46 min to read.
What is Bitcoin BTC?
What is Bitcoin? How does btc work? Is Bitcoin real money? Who is Satoshi Nakatomo?
Table of Content
- What is Bitcoin BTC?
- What is Bitcoin in simple words
- What Bitcoin Looks Like
- What bitcoin is provided with
- Who created the Bitcoin cryptocurrency
- What are Bitcoin forks?
- How Bitcoin Works
- How to earn Bitcoins: with investments and without investments
- Method No1: Trading on crypto exchanges
- Method #2: Long-Term Investing (HODL)
- Method #3: Cryptodeposites
- Method #4: Bitcoin Mining
- Method #5: Bitcoin Faucets
What is Bitcoin BTC?
Bitcoin (Bitcoin) is a network cryptocurrency proposed by Satoshi Nakamoto in 2008. It is different from the currency minted and issued by the state in the past. Bitcoin is a network currency that uses blockchain as the core technology. It has the characteristics of decentralization and open source, and the transaction is a peer-to-peer (P2P) network transaction. Bitcoin transactions will not be monitored by banks or relevant state units. The most special feature is the private key feature adopted by Bitcoin, which can not only ensure the ownership of every Bitcoin owner, but also conduct transactions anonymously, and it is not necessary to propose one's name when trading, so Bitcoin is often considered to be used illegally.
Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence.
Since Bitcoin is an online virtual currency, how did it come about? The way Bitcoin is generated is related to its core technology "blockchain". The feature of the blockchain is "decentralized computing". Each computer in the blockchain will participate in the operation of the database and record all historical bitcoin transactions. , and because of the anonymous nature of Bitcoin, in the process of split calculation, all information is encrypted, and no computer can read who the user is. Therefore, anyone only needs to run the Bitcoin software and participate in the calculation to get Bitcoin, and this process is called "mining".
Although Bitcoin's vision is very good, it actually encounters many problems when it runs. In addition to the different attitudes of various governments towards Bitcoin and the lack of consumption channels, the main problems encountered by Bitcoin today are that the exchange rate floating ratio is too large and the transaction time is too long. Because the special blockchain characteristics of Bitcoin distinguish it from other currencies, everyone is scrambling to pay attention and invest, resulting in a high risk of exchange rate floating ratios. In addition, due to the fact that everyone can mine Bitcoin, the system cannot bear the load, and the transaction time sometimes reaches as high as 40 minutes. Although Bitcoin currently has many problems, its core technology, blockchain, has been widely used in all walks of life.
What is Bitcoin in simple words
Bitcoin (Bitcoin, BTC) is the very first cryptocurrency created. The name comes from the words bit - a unit of measurement of information and coin - a coin. Bitcoin works on the basis of a computer network distributed throughout the Internet, reliably protected from hacking by complex cryptographic algorithms.
Simply put, Bitcoin is a payment system, the work of which is supported not by any one company or state, but by several tens of thousands of computers and servers around the world, "nodes". Thanks to special software, they have the following functions:
- Storage of information about the balance on the wallets of all users;
- Cryptocurrency transfer between users
- Accounting of all transactions and their recording in the database.
Periodically, information is synchronized throughout the network, which makes it possible to identify inconsistencies and prevent any attempts at fraud and hacking.
What Bitcoin Looks Like
Ordinary users access bitcoin through a variety of applications and sites where they have a wallet with a similar address:
If necessary, bitcoin can be easily exchanged for fiat currency - dollar, euro, ruble, hryvnia, etc.
Externally, the process of using cryptocurrency is quite simple and differs little from Internet banking and electronic payment systems. The main difference between bitcoin and the usual currencies is decentralization. Cryptocurrencies are not controlled by any one organization or state, thanks to this, it is impossible at any time to change the rules of the game and "print" the right amount of bitcoins to cover debts - as they do in the United States, overcoming crises with the printing press. True, paper money is at least backed by the gold and currency reserves of the country, and bitcoin appears as if out of thin air and without immersion in details even resembles a financial pyramid. Why is it worth anything at all?
What bitcoin is provided with
Bitcoin is essentially not backed by anything other than the demand for it. It is expensive only because millions of people are willing to buy it for real money or accept it as payment for goods and services.
And this is despite the fact that the number of bitcoins is no more than a line in the program code. Are these people crazy? Not at all, bitcoin has many useful qualities, it is really convenient to use:
High reliability - since 2009 years, the bitcoin code has never been hacked;
Good speed – the transfer will reach in 20 minutes anywhere in the world, faster than SWIFT;
Is easily divided – you can use any amount starting from 0.000000001 BTC;
Low commissions - $ 1,000,000 can be sent for only $ 20;
Historical growth – since its inception, the price of BTC has increased tens of thousands of times.
