Bitcoin FAQ: Frequently asked questions.

General

Bitcoin is a new innovative technology that incorporates decentralization, peer-to-peer, blockchain technology, open-source, cryptography and cloud technology to transfer tamper-proof ownership of digital data without the use of a third party, all while solving the double spending dilemma. It provides a platform for building new and innovative applications that may already exist but can potentially be improved with the use of Bitcoin or applications that were not possible to achieve before Bitcoin’s existence.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

The design paper was published on October 31, 2008 on http://article.gmane.org/gmane.comp.encryption.general/12588/. Bitcoin went live roughly at the beginning of January, 2009

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Bitcoin is open-source and the code can be viewed publically. The code can be read yourself , or a trusted programmer can read the code to verify that the code does what you have been told it does.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No one knows or can claim to know. But there are reasons to believe it will be. Such as the network effect, the large amount of existing infrastructure, the largest market cap of all the other cryptocurrencies combined by multitudes, the coding can be altered to adapt, etc.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

The code is entirely open-source and viewable. Therefore, we trust in mathematics and coding rather than a human with potential for errors and corruption.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Bitcoins (note the lower case “b”) are the units of value used to transfer in the Bitcoin (note the uppercase “B”) network. There will be a maximum of 21,000,000 bitcoins created.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Purchase them, mine them or accept them for goods or services

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No one owns bitcoin, not even the creator. Bitcoin is run by everyone participating in the network. It’s peer to peer and decentralised therefore there is also no single-point-of-failure.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

A total of 21,000,000 bitcoins will ever be created.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No, a bitcoin is divisible up to the eighth decimal place, meaning you can purchase 0.00000001 bitcoin.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Yes, a bitcoin is divisible up to the eighth decimal place. The smallest amount of bitcoin you can have is 0.00000001 bitcoin.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

People received bitcoins just like they do today via mining, purchasing them or accepting them for their goods and services.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Currently, it takes on average, a couple hours to fully synch with the Bitcoin network and the time is increasing. But users are not required to fully synchronize with the network.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Yes, Bitcoin is online 24/7 with absolutely 0 downtime. As long as there are two nodes online, Bitcoin will run.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

A wallet that synchronizes fully with the Bitcoin network or in other words, downloads the entire blockchain transaction history to verify and relay current transactions.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Yes, Bitcoin is coding like in any other program. Bitcoin can be changed to improve the functionality, efficiency, etc. However, the users must accept the changes by installing the new software in order for the changes to take effect.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No, bitcoins cannot be deleted virtually. But the access to the bitcoins can be lost permanently by neglect.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

If bitcoins are lost, they will remain existing but they will be removed from circulation permanently or until access to the bitcoin is regained.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Economics

Bitcoin’s price is determined by supply and demand similar to current markets.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Bitcoin has been hard-coded to only have a maximum of 21,000,000 bitcoins circulated. But there will never be a total of 21,000,000 bitcoins circulated because people have already lost access to their bitcoins permanently and will continue to in the future.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Yes, there is more than enough. 21,000,000 doesn’t sound like a lot for a population of billions, but with each whole bitcoin being divisible up to the eighth decimal places, a few bitcoins will be sufficient.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Bitcoin’s market is small and is in its infancy. Current markets that are in their infancy with a small market cap will be susceptible to volatile market swings. A higher market cap will require far greater finances to move Bitcoin’s price in both directions.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Bitcoin should stabilize. As the market matures and the market cap increases, volatility should also decrease. Once Bitcoin becomes mainstream, the price volatility should diminish.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Bitcoin is both inflationary and deflationary. Currently, Bitcoin is inflationary because new bitcoins are being created and introduced into the market each day. Eventually, the maximum number of bitcoins that will ever be created will be met (in 2140) and Bitcoin will become truly deflationary.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Two arguments: A) Intrinsic value is based purely on a made-up value that society has created on their own premises. Therefore the intrinsic value of anything in technically incalculable or non-existent. B) Bitcoin’s intrinsic value comes from its scarcity, utility and the fact that bitcoins can only be used on the Bitcoin network.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Four arguments: A) Everything is in or goes through a bubble B) No, a bubble is something that pops and never recovers C) No, bitcoin’s volatility is part of typical infancy process called price discovery in a free market where the market is trying to figure out the value of a bitcoin. D) Yes, but Bitcoin has and will have many more bubbles in the future

