Bitcoin (BTC) Beginner's Guide – Learn the Basics of Bitcoin

Will Bitcoin become worthless?

Yes. History is littered with currencies that failed and are no longer in use, such as the German Mark during the Weimar Republic and the Zimbabwean dollar more recently.

What determines the price of Bitcoin?

The price of Bitcoin is determined by supply and demand. When the demand for Bitcoin increases, the price of Bitcoin rises; when the demand decreases, the price falls.

Why is Bitcoin valuable?

Bitcoin has value because it is useful as a form of money.

How did Bitcoin come about?

New bitcoins are created through "mining," a competitive and decentralized process.

Introduction to Bitcoin and Consumer Protection

Bitcoin allows people to trade freely in their own way. Every user can pay and receive money just like using cash, while also being able to participate in more complex contracts.

What does Bitcoin have to do with taxes?

Bitcoin is not legal tender and has no legal tender status in any jurisdiction, but is often subject to tax obligations regardless of the medium used.

The Bitcoin protocol itself cannot be modified unless nearly all users collaborate to choose which software to use. It is impractical to try to give a regional authority special power in the rules of the global Bitcoin network.

Is Bitcoin useful for illegal activities?

Bitcoin is money, and money has always been used for both legal and illegal purposes.

Is Bitcoin legal?

As far as we know, Bitcoin is not illegal in most jurisdictions by law. However, some jurisdictions (such as Argentina and Russia) severely restrict or prohibit foreign currencies.

Can Bitcoin scale up to become a major payments network?

The Bitcoin network is already capable of processing a much higher number of transactions per second than it currently handles, but it is not yet fully mature enough to scale to the same level as the major credit card networks.

What happens when Bitcoin is lost?

When a user loses his wallet, the consequence is that the funds in it are taken out of circulation. The lost bitcoins still exist in the blockchain like other bitcoins.

Is Bitcoin anonymous?

Like any other currency, Bitcoin is designed to allow its users to make and receive payments with an acceptable level of privacy. However, Bitcoin is not anonymous and therefore does not offer the same level of privacy as cash.

Is Bitcoin completely virtual and immaterial?

Bitcoin is virtual, just like the credit cards and online banking networks people use every day. Bitcoin can be used to pay for things online or in physical stores just like any other form of currency.

Can you make money with Bitcoin?

You should never expect to get rich from Bitcoin or any emerging technology. It is always important to be wary of anything that sounds too good to be true, or that goes against basic economic laws.

Why do people believe in Bitcoin?

Much of the trust in Bitcoin comes from the fact that it requires no trust at all. Bitcoin is completely open source and decentralized, meaning that anyone can view the entire source code at any time.

What are the disadvantages of Bitcoin?

Adoption - There are still a lot of people who don't know about Bitcoin. Every day more businesses are accepting Bitcoin because they want to benefit from it, but the list is still small and more businesses still need to support Bitcoin in order to benef