Who created the Bitcoin cryptocurrency
The creator of Bitcoin is a legendary figure, Satoshi Nakamoto. In fact, this is a pseudonym: despite many journalistic investigations, it was not possible to find out who is hiding behind it. I am inclined to think that a whole team of scientists and programmers tried here - the complexity and volume of the created algorithms is beyond the power of one person, no matter how genius he may be.
Bitcoin was launched in 2009, here are a few important dates that have gone down in the history of cryptocurrencies:
- January 3, 2009 – The first 50 bitcoins were generated;
- January 12, 2009 – The first transaction on the Bitcoin network, between Satoshi Nakamoto and Hal Finney;
- September 2009 – first exchange for real currency, 5050 bitcoins for 5.02 dollars;
- May 2010 – the first exchange for a real product, 10,000 bitcoins for pizza with delivery.
Judging by today's prices, pizza for hundreds of millions of dollars sounds cool :) Of course, then no one in their right mind could have predicted today's price, only a few knew about it.
What are Bitcoin forks?
Bitcoin is the first successful attempt to implement cryptocurrency technology. This is the main reason for its popularity, because from a technical point of view it has enough shortcomings that have been eliminated in newer cryptocurrencies. Bitcoin has the most problems with scaling - the explosive growth in the number of network participants leads to overloads and a decrease in the speed of transaction processing. You can solve the problems by changing the program code, but the source code of bitcoin can change only if the vast majority of network participants agree to it. The crypto community is not always united, so Bitcoin has several branches – forks, in other words, cryptocurrencies under the Bitcoin brand, with slightly modified code and characteristics:
- Bitcoin Cash (August 2017) – increased the block size from 1 to 8 MB, which allowed to reduce fees and increase the speed of transaction processing. It is considered the most successful fork of Bitcoin.
- Bitcoin Gold (October 2017) – MINING on ASIC is prohibited, which in theory should have made the cryptocurrency more decentralized. In May 2018, the network was attacked by 51%, so the original idea failed.
- Bitcoin Private (March 2018) is a combination of the technology of the ZClassic cryptocurrency and Bitcoin, which made it possible to strengthen the anonymity of transfers, the possibility of private transactions appeared.
- Bitcoin Diamond (November 2017) – the maximum number of coins has been increased by 10 times, the block size has been increased to 8 MB, the transaction confirmation time is 10 minutes.
Despite the improvements, according to forecasts, the forks are unlikely to be able to catch up with the popularity of the "main" bitcoin. Simply put, there is no particular need to buy them.
How Bitcoin Works
For the first time, the principle of bitcoin operation was published by Satoshi Nakamoto in 2008 in an article that would later be called bitcoin White Paper (here is a link to the Russian translation of the document). It describes all the technical solutions that made it possible to make an electronic transfer system without intermediaries and the need for trust between the recipient and the sender. The presence of such a document has become the standard for all new cryptocurrencies.
In simple words, Bitcoin is a list of users with the amount of cryptocurrency on their wallets. Special software stores a transaction log for the entire history of the existence of the cryptocurrency. This information is publicly available, through Bitcoin Explorer you can find any transaction since the creation of the cryptocurrency. For example, you can see transactions in the very first block, which was recorded back in 2009:
Suddenly, a lot of new terms appeared, now we will deal with them. Let's start with what exactly happens during the sending of bitcoins:
- A message about changes on the balance of the sender and recipient enters the network.
- The system decrypts the digital signature and verifies the owners.
- If everything matches, the transaction is confirmed.
- All translations correct from the point of view of the system are recorded in information blocks.
In the example, we looked at the transaction in the very first block, there are several hundred thousand of them, and the blocks with information about confirmed transfers go in chronological order. The technology (without exaggeration, revolutionary) was called blockchain – in translation, a chain of blocks. Schematically, it looks like this:
What are the advantages of blockchain? In an almost perfect system of protection against intruders, there are only a few very difficult to implement ways to hack the blockchain, for example, a 51% attack. Each transfer on the Bitcoin network is recorded in blocks on host computers that keep a history of transactions. For this reason, the blocks of information on each device will be similar, but some users will have differences - due to network errors or attempts to "finish" extra bitcoins.