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Ponzi scheme: fraud that works by paying out returns from new members/investors A) No, Bitcoin is transparent, not a company or owned by anyone or anything B) Yes, but then so are other things we view as legitimate, such as fiat money *Note: Businesses built on top of the Bitcoin protocol can be secretly running a Ponzi scheme if they aren’t utilizing bitcoin the way it is meant to be used

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No, Bitcoin is algorithmically limited in the total amount of bitcoins to ever exist. Until 2140, new bitcoins are created in a predictable manner and it cannot be altered.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No one knows, or can claim to know (in terms of buying bitcoin to hold). Profits (or losses) can be made by playing the market swings, which is not recommended especially for new users.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Claim have been made as high as $1,000,000 per bitcoin. This really depends on Bitcoin’s success in specific use cases and the adoption rate.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

$0.00, aka bitcoin is completely dead.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No, you cannot buy what is not being sold on the market and even if you could, the price would increase astronomically and exponentially as more are purchased making it impossible to buy all the bitcoins unless you had an unlimited supply of money.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Transactions

Usually, but you risk a slow transaction processing time. Transaction fees typically cost fractions of a cent and is worth the fee.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

A confirmation occurs when a block has been solved.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

A confirmation occurs on average, every 10 minutes because this is how long it takes to solve a block. The more confirmations your transaction has, the lower the probability that the transaction can be reversed. Each confirmation exponentially decreases the probability of a transaction reversal.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Not right now, currently the bitcoin protocol is coded to support 7 tps (transactions per second) and is not close to reaching this limitation yet. Furthermore, the bitcoin protocol can be changed to support much higher transactions per second.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Most likely because your bitcoin wallet is not synched with the Bitcoin network. Underlying causes could be it’s in the process of synching, computer was/is turned off, device internet is disconnected, firewall or port blocking.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Yes. If your wallet requires synching with the Bitcoin network, you’ll have to wait for the synching to catch up with the network before it shows up in your wallet.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Yes. If your wallet requires synching with the Bitcoin network, you’ll have to wait for the synching to catch up with the network before it shows up in your wallet.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Yes. If your wallet requires synching with the Bitcoin network, you’ll have to wait for the synching to catch up with the network before it shows up in your wallet.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Also known as your public (key) address. This is your address to receive bitcoin payments.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Visually, it’s a string of letters and numbers. Functionality wise, this is the address you give to others to send you bitcoins. Each public address has an associated private address.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Visually, it’s a string of letters and numbers. Functionality wise, this is the address you keep secret and is used to spend your bitcoin. Each private address has an associated public address.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Mining

Mining is the process of collecting new transactions broadcasted to the network, adding them into packages called blocks and into the blockchain.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Mining uses its resources to produce new bitcoins, secure the network and keep it operating.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Proof-of-work is a required piece of data that is part of a block’s data and is needed for the block to be added into the blockchain.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

A miner is a reference to the user(s) that are participating in something called mining or transaction verifying. To be a miner you need mining hardware, mining software, electricity and access to the internet.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

A miner receives something called a block reward when he/she/they solve a block. The block reward contains new bitcoins and the transaction fees from the senders of those transactions.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

To mine, you need mining hardware, mining software, electricity and access to the internet.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

The block reward halves roughly every 4 years. The block reward halves because Bitcoin’s algorithm is designed to control the rewarding of new bitcoins to miners in such a way, so that the last bitcoin rewarded is in 2140. When the last bitcoin is rewarded, there will have been 21,000,000 new bitcoins created.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

