways of storing your BTCs would be to create a paper wallet. In order to do that is to visit a website called BitAddress.org There you can generate new BT address with private key. After that you just need to print it and then you can use it with public QR code in order to get some money on it. But be careful and run Bitaddress code while you are offline to minimize the risks.
Blockchain is a record of all mined crypto bitcoins. Blocks is a set of transactions that miners try to confirm. Blockachain works as some kind of ledger for all transactions made inside of network.
Full Node works as a second layer of security. Only it doesn’t need any rewards and is based on users bases’ altruism. Thanks to Full Nodes network is more vital and there are no double spendings.