The correct block is selected automatically using the consensus algorithm – a mechanism for verifying the authenticity of balances, transactions and signatures. This is a democratic process, in fact, automatic elections – a block of information without errors always wins by a majority of votes. Bitcoin uses the Proof-of-Work consensus algorithm, which allows you to protect cryptocurrency networks from abuse through the condition of solving a complex mathematical problem (specifically, the calculation of the SHA-256 function) to obtain the right to add a new block of information. For this reason, an attacker will not be able to spam the blockchain with false information, only people who really support the work of the network - miners - get access to adding blocks, and the process of "work" is called mining. And even if you become a miner and try to add the wrong transaction to the blockchain, other miners simply will not confirm it.
I think you have definitely heard about bitcoin mining and yes, you can make good money on it: for adding a block, the bitcoin network pays miners 6.25 BTC every 10 minutes. Only one miner out of thousands around the world randomly receives a reward, but your chances can be increased if you build a mining farm with high performance:
Mining is the only source of new bitcoins in the system, but it has limitations: the total number of bitcoins will never exceed 21,000,000. To do this, once every 4 years, halving is done - reducing the reward for mining by 2 times. According to forecasts, the next one will occur in 2024 and instead of 6.25 BTC, the reward will decrease to 3.125 BTC.
How to buy and securely store Bitcoin
If you want to use bitcoins for online payments, international transfers, or storage with an eye to long-term price increases, you need to buy them somewhere.
How to buy bitcoin
Estimated Total Time
What is necessary:
Tool: A cryptocurrency market.
Compare Cryptocurrency Markets
When buying Bitcoin for the first time; You need to choose an exchange that accepts payment in TL, USD or any other currency of your choice.
Create an account
Enter the cryptocurrency exchange of your choice. Then create an account by verifying your name, email address, phone number and credentials.
The cheapest way to buy Bitcoin is usually to deposit funds from your bank account to an exchange and then use it for purchases. If you decide to sell your cryptocurrency, you can transfer the money back to your account later.
First of all - you don't have to buy a whole Bitcoin. Most exchanges let you buy $10 worth, maybe even less. Just type in how much you want to spend in TL, dollars or your deposited currency and let the exchange calculate the rest.
On many services, you can also store cryptocurrency for free and for an unlimited period of time. Here are the best options, in my opinion:
Briefly about each of them:
Binance is the largest cryptocurrency exchange. On it you can not only buy and store bitcoin, but also earn with the help of trading and crypto depositories. Cashback is accrued when registering on my affiliate link.
Trustee Wallet is one of the best mobile wallets with a Russian-language interface.
ExchangeSumo – monitoring of reliable exchangers through which you can buy bitcoin without identity verification. There is also an opportunity to get a good cashback.
AdvCash is one of the most popular payment systems where you can buy cryptocurrencies.
Bitzlato is a p2p platform with a large selection of cryptocurrencies and payment methods.
BTC_CHANGE_BOT is a telegram bot from Bitzlato, a convenient thing for active trading.
Ledger is a so-called "cold wallet", which is similar to a flash drive and connects to the Internet if necessary. This is the highest level of protection for crypto investments.
It's hard to say which of the options is the best – for you, the answer may be different. Therefore, try different services and wallets to work with bitcoin, but remember that if you want to send BTC to another wallet, the commissions can be very high, up to tens of dollars:
How to earn Bitcoins: with investments and without investments
The cryptocurrency market offers a wide variety of ways to make money and most of them are associated with bitcoin. Some require certain investments, and some can be used for free – so that each of you can find a suitable option. In this article, I will briefly talk about the five most promising ways to earn income from bitcoins, and the full list you will find in the article Review of 22 options for making money on cryptocurrencies.
Method No1: Trading on crypto exchanges
Bitcoin's impressive ups and downs are a paradise for traders who can increase their investments several times in a short time. For successful BTC trading, it is best to work through a cryptocurrency exchange – they have the highest liquidity and the best buy/sell prices. Thanks to the partnership with some exchanges, I can offer discounts on commissions on exchange transactions to blog readers:
For successful trading on crypto exchanges, you need a certain theoretical training and a large amount of experience - so this way of earning is not suitable for everyone. Skills and qualifications can only be gained over time, so try not to risk large sums at first.
Method #2: Long-Term Investing (HODL)
The easiest and historically more than effective way to make money on Bitcoin. People who bought cryptocurrency a few years ago and still haven't sold it today have hundreds and even thousands of percent of their profits. Of course, history does not always repeat itself, but even not in the most successful 2021, the price of BTC increased almost 2 times.