There is no real answer to this because the length of time required to mine a whole bitcoin is dependent on your hashing rate. There are free mining calculates that estimate the length of time needed to mine a whole bitcoin given a specific amount of hashing power. The calculation factors in the mining difficulty in the equation.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

When 21,000,000 new bitcoins have been created/mined, the block reward will only contain transaction fees from the senders of each transaction.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

The year 2140.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Legal

Each country is different and many countries still have no rules or regulations for Bitcoin. But if you made profit from investing in Bitcoin, you’ll most likely need to pay taxes on capital gains.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No, bitcoin is decentralised meaning bitcoin is running by everyone around the world participating in the Bitcoin network. Therefore, there is no single point of failure. To shutdown Bitcoin, you’ll need to go certain extremes, such as shutting down the internet or shutting off the electricity. The government can slow down the innovation that Bitcoin brings to the world, but then they are being bad leaders for the greater good of mankind.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Slowly, yes. 2014, marks the first year that governments, banks and political groups have taken notice of Bitcoin and attempting create regulations.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Bitcoin is legal in most countries around the world. However, a hand full of locations have restricted or prohibited the use of Bitcoin in areas where their leaders keep strict control over their people. This slows down Bitcoin’s adoption rate and use but will not stop thse use of Bitcoin completely. Many more actions are being taken to legitimize, legalise and regulate bitcoin without hindering it’s innovation compared to those trying to make bitcoin illegal. Globally, the actions taken for or against Bitcoin in the future are not certain.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

We are starting to see consumer protection measures implemented by Bitcoin services, such as vault services that provide hack/theft protection. There may be more in the future, as bigger players enter the market.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Security

The 51% refers to when a single entity controls 51% of the total mining hashrate of the Bitcoin network either through it’s own mining hardware or a centralised mining pool. The attack comes in the form of having the chance of double spending their OWN bitcoin holding, preventing chosen transactions from confirming and preventing miners from finding blocks for a period of time. The potential damage done by this attack is by many, thought of as small. In the event, this could easily cause panic, disruption and trust issues. Some argue that this is no longer possible with Bitcoin because of the amount of hardware you need to gather and the extremely low incentives and impact for executing this attack.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No, bitcoins cannot be duplicated out of thin air because there is no bitcoin to copy. Bitcoin works as a list of all the transactions that have taken place since the beginning and the order that they have occurred in, on the Bitcoin network. Bitcoins can only be spent in more than once place (double spending), but this is not cloning bitcoins. Rather, the recipient never receives the bitcoins.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

The Bitcoin protocol itself has never been hacked or broken. Bitcoin itself uses SHA-256 which is used all over the internet such as in banking. There were security flaws found in the coding itself at the early stages of Bitcoin. These flaws have been corrected quickly. Businesses and services built on-top of the Bitcoin protocol have been hacked but as the market matures, this will become more difficult.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Ultimately yes, unless you are completely-technologically inept and incapable of researching and following step-by-step instructions. If this is the case, waiting until the market has matured is recommended to use bitcoins without complication.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Legal (5)

Each country is different and many countries still have no rules or regulations for Bitcoin. But if you made profit from investing in Bitcoin, you’ll most likely need to pay taxes on capital gains.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No, bitcoin is decentralised meaning bitcoin is running by everyone around the world participating in the Bitcoin network. Therefore, there is no single point of failure. To shutdown Bitcoin, you’ll need to go certain extremes, such as shutting down the internet or shutting off the electricity. The government can slow down the innovation that Bitcoin brings to the world, but then they are being bad leaders for the greater good of mankind.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Slowly, yes. 2014, marks the first year that governments, banks and political groups have taken notice of Bitcoin and attempting create regulations.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Bitcoin is legal in most countries around the world. However, a hand full of locations have restricted or prohibited the use of Bitcoin in areas where their leaders keep strict control over their people. This slows down Bitcoin’s adoption rate and use but will not stop thse use of Bitcoin completely. Many more actions are being taken to legitimize, legalise and regulate bitcoin without hindering it’s innovation compared to those trying to make bitcoin illegal. Globally, the actions taken for or against Bitcoin in the future are not certain.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

