March 22, 2021 | AtoZ Markets – Despite Bitcoin’s (BTC) growing adoption, the flagship cryptocurrency is still a bit of an enigma for some people. If this is you, we’ve answered the 20 most important questions you’re likely to have about BTC.
1. What is Bitcoin (BTC) and why is it Gaining Importance in Today’s Financial Industry?
BTC is a cryptocurrency that works in much the same way as normal money with the difference being that it is not found in physical format and is available on a public ledger that everyone has access to. This means private institutions and governments hold no authority when it comes to cryptocurrencies as opposed to the full control they have when it comes to traditional currencies.
2. How can I Make Money with BTC?
You can make money with BTC in a variety of ways. The most relevant and easily accessible ways are by mining, buying, holding (Hodling) and trading BTC. BTC mining is when users solve complex mathematical problems and as a reward, they get new BTC. Holding and buying BTC is a simple way you can make money with this cryptocurrency. All you need to do is buy BTC and store it in your wallet and just wait for the price to skyrocket so you can sell. Trading BTC is a faster version of this, allowing you to earn money as you take advantage of BTC’s highly volatile nature.
3. Who Created BTC?
It is still a mystery. Satoshi Nakamoto is the pseudonym used by the person who developed BTC and created the white paper on this revolutionary currency way back in 2008. There are a lot of rumours surrounding the identity of Satoshi however none have been verified and his identity is still anonymous until today.
4. What Fees are Involved with BTC Transactions?
Processing transactions and adding them to the blockchain costs miners (powerful computers) a huge amount of power and energy and so a financial cost must be paid. Fees can fluctuate depending on market demand and network capacity. The amount you pay per transaction is determined by how much you’re willing to spend. The higher you are willing to pay, the faster the transaction will be processed.
5. How do I Buy BTC?
You can buy BTC easily through a BTC wallet which is where your BTC can be stored before you spend it. Make sure you use a fully secure wallet such as Zeply to buy, sell and send BTC.
6. Is Bitcoin Safe?
While cryptocurrencies are considered high risk due to their volatility, your bought Bitcoins are only as safe as the wallet you are using to store them. This is why it is very important you choose an exchange like Zeply that places safety and security as a priority.
7. Is BTC Legal?
Yes, in most countries BTC is legal. As of today (February 2020) Bitcoin is legal in the U.S., Japan, the U.K., and most other developed countries. In certain countries such as China and India it is heavily restricted, so it is best to check the laws in specific countries. In the emerging markets, the legal status of Bitcoin still varied dramatically. China heavily restricted Bitcoin without criminalizing the holding of bitcoins.
8. Is Bitcoin Anonymous?
Bitcoin in the early days was synonymous with purchases on the black market due to its anonymity. However, today Bitcoin.org states that BTC allows its users to send and receive payments with an acceptable level of privacy. Nowadays it does not offer complete anonymity but is much more secure than in the earlier days.
9. What Happens if I Lose my BTC?
A transaction cannot be undone and reversed by Bitcoin. The only solution would be to ask the person who received the funds to refund them for you. Bitcoin, however, can recognize typos in addresses and it is impossible for you to send funds to an invalid address. It is very important to use a wallet with added security. Zeply is a custodial wallet meaning that users will always have access to their account with no chances of losing your funds due to private key loss. Furthermore, cutting-edge tech coupled with high-security features such as 2-Factor Authentication makes it the ideal place to execute all your BTC transactions.
10. What is a BTC Wallet?
A BTC wallet is a software program that allows users to store Bitcoins. Zeply not only stores Bitcoins for you but allows you to buy and sell as well as receive and exchange Bitcoin.
11. Can BTC be used in the real world?
Yes! Bitcoin is becoming more of an everyday accessory. As the price continues to peak popularity grows by the day. The best thing is retailers and big players are now accepting the digital asset as a form of payment. See the world and book those much-needed flights and hotel breaks, if you are foodie and love nothing more than going out for a bite BTC is being accept in many outlets including Burger King. Several online payment platforms are now incorporating crypto features with financial giants such as PayPal, Revolut and Square’s Cash jumping on the crypto wagon.
12. How do BTC Transactions work?
In order to send BTC you need to have a public and private key. The private key gives you access to your own funds and allows you to withdraw or deposit funds. The public key on the other hand is the information you need to be able to send and receive funds.
13. What is a BTC address?
The Bitcoin address is an identifier of 26-35 alphanumeric characters that is given to the users once you sign up to wallets such as Zeply. It is different from the public key as the BTC address is similar to an email address however the public key is used by Zeply to make different addresses.
14. Why should I get involved?
Well, mostly because there are ground-breaking ways that you can make money. It is also set to become the currency of the future, with its main advantage being a decentralized structure (giving control back to the public) but retaining the same beneficial features as traditional currencies.
15. Who Controls BTC?
The beauty of Bitcoin is that no one controls this currency. Bitcoin is the first decentralized peer-to-peer payment network and is fully controlled by all the people who choose to use it. There are no middlemen or central authorities such as banks and governments controlling this currency.
16. Is BTC real Money?
Why not? While it does not have a physical form like coins or notes, it operates in much the same way and can be used to purchase physical items as well as services in the same way as using online credit cards.
17. How does BTC differ from Fiat?
Cryptocurrencies and fiat money’s main difference is that fiat money is issued by central banks and government while cryptocurrencies are decentralized. Having said that, both can be used for payments and are a store of value.
18. What is a BTC ATM? Where can they be found?
A Bitcoin ATM is an Automated Teller Machine (ATM) that dispenses Bitcoin. A person can buy Bitcoin by using cash or a debit card from this kiosk. Some Bitcoin ATMs offer bi-directional functionality enabling both the purchase of Bitcoin as well as the sale of Bitcoin for cash. You can find the nearest ATM by tracking kiosks on websites such as Bitcoin ATM. Map
19. What Determines BTC Price?
Bitcoin is notorious for its volatility. The perceptions of the value given to this currency vary largely and so this drives the price to either plummet or skyrocket within minutes because of such speculation.
20. Is the Finite Amount of BTC a Limitation?
Definitely not. Like any currencies before it this is what drives the value of Bitcoin. In basic economics when you have a limited supply of a resource it drives the price to be higher. Only 21 million Bitcoins can be mined. In total with $18.5million Bitcoin has already mined.