Personally, I have been investing in cryptocurrencies since the beginning of 2021, including holding about 1% of the portfolio in bitcoins. According to the results, this is not the best coin, but in general, there are the least problems with it – I am sure that Bitcoin will be the most popular coin in the crypto market for several more years.
Method #3: Cryptodeposites
Long-term investing in bitcoin has one drawback - the only way to earn money is to increase the price. If there is a collapse in the market, as in 2018, then the investor will be left with a loss. To increase the profitability of bitcoin investments, it is worth using crypto depositories - a way to obtain passive income through interest investments on cryptocurrency exchanges, similar to bank deposits.
For example, on the Binance crypto exchange, you can invest bitcoins at 7% per annum for 90 days:
Even in dollars, it is not easy to get 7% per annum, and with the growth of the price of bitcoin, the projected profit in USD will be even higher:
BTCUSD rate growth by 50%: profit in USD 7%*1.5 = 10.5%;
BTCUSD rate growth by 100%: profit in USD 7%*2 = 14%;
BTCUSD rate growth by 200%: profit in USD 7%*3 = 21%.
Due to the high popularity, such a deposit is not always available. If there is no desire to wait, there is always an option at 3%:
The interest rate grows with the size of the deposit: for amounts up to 0.05 BTC, the income will be 3%, then it grows to 4% and for deposits of more than 0.5 BTC, the rate becomes the maximum - 4.10% per annum.
Method #4: Bitcoin Mining
Bitcoin is the most popular cryptocurrency for mining, which is not surprising: each miner has a chance to get 6.25 BTC – a very solid amount. Competition here has reached the point that entire data centers compete for a reward, where the "mining" of bitcoin takes place on an industrial scale. On a home PC and even a home mining farm, you will not be able to earn money, so if you do not want to invest hundreds of thousands of dollars in equipment, then it is better to rent it – this is called cloud mining.
Method #5: Bitcoin Faucets
This method of obtaining cryptocurrency does not require investments, it will only take time and patience. Bitcoin faucets are sites where you can get satoshi (1/1000000000 BTC) for free in two ways:
- Go to the site once every N minutes and make a click (usually you need to fill out a captcha);
- Perform various tasks - take surveys, play mobile games.
The first method is the simplest and not time-consuming. Once every half an hour to an hour, you need to go to the tap site and make a click, to increase income, you should use several sites at once. Earnings are usually several satoshis at a time. These sites pay the most:
The second way to make money on cranes is a variety of tasks. They require more time, but the rewards are higher:
With a bitcoin price of $50,000, a thousand satoshi is $0.5, not so bad in 10 minutes is it? If you go to several taps every day, pick up free cryptocurrency and do tasks in your free time - it is quite possible to accumulate a pleasant amount.
Is it worth buying/selling Bitcoin today
Every day the situation on the BTCUSD market is changing, there are always opportunities to buy or sell bitcoin profitably:
To understand which trade is better to open today, you can use a few simple tools.
Bitcoin Technical Analysis
Technical analysis is the assessment and forecasting of the market situation based on indicators, i.e. mathematical formulas. The widget above collects data from 26 indicators and groups them depending on the result at the moment. I check the technical analysis of bitcoin using this widget:
If most of the signals say "buy", the arrow will move to the right, and if "sell" - to the left. For the most accurate analysis, it is important to choose the right time period so that the analysis corresponds to your trading goals:
- For intraday transactions – 1 minute, 5 minutes, 15 minutes;
- For transactions up to a month — 30 minutes, 1 hour, 2 hours;
- For long-term transactions – 4 hours or more.
It is impossible to trust technical analysis 100%, so before the transaction it is important to correctly assess the overall market situation. One of the most important points is what emotions prevail in the market.
Bitcoin's Fear and Greed Index
The Fear and Greed Index shows what emotions prevail in the market. They are especially pronounced in cryptocurrencies, where many novice traders and investors participate. Decoding index values:
- 0-30 — extreme fear;
- 30-70 – the market is generally calm;
- 70-100 is extreme greed.
When fear prevails in the market, investors panic too much and dump cryptocurrency at any price. For us, this is only a plus – it is worth looking for opportunities to buy, even if technical analysis says to sell. Conversely, when the market becomes greedy, it is better to look for opportunities for sales or partial profit taking – I do not recommend shorting cryptocurrencies.
Bitcoin's Popularity in media
Since cryptocurrencies have no intrinsic value, their prices are highly dependent on the frequency of mentions in the media and on social networks. The more people learn about Bitcoin, the more often it will be bought and the higher the prices will be. To assess the social factor in the price of BTC, I use the Google Trends service - it perfectly shows how popular cryptocurrency is in the media today:
If the value is below 50, this means that bitcoin is not remembered too often and you should not expect a large growth. If the value is above 50 and grows, the cue ball is gaining popularity and often gets into the media, which means that the probability of price growth is high due to the attraction of new investors and traders.