We are starting to see consumer protection measures implemented by Bitcoin services, such as vault services that provide hack/theft protection. There may be more in the future, as bigger players enter the market.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Technical (2)

Ultimately, yes. When a fork occurs there are two active but different versions of the blockchain due to incompatibilities between the older and newer version of the bitcoin core client. Logically, eventually one blockchain (and their new transactions since the fork) will be considered the wrong version as the network comes to consensus. If not, there will continue to be two different versions of Bitcoin running simultaneously and independently. These can be either accidental (accidental fork) or intentional (hard fork).

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

A fork occurs when there are two active (but different) versions of the Bitcoin blockchain caused by its’ users using two incompatible versions of the bitcoin core client. As long as the fork remains unsolved, there will remain two different versions of Bitcoin running, simultaneously. There are two types of forks: accidental fork and a hard fork.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Transactions (11)

Usually, but you risk a slow transaction processing time. Transaction fees typically cost fractions of a cent and is worth the fee.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

A confirmation occurs when a block has been solved.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

A confirmation occurs on average, every 10 minutes because this is how long it takes to solve a block. The more confirmations your transaction has, the lower the probability that the transaction can be reversed. Each confirmation exponentially decreases the probability of a transaction reversal.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Not right now, currently the bitcoin protocol is coded to support 7 tps (transactions per second) and is not close to reaching this limitation yet. Furthermore, the bitcoin protocol can be changed to support much higher transactions per second.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Most likely because your bitcoin wallet is not synched with the Bitcoin network. Underlying causes could be it’s in the process of synching, computer was/is turned off, device internet is disconnected, firewall or port blocking.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Yes. If your wallet requires synching with the Bitcoin network, you’ll have to wait for the synching to catch up with the network before it shows up in your wallet.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Yes. If your wallet requires synching with the Bitcoin network, you’ll have to wait for the synching to catch up with the network before it shows up in your wallet.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Yes. If your wallet requires synching with the Bitcoin network, you’ll have to wait for the synching to catch up with the network before it shows up in your wallet.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Also known as your public (key) address. This is your address to receive bitcoin payments.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Visually, it’s a string of letters and numbers. Functionality wise, this is the address you give to others to send you bitcoins. Each public address has an associated private address.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Visually, it’s a string of letters and numbers. Functionality wise, this is the address you keep secret and is used to spend your bitcoin. Each private address has an associated public address.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

General (20)

Bitcoin is a new innovative technology that incorporates decentralization, peer-to-peer, blockchain technology, open-source, cryptography and cloud technology to transfer tamper-proof ownership of digital data without the use of a third party, all while solving the double spending dilemma. It provides a platform for building new and innovative applications that may already exist but can potentially be improved with the use of Bitcoin or applications that were not possible to achieve before Bitcoin’s existence.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

The design paper was published on October 31, 2008 on http://article.gmane.org/gmane.comp.encryption.general/12588/. Bitcoin went live roughly at the beginning of January, 2009

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Bitcoin is open-source and the code can be viewed publically. The code can be read yourself , or a trusted programmer can read the code to verify that the code does what you have been told it does.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No one knows or can claim to know. But there are reasons to believe it will be. Such as the network effect, the large amount of existing infrastructure, the largest market cap of all the other cryptocurrencies combined by multitudes, the coding can be altered to adapt, etc.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

The code is entirely open-source and viewable. Therefore, we trust in mathematics and coding rather than a human with potential for errors and corruption.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Bitcoins (note the lower case “b”) are the units of value used to transfer in the Bitcoin (note the uppercase “B”) network. There will be a maximum of 21,000,000 bitcoins created.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Purchase them, mine them or accept them for goods or services

