Frequently Asked Questions About Bitcoin
It has been seven years since Bitcoin was first introduced to the world. When it first started, no one really knew how the Bitcoin would fare. In fact, five years ago, the Bitcoin was only valued a few cents. But now, one bitcoin is equal to $660. Because of its volatility, the future of Bitcoin is hard to predict and while the media had killed Bitcoin dozens of times, the growth it had shown shows only a promising future for the digital currency.
If you’re still new to the concept of Bitcoin, then here are the most frequently asked questions about Bitcoin to help you get acquainted.
- What is bitcoin? The first thing that people ask about Bitcoin is Bitcoin itself. Honestly, there is not one definition that could truly and fully explain Bitcoin but if you want a simple explanation then think of it like sending a gold coin via email. Bitcoin is a digital currency that is created and controlled electronically. It can be used to purchase various goods and services anonymously.
- How does bitcoin work? Well, for starters, one would need to download a Bitcoin wallet, an app, where you can store bitcoins. Bitcoins can be bought in a Bitcoin exchange or marketplace. You are also given the opportunity to produce or ‘mine’ your own bitcoins using a software program that solves mathematical problems. You can also get from sponsors for free Bitcoins.
- Is bitcoin secure? Yes it is. In fact, with Bitcoin, you wouldn’t have to give any important information regarding yourself and your accounts. This is because bitcoin transactions would only require two digital keys, one public and one private.
- Is the value of bitcoin tied to the dollar? Definitely not. Its value is determined by the number of people that buy and sell it at a given moment.
- Why bitcoin? Well, there are numerous benefits that come with Bitcoin. First of all, Bitcoin is highly inexpensive with transaction fees at a minimal or even free. With Bitcoin, there is anonymity as well as security and exclusive ownership to the bitcoins that you possess.