Bitcoin Prospects and Rate Forecast for 2022
Cryptocurrencies are not the easiest asset to predict, but we will still try. Here are the factors that affect the forecast of the bitcoin rate for 2022:
- Dollar Rate: The higher the dollar rate, the worse it is for Bitcoin. After May 2021, the rate of the US currency has been constantly growing - this is the main reason why the profitability of BTC in the end turned out to be quite modest.
- Forecast for 2022: the period of "cheap money" after the coronacrisis ends, it well supported the growth of the crypto market. Much depends on when exactly the Fed raises the benchmark interest rate — when if that happens, the dollar will automatically become more expensive and bitcoin will fall in value.
- Inflation rate in the United States. First, high inflation puts pressure on the dollar rate, it grows weaker or even decreases - for bitcoin this is positive. Secondly, with high inflation, people begin to look for safe-haven assets that will help save money. Many people, especially young people, use cryptocurrencies for this.
- Forecast for 2022: due to the actively working printing press in 2019-2021 and various problems in the global economy after the coronacrisis, dollar inflation will be quite high for a long time – which will definitely play a plus.
- Updates and hard forks. Bitcoin is popular, but today there are dozens of faster and more scalable cryptocurrencies, so updates and improvements are extremely necessary. If the update was successful, the demand for cryptocurrency will grow, and then the price. There are two ways to improve the cryptocurrency: make changes directly to the code (you need the approval of the majority of users) or create a hard fork - an alternative version of the cryptocurrency (part of the community breaks off, the demand and price of the "mother" crypto fall).
- Prediction for 2022: The last update of Bitcoin Taproot took place in November 2021. Multi-signature technology was introduced, thanks to which it was possible to reduce commissions and improve confidentiality. Smart contracts have also been improved, which today hold hundreds of different businesses and startups in the field of cryptocurrency - exchanges, applications, credit services, etc. In general, the update is a little late, but it will allow bitcoin not to lose its position in 2022 - perhaps the demand will even grow.
- Legalization. Bitcoin is one of the few cryptocurrencies that has begun to be recognized at the legislative level. In 2021, it became the national currency of the country for the first time, it happened in El Salvador. This had a good effect on the reputation of the cryptocurrency, and hence on its demand - the BTCUSD rate eventually reached as much as $ 70,000. Also at the end of 2021, the first Bitcoin-ETF was launched on the US market, which allowed institutional investors to legally invest in the first cryptocurrency. But China, another big player in the crypto market, on the contrary, prohibits bitcoin and other cryptocurrencies.
- Forecast for 2022: In addition to El Salvador, there are no people willing to recognize bitcoin as a state currency yet. In the US, cryptocurrencies are treated warily, but not banned. Several countries are developing state analogues that can become competitors to BTC. In general, large bonuses from legalization should not be expected in 2022.
- Support for large businesses. Many companies from the top 100 by capitalization have long been interested in cryptocurrencies. In 2020, PayPal added the ability to its users to buy Bitcoins and several other cryptocurrencies, and in 2021, Tesla acquired about 50,000 BTC and still keeps them on the balance sheet. Such news supports the price of bitcoin well.
- Forecast for 2022: of the companies that can start using bitcoin on a large scale in 2022, visa and MasterCard can be distinguished (working on integrating cryptocurrencies with their cards), as well as Amazon (it will be possible to pay with cryptocurrency).
Frequently Asked Questions
Can bitcoin be cashed
Yes, Bitcoin can be cashed out in 5 ways - through a crypto exchange, a P2P exchange, a specialized exchange service and Bitcoin ATMs and Withdrawing funds.
What is bitcoin mining
Bitcoin mining is the production of cryptocurrency due to the capacity of computer equipment. Bitcoin mining is the production of cryptocurrency due to the capacity of computer equipment. Bitcoin mining is no longer possible without special expensive equipment. If at the beginning and middle of the 2000s even a home computer with a powerful video card was suitable for this, now industrial computing power is required. The fact is that there cannot be more than 21 million bitcoins. Most of them have already been generated, and more and more capacities are required for each new bitcoin.
What is bitcoin and how does it work
Bitcoin is a type of digital currency. It is not run by the state or banks. And the digital currency is money that is programmatically controlled by an electronic settlement system.
