What is Bitcoin?
Bitcoin is a network that allows a new payment system and a completely digital currency. It is the first decentralized payment network driven by its users without a central authority or intermediaries. Bitcoin may be the only existing triple accounting system.
Who controls the Bitcoin network?
No one controls the technology behind the email, Bitcoin has no owners, it is controlled by all users of Bitcoin in the world, Although programmers improve the software, they can not force a change in the Bitcoin protocol because all other users are free to choose The software and the version they want.
How does Bitcoin work?
From the user 's perspective, Bitcoin is no more than a mobile or desktop application that provides a personal Bitcoin purse and allows the user to send and receive bitcoins with it. This is how Bitcoin works for most users.
The Bitcoin network shares public accounting called "block chain". This accounting contains each transaction processed, allowing to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures corresponding to the shipping addresses, allowing all users to have full control when sending Bitcoins from their Bitcoin addresses.
Is it really used by people?
Yes. There is a growing number of businesses and individuals using Bitcoin. This includes traditional businesses like restaurants, houses, law firms and popular Internet services like Namecheap, Wordpress, Reddit and Flattr. Although Bitcoin is still a relatively new phenomenon, it is growing fast.
How do you acquire bitcoins?
Buy bitcoins at a Bitcoin exchange house.
Exchange bitcoins with someone in your area.
Get bitcoins through competitive mining.
While it is possible to find individuals who wish to sell bitcoins in exchange for a payment by PayPal or credit card, most exchange houses do not allow to use these methods of payment.
What is the difficulty of making a payment with Bitcoin?
Payments with Bitcoin are easier to make than purchases with credit or debit cards and can be received without the need for a merchant account. Payments are made from the application of wallet, both with your computer or smartphone, entering the address of the recipient, the amount to pay and pressing send.
What are the advantages of Bitcoin?
Freedom of payments - you can send and receive any amount of money instantly from and to anywhere in the world. No banks with schedules. Without Borders. No limits imposed. Bitcoin users always have complete control over their money.
Very low rates - Payments with Bitcoin are currently processed at low rates or at no charge
Reduced risk for traders - Transactions with Bitcoin are secure, irreversible, and do not contain personal and private data of customers.
Security and control - Bitcoin users have complete control over their transactions; It is impossible for traders to force unwanted or detected charges, as can other payment methods. Bitcoin payments can be made without being associated with personal information. This offers a high level of protection against identity theft. Bitcoin users can also protect their money with backups and encryption.
Neutral and transparent - Bitcoin's supply is available in the block chain for anyone who wants to check and use it. No individual or organization can control or manipulate the Bitcoin protocol because it is cryptographically secure. Bitcoin can be trusted because it is completely neutral, transparent and reliable.
What are the disadvantages of Bitcoin?
Degree of acceptance - Many people still do not know Bitcoin. Every day, more businesses accept Bitcoin to take advantage of its advantages, but the list is still small and needs to grow so they can benefit from its network effect.
Volatility - The total value of bitcoins in circulation and the number of businesses using Bitcoin are very small compared to what it may become. Therefore, relatively small events, exchanges or business activities significantly affect the price. In theory, this volatility will decrease as the market and Bitcoin technology mature.
Ongoing development - Bitcoin software is still in the beta phase with many incomplete features in development. New tools, features and services are being developed to make Bitcoin more secure and accessible to the masses.
Why do people trust Bitcoin?
Much of the trust in Bitcoin comes from the fact that it does not require trust. Bitcoin is a completely open source and decentralized. This means that anyone has access to the complete code at any time. Any R developer in the world can check how it works. All transactions and bitcoins created during their existence can be clearly consulted in real time by anyone. All payments can be made without relying on third parties and the entire system is protected by user-reviewed cryptographic algorithms, similar to what is used in electronic banking. Bitcoin is designed to allow users to send and receive payments with an acceptable level of privacy like any other currency. Bitcoin is designed to allow users to send and receive payments with an acceptable level of privacy. It is also true that Bitcoin is not anonymous and can not offer the same level of privacy as money. The use of Bitcoin leaves public records. There are several mechanisms to protect the privacy of users, plus those that are in development. Even so, a lot of work remains before these features are properly used by most Bitcoin users. There have been some concerns about private transactions with Bitcoin that could be used for illegal purposes. However, Bitcoin will undoubtedly be subject to regulations similar to those existing within financial systems. Bitcoin can not be more anonymous than cash and certainly will not prevent criminal investigations. In addition, Bitcoin is created to prevent a large number of financial crimes.What happens when bitcoins are lost? When a user loses his wallet, the effect is to remove the money from circulation. The lost bitcoins still remain in the block chain just like other bitcoins. However, lost bitcoins remain inactive for ever since there is no way anyone can find the private key (s) that allow them to be used.