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No one owns bitcoin, not even the creator. Bitcoin is run by everyone participating in the network. It’s peer to peer and decentralised therefore there is also no single-point-of-failure.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

A total of 21,000,000 bitcoins will ever be created.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No, a bitcoin is divisible up to the eighth decimal place, meaning you can purchase 0.00000001 bitcoin.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Yes, a bitcoin is divisible up to the eighth decimal place. The smallest amount of bitcoin you can have is 0.00000001 bitcoin.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

People received bitcoins just like they do today via mining, purchasing them or accepting them for their goods and services.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Currently, it takes on average, a couple hours to fully synch with the Bitcoin network and the time is increasing. But users are not required to fully synchronize with the network.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Yes, Bitcoin is online 24/7 with absolutely 0 downtime. As long as there are two nodes online, Bitcoin will run.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

A wallet that synchronizes fully with the Bitcoin network or in other words, downloads the entire blockchain transaction history to verify and relay current transactions.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Yes, Bitcoin is coding like in any other program. Bitcoin can be changed to improve the functionality, efficiency, etc. However, the users must accept the changes by installing the new software in order for the changes to take effect.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No, bitcoins cannot be deleted virtually. But the access to the bitcoins can be lost permanently by neglect.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

If bitcoins are lost, they will remain existing but they will be removed from circulation permanently or until access to the bitcoin is regained.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Mining (10)

Mining is the process of collecting new transactions broadcasted to the network, adding them into packages called blocks and into the blockchain.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Mining uses its resources to produce new bitcoins, secure the network and keep it operating.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Proof-of-work is a required piece of data that is part of a block’s data and is needed for the block to be added into the blockchain.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

A miner is a reference to the user(s) that are participating in something called mining or transaction verifying. To be a miner you need mining hardware, mining software, electricity and access to the internet.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

A miner receives something called a block reward when he/she/they solve a block. The block reward contains new bitcoins and the transaction fees from the senders of those transactions.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

To mine, you need mining hardware, mining software, electricity and access to the internet.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

The block reward halves roughly every 4 years. The block reward halves because Bitcoin’s algorithm is designed to control the rewarding of new bitcoins to miners in such a way, so that the last bitcoin rewarded is in 2140. When the last bitcoin is rewarded, there will have been 21,000,000 new bitcoins created.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

There is no real answer to this because the length of time required to mine a whole bitcoin is dependent on your hashing rate. There are free mining calculates that estimate the length of time needed to mine a whole bitcoin given a specific amount of hashing power. The calculation factors in the mining difficulty in the equation.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

When 21,000,000 new bitcoins have been created/mined, the block reward will only contain transaction fees from the senders of each transaction.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

The year 2140.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Economics (15)

Bitcoin’s price is determined by supply and demand similar to current markets.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Bitcoin has been hard-coded to only have a maximum of 21,000,000 bitcoins circulated. But there will never be a total of 21,000,000 bitcoins circulated because people have already lost access to their bitcoins permanently and will continue to in the future.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Yes, there is more than enough. 21,000,000 doesn’t sound like a lot for a population of billions, but with each whole bitcoin being divisible up to the eighth decimal places, a few bitcoins will be sufficient.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Bitcoin’s market is small and is in its infancy. Current markets that are in their infancy with a small market cap will be susceptible to volatile market swings. A higher market cap will require far greater finances to move Bitcoin’s price in both directions.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Bitcoin should stabilize. As the market matures and the market cap increases, volatility should also decrease. Once Bitcoin becomes mainstream, the price volatility should diminish.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Bitcoin is both inflationary and deflationary. Currently, Bitcoin is inflationary because new bitcoins are being created and introduced into the market each day. Eventually, the maximum number of bitcoins that will ever be created will be met (in 2140) and Bitcoin will become truly deflationary.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Two arguments: A) Intrinsic value is based purely on a made-up value that society has created on their own premises. Therefore the intrinsic value of anything in technically incalculable or non-existent. B) Bitcoin’s intrinsic value comes from its scarcity, utility and the fact that bitcoins can only be used on the Bitcoin network.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Four arguments: A) Everything is in or goes through a bubble B) No, a bubble is something that pops and never recovers C) No, bitcoin’s volatility is part of typical infancy process called price discovery in a free market where the market is trying to figure out the value of a bitcoin. D) Yes, but Bitcoin has and will have many more bubbles in the future