What is bitcoin wallet
A Bitcoin wallet is a computerized wallet that can hold Bitcoin as well as other cryptographic forms of money, like Polkadot or ETH. Bitcoin wallet provides you 2 different keys which called the public key and the private key. The public key is the "address" of your wallet. If someone wants to send you bitcoins, they need to know this address. The private key is the “password” to your wallet. If you want to send bitcoins to someone, then you need to present this password to the system. A SEED phrase is like a secret question. The SEED phrase consists of twelve random words, with which you can restore access to your wallet if you lose your private key. When you create a crypto wallet, you get these two keys. They are interconnected by tricky mathematical operations, which we will not go into. There are two types of crypto wallets: Wallet on your device, You download the program, register a wallet and receive keys, after which you can make transactions with bitcoin; Online wallet, register and that's it: all bitcoins are stored in the cloud. However, you need to understand that in this case, the service itself has access to your wallet.
What is bitcoin investment
There are two main and most common strategies for investing in Bitcoin. Positional strategy (strategy "for growth"). It's pretty simple. The investor acquires a certain amount of bitcoins for real money and expects an increase in the rate of the cryptocurrency. Sooner or later, the value of bitcoin will increase, and the purchased cryptocurrency can be sold several times more expensive. Here it is important not to "break down" ahead of time, noticing a short-term drop in the bitcoin rate. Trading on the stock exchange. The basic principles of cryptocurrency trading are similar to those used on the Forex exchange. Here, bitcoin has one key advantage: since the currency itself is not too common in Russia, not everyone knows the basics of bitcoin trading on the exchange. Accordingly, it will be enough for an experienced investor and player to simply "bypass" their competitors.
Can I convert Bitcoin to cash?
Yes, you can convert Bitcoin to cash. There are different ways to do it but the most popular one is via Cryptocurrency Markets like Binance, Gate io etc.
How does Bitcoin make you money?
There various ways to make money via Bitcoin. But, there some popular ways to bitcoin make you money such as Mining, Holding, Trading and Saving and Staking Bitcoin. There 2 different ways to mining Bitcoin; Personal mining and Cloud mining. Bitcoin Hold means getting bitcoin low price and waiting for such a long time to increase. The 3th way of bitcoin make you money is trading, you trade Bitcoin via cryptocurrency markets and you make a profit on this markets. The most underestimated way is saving and staking, like banks interest rate, most of cryptocurrencies has interest rates and you can easily make money by staking Bitcoin.
Is Bitcoin real money?
Yes, Bitcoin is a real money. Even if we couldn't see the Bitcoin physically, Bitcoin is exist in the digital world and you can make payments via Bitcoin like the real money.
Can bitcoin be banned
Yes Bitcoin can be banned by governments. Some countries have already banned Bitcoin. And some countries have also imposed restrictions. However, it is very difficult to ban bitcoin in developed countries.
Can bitcoin be controlled
No, Bitcoin cannot be controlled because of its decentralized habit. However, as in every investment instrument, manipulations and speculations can occur in Bitcoin.
Can bitcoin be hacked
Yes there is always posibility. As a rule, the safety of money is in the hands of the owners. Attackers can steal valuables from a real or virtual vault, bank account, safe deposit box or safe. Hacking a bitcoin wallet is getting a private key. It provides access to coins. It is almost impossible to guess the key, since SHA-256 encryption is used. It would take many years to crack this code on modern computers. It is easier for attackers to take advantage of the carelessness of cryptocurrency owners and lure out the necessary data.
Can bitcoin be mined
Yes, bitcoin can be mined. There diffrent ways to mine bitcoin, such as ASIC MINING, GPU Mining, CPU Mining, Mining Pools, Solo Mining and Cloud Mining.
Can bitcoin be regulated
Yes, bitcoin can be regulated, moreover, some governments already regulated it.
Can bitcoin be taxed
Yes Bitcoin can be taxed. The IRS believes digital money possessions to be "property" for charge purposes, and that implies your virtual cash is burdened similarly as some other resources you own, similar to stocks or gold.
Can bitcoin be traced
Yes, Bitcoin can be traced. Bitcoin addresses are a series of Latin letters and numbers and do not contain information about the names of their owners, thus creating a false sense of complete anonymity for users. However, transactions in the Bitcoin network are recorded without encryption, which means they can be traced.
Can bitcoin be trusted
When it comes to trusting, every investments has risk about that. So, this is the decision you should make individually. Before operating with large amounts, investing in Bitcoin, I would like to weigh all the pros and cons of cryptocurrencies and, in particular, bitcoin itself.