Is Bitcoin legal?
As far as we know, bitcoin has not been made illegal by law in most territories. However, some territories (such as Argentina or Russia) severely restrict or prohibit foreign currencies. Other territories (such as Thailand) may limit licensing to certain entities such as Bitcoins bureaux de change.
Regulators from various territories are taking steps to provide individuals and businesses with rules on how to integrate this new technology into the regulated and conventional financial system.
Is Bitcoin useful for illegal activities?
Bitcoin is money and money has always been used for legal and illegal purposes. Cash, credit cards and banking systems far outnumber Bitcoin when it comes to financing the crime. Bitcoin can bring innovation to the payment systems and the benefits of such innovation are considered much more valuable than the potential drawbacks.
Bitcoin is designed to take a big step forward in monetary security and could also play a big role against many forms of financial crime. . Bitcoin transactions are irreversible and immune to fraudulent returns. Bitcoin allows you to secure money against theft using strong and useful mechanisms
Some concerns have arisen that Bitcoin may be more attractive to criminals because it can be used to make private and irreversible payments. However, these characteristics currently exist in cash and in bank transfers, which are widely used. The use of Bitcoin will undoubtedly be subject to regulations similar to those existing in financial systems and will not be different when conducting criminal investigations.
And Bitcoin and consumer protection?
Bitcoin is allowing people to make transactions under their own conditions. Each user can send and receive payments in a similar way to the current money but can make more complex agreements. Multiple signatures allow a transaction to be accepted by the network only if a certain number of people in a group agree to sign the transaction. This will enable innovative mediation services to be developed in the future. These services could enable a third party or individual to accept or deny a transaction if there is a disagreement between the two individuals without having control over the money. Unlike ordinary money and other methods of payment, Bitcoin always leaves a public proof that a transaction has been made, which can be used against fraudulent business.
What determines the price of bitcoin?
The price of bitcoin is determined by supply and demand. When the demand for bitcoin increases, the price goes up, and when demand falls, the price falls. There are a limited number of bitcoins in circulation
Why do I have to wait 10 minutes?
The receipt of a payment is almost instantaneous with Bitcoin. However, there is a delay of 10 minutes on average before the network begins to confirm that transaction by including it in a block and before the received bitcoins can be spent. A confirmation means that there is a consensus on the network that the received bitcoins have not been sent to anyone else and are now owned by you. Once your transaction has been included in a block, it will be "buried" with more confirmations by the following blocks that are added to the chain, which will consolidate this consensus and decrease the risk of a revocation of the transaction.
What happens if I get a bitcoin when my computer is turned off?
Works correctly. Bitcoins will appear the next time you open your wallet. Bitcoins do not actually receive this software, but are added to a public accounting book shared with all devices on the network. If you sent bitcoins when the program in your wallet was off and you open it later, it will download the blocks and update with all the transactions you did not know, and the bitcoins will appear as if you had received them at that moment.
What is bitcoin mining?
Mining bitcoins is the process of investing computational capacity to process transactions, ensure network security, and get all participants synchronized. It could be described as Bitcoin's data center,
Is Bitcoin safe?
Bitcoin technology - protocol and cryptography - has a strong security record and the Bitcoin network is probably the largest distributed computing project in the world. The most common vulnerability is user failure.
Bitcoin was not previously hacked?
The rules of protocol and cryptography used for Bitcoin continue to work perfectly years after its creation, which is a guarantee that the concept is well designed. However, failures have been detected in security and have been solved over time by changes in the software. Like any other type of software, Bitcoin's security depends on the speed at which they are found and solve the problems. As these problems are discovered, Bitcoin will continue to mature
Could users conspire against Bitcoin?
It is not possible to change the Bitcoin protocol so easily. A Bitcoin client that does not comply with the rules, can not impose its own to the other users. In the current specification, it is not possible to incorporate double expense in the same block chain, nor to spend bitcoins without a valid signature. That is why it is not possible to generate uncontrolled quantities of bitcoins out of thin air, to spend foreign funds, to corrupt the network or something similar.