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Ponzi scheme: fraud that works by paying out returns from new members/investors A) No, Bitcoin is transparent, not a company or owned by anyone or anything B) Yes, but then so are other things we view as legitimate, such as fiat money *Note: Businesses built on top of the Bitcoin protocol can be secretly running a Ponzi scheme if they aren’t utilizing bitcoin the way it is meant to be used

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No, Bitcoin is algorithmically limited in the total amount of bitcoins to ever exist. Until 2140, new bitcoins are created in a predictable manner and it cannot be altered.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No one knows, or can claim to know (in terms of buying bitcoin to hold). Profits (or losses) can be made by playing the market swings, which is not recommended especially for new users.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Claim have been made as high as $1,000,000 per bitcoin. This really depends on Bitcoin’s success in specific use cases and the adoption rate.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

$0.00, aka bitcoin is completely dead.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No, you cannot buy what is not being sold on the market and even if you could, the price would increase astronomically and exponentially as more are purchased making it impossible to buy all the bitcoins unless you had an unlimited supply of money.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Security (4)

The 51% refers to when a single entity controls 51% of the total mining hashrate of the Bitcoin network either through it’s own mining hardware or a centralised mining pool. The attack comes in the form of having the chance of double spending their OWN bitcoin holding, preventing chosen transactions from confirming and preventing miners from finding blocks for a period of time. The potential damage done by this attack is by many, thought of as small. In the event, this could easily cause panic, disruption and trust issues. Some argue that this is no longer possible with Bitcoin because of the amount of hardware you need to gather and the extremely low incentives and impact for executing this attack.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

No, bitcoins cannot be duplicated out of thin air because there is no bitcoin to copy. Bitcoin works as a list of all the transactions that have taken place since the beginning and the order that they have occurred in, on the Bitcoin network. Bitcoins can only be spent in more than once place (double spending), but this is not cloning bitcoins. Rather, the recipient never receives the bitcoins.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

The Bitcoin protocol itself has never been hacked or broken. Bitcoin itself uses SHA-256 which is used all over the internet such as in banking. There were security flaws found in the coding itself at the early stages of Bitcoin. These flaws have been corrected quickly. Businesses and services built on-top of the Bitcoin protocol have been hacked but as the market matures, this will become more difficult.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment

Ultimately yes, unless you are completely-technologically inept and incapable of researching and following step-by-step instructions. If this is the case, waiting until the market has matured is recommended to use bitcoins without complication.

Please log in to rate this.
0 people found this helpful.

0 Comments - Leave a Comment


“Those who dismiss Bitcoin do so because they don’t understand it”

donate to muchbitcoin.org
1H2dyX62kEVvskWwZETur6mgPxUUey3A4M

TOP
X
*Oct 27, 2016: Bitcoin Core v0.13.1 released. 95% of miner hashing power must upgrade for SegWit activation. | What's New? | Download Update | % blocks mined w/ Segwit | % Running v.0.13.1+
¤
Login Q&A Contact Stats Price Share
Thank you! Your message has been submitted to us.
 
×
×
×
×
737507
Visit Today : 206
Visit Yesterday : 333
This Month : 4965
This Year : 24091
Total Visit : 737507
Hits Today : 735
Total Hits : 1983040
Who's Online : 2
Server Time: 17-03-15
×

Recently Asked:

×