Can bitcoin expire
No, like golds bitcoin can not expire. However, you should keep in mind the number of bitcoin is limited.
Can bitcoin go down
Yes, Bitcoin can go down. There many different scenarios about that but we can simply say it depends on supply and demand. If there will be a suddent selling fluctuation the price will be go down. On the other hand, theoretically, for the maximum possible depreciation of bitcoin, something serious must happen, contradicting the fundamental values originally laid down in the protocol, said Dmitry Machikhin, CEO of Bitnalog.
can bitcoin go higher
Yes, bitcoin can go higher depends on market fluctuations.
can bitcoin go green
Yes, technically bitcoin can go green because it is produced in limited number.
Can bitcoin go to 1 million
Yes, bitcoin can go to 1 million. According to billionaire Barry Sternlicht, The Bitcoin exchange rate may rise to $1 million. Because, the government is just constantly printing money, but they will not be able to create even more bitcoins.
Can bitcoin go to zero
Yes, Bitcoin can go to zero. There are several factors that could theoretically lead to a drop in the price of bitcoin to zero, Sergey Arestov, co-founder of BitCluster, explained: A group of miners will switch to themselves 51% of the power and sabotage; Someone will develop an ASIC chip that will pick up 500 trillion seed phrases per second; A total blackout will happen on earth and there will be no electricity; Miners will refuse to process transactions; The internet is going down globally.
can you bitcoin mine on a gaming pc or a laptop
Yes, technically you can mine bitcoin on a gaming PC or a laptop. If you have a computer that meets the minimum system requirements, you can mine bitcoin by downloading various applications to your computer.>
Can you bitcoin mine on android or ios or with a phone
Yes, in theory, bitcoin mining on an Android or iOS phone is possible using special applications that can be downloaded from Google Play or the App Store. But in practice, bitcoin mining on Android or iOS is not possible. This is due to the high power of the cryptocurrency payment network. As of 2020, the computing power of the Bitcoin network is 2.5 TH/s (2.5 trillion hashes per second). That is how much it takes to get a block and get a reward in the form of new issued coins. Whereas a modern smartphone is capable of providing a maximum computing power of 14 H / s. It is clear that this power is not enough to earn some decent amount, even if the phone will mine crypto around the clock for many years. Theoretically, modern smartphones could profitably mine bitcoins, but only if it were now 2010, when the power of the network was not yet so high. Today, bitcoin mining on an Android or iOS phone, even on the most modern models, is a utopia. But the developers of mining applications on Google Play and the App Store are trying to convince the opposite.
Can you buy bitcoin with a credit card
Yes, you can buy bitcoin with a credit card on cryptocurrency markets such as binance.
Can you buy bitcoin with cash
Yes, you can buy bitcoin with cash in different methods. But most popular method is buying on cryptocurrency markets such as binance.
Can you buy bitcoin with paypal
Yes you can purchase bitcoin with paypal, if you have a valid paypal account.
Can you go short on bitcoin
Yes, you can go short bitcoin. Most of cryptocurrency markets provides this service.
Can you mine bitcoin with gpu
Yes, you can mine bitcoin with GPU. Although GPUs do not have a large number of cores, they can still perform parallel multi-threaded computations.To start mining on an integrated video card, it is necessary that the system support for multi-threaded computing technology (for example, OpenCL) is installed for it. Software that allows access to OpenCL technology in Intel processors has been around for quite some time. There are two possibilities to run opencl applications on Intel processors - on the integrated video core (if any) and on the cpu cores. For the on-chip video core processor, support for multi-threaded computing is available from the sixth series of Intel Core (CPU with HD Graphics core).
Can you use bitcoin as collateral
Yes, you can use bitcoin as collateral. A cryptographic money upheld credit involves computerized cash as guarantee, like a protections based advance. The essential rule works like a home loan credit or car advance — you vow your crypto resources for get the credit and pay it off after some time. You can help this sort of credit through a crypto trade or crypto loaning stage.
Can you use bitcoin as real money
Yes, you can use bitcoin as real money. There many places that you can buy something by bitcoin or using other cryptocurrencies.
Can you use bitcoin on amazon
No, for now Amazon supporting bitcoin as a payment system however, there some places that you can buy amazon gift cards by using bitcoin.
Can you use bitcoin on ebay
No, you cannot use bitcoin as a valid payment method on ebay.
Can you use bitcoin to buy things
Yes, you can use bitcoin to buy things on stores which support the bitcoin payments. There ara many places that support bitcoin as a payment system, for example KFC.
El Salvador and Bitcoin
In early September, a law came into force in El Salvador giving the first cryptocurrency the status of legal tender on a par with the US dollar. On the same day, the country's authorities purchased 550 bitcoins, after which its president, Nayib Bukele, announced the purchase of another 150 bitcoins. El Salvador now holds more than $35 million worth of cryptocurrencies (at the current asset price of about $50,000).
In the country, prices can be set in bitcoins, taxes can be paid in them. Cryptocurrency exchanges are not subject to capital gains tax. The acceptance of bitcoins for payment became mandatory, and the government also created an official Chivo crypto wallet.
“El Salvador’s bitcoin game looks like good PR”
If El Salvador manages to build a reliable crypto-fiat gateway, the country can become the Panama Canal in the field of crypto-currencies, an incubator for crypto-banks, funds and other interesting projects, BitCluster co-founder Sergey Arestov is sure. According to him, if Nayibu Bukele manages to attract major players, then real assistance to the economy can become tangible.
“However, for now, El Salvador’s bitcoin game looks like good PR. Mining alone on a volcano is worth something, ”the expert emphasized.
At the end of September, one of the Salvadoran power plants, which uses geothermal sources to generate electricity, began to connect equipment for bitcoin mining. Bukele showed footage of power plant employees plugging in ASIC miners and shipping containers of equipment arriving at the facility.
The country's budget will be replenished from income from mining farms located on geothermal sources, said Ivan Sharov, CEO of the online store for mining equipment and computer components Hardvar.ru. However, according to him, it is too early to use cryptocurrency as a means of payment due to its huge volatility.
So, in early September, the bitcoin rate fell by 16% per day, falling below $43 thousand. And less than a month later, on October 5, the value of the asset again exceeded $50 thousand. The price of the cryptocurrency is subject to high fluctuations, and no one can know exactly what it is will be the next day.
“Citizens were allowed to use bitcoin as an indulgence”
El Salvador is one of the poorest countries in the world, it did not have the funds to create its own fiat currency, which is why it was decided to use bitcoin, says Artem Deev, head of the analytical department at AMarkets. According to him, Bitcoin payments help to reduce the costs of various payment services and transfers.
“Citizens of the country were simply allowed to use bitcoins as a kind of indulgence, to simplify settlements and transfers,” Deev explained.
The government's decision to diversify its foreign exchange reserves by adding a new innovative currency, bitcoin, seems quite logical, added Vitaly Kirpichev, Development Director of TradingView in Russia. In his opinion, the next step could be the adoption of cryptocurrencies by trading partners of El Salvador - Guatemala, Nicaragua, Honduras.
Given the price dynamics of bitcoin since its inception, the country sees the investment attractiveness of the cryptocurrency and expects a long-term effect, Kirpichev noted. He believes that if a favorable environment is created in El Salvador for the development of trading in bitcoin and other cryptocurrencies, then large investments can go to the country.
Bitcoin, despite its high level of volatility, can help fight the deflation of the local currency and the impoverishment of the population in the short and long term, Valeria Minaeva, business development and communications specialist at 1inch Network, is sure. According to her, bitcoin is able to attract new interesting projects to the country, as well as rich people from all over the world who will be happy to pay with cryptocurrency.
“So far, of course, this is an experiment for the entire world community, but, in my opinion, this is an extremely intriguing and potentially very profitable experience for the country,” Minaeva concluded.
Bitcoin Solana and Ethereum
The broader crypto market is seeing recovery trends from the September lows that have driven up the price of the top coins. Bitcoin, Ethereum and Solana have recorded some of the biggest gains so far. This happened due to a number of factors that greatly influenced the movement of cryptocurrencies. Bitcoin in particular has witnessed the most significant price swings, with Ethereum and Solana not too far behind. Institutional investors are back on the “bull train”
Institutional investors are a big reason behind the recent price rally. The crypto market has recorded inflows totaling more than $600 million for eight weeks in a row. The market has benefited greatly from this as the top coins have risen to new heights in recent weeks. Bitcoin alone has gained $225 million in the past week, while altcoins have seen a couple of million inflows in the same time frame. Additional information | According to founder Vitalik Buterin, the big difference between Bitcoin and Ethereum This signals that institutional investors are starting to return to the market en masse, and it strengthens faith in cryptocurrencies where before. there were so few. Solana and Ethereum were the leaders in altcoin influx during this period. Both altcoins led the altcoin market in terms of recorded profits. Both assets are aiming for their previous all-time highs.
Where to buy Bitcoin
|On Which Exchanges Is Bitcoin Listed?|