About bitcoin all 72 questions are here

About bitcoin all 72 questions are here

The following is all about bitcoin problems and you want to know the answer!

1, what is bitcoin? Bitcoin is a decentralized, peer-to-peer electronic payment system, not by the Federal Reserve or the Treasury that the central authority of the supervision. Bitcoin can be called digital encryption currency or currency, but the majority of investors will not bitcoin as a currency for payment. On the contrary, they will bitcoin as a speculative investment, hope that through bitcoin earnings. Investors may obtain great profits (may also cause great loss).

2, what is the support for bitcoin? The core principle is “bitcoin blockchain, each block corresponds to a bill, will link all of the blocks is block chain, any transaction information and transfer records are recorded in the block chain. Note that the block chain exists in the whole Internet, all the miners visible, everyone has a copy of the entire chain, so it can not be a single individual manipulation.

3, who is in control of bitcoin? Bitcoin is decentralized, which means that no one is in charge of the central authorities or agencies bitcoin. Bitcoin is a pseudonym Nakamoto who created in 2009, but no one knows the true identity of the person or group now, bitcoin has no control over.

4, how to evaluate the value of bitcoin? Fluctuations in the value of bitcoin on sale, like stocks, but for the price of bitcoin represents what are hot. In theory, the value of bitcoin should reflect investors for bitcoin as a confidence. But in fact, most investors will bitcoin as a commodity, because of its limited supply. Nakamoto So will be the total supply of bitcoin is limited to 21 million. At present has produced 16 million 700 thousand. Each of the miners in a new block uploaded to the block chain, you can get a new minimum number of coins as a reward.

5, bitcoin is a hoax? Bitcoin is not a hoax. Bitcoin is a legitimate technology. The problem is that it can be useful and valuable.

6, there is no real currency called bitcoin? No You can’t touch bitcoin, because it is actually software. You may have seen similar bitcoin gold pictures on the Internet, but those are souvenirs, cannot be converted to actual bitcoins.

7, bitcoin as tangible as gold? There is a great similarity between bitcoin and gold, that investors think it can well preserve value. You can download a series of digital encoding to a U disc onsomething bitcoin. But you can’t touch the gold touch like bitcoin and bitcoin is not shining.

8, the value of bitcoin is completely determined by the free market? In most cases is the. Bitcoin supply is limited, so when demand rises, the price also rose. Technology innovation can also contribute to the value of bitcoin. When bitcoin was created in 2009 and new things, now the market believes bitcoin some money.

9, bitcoin does not exist in the real world, it is to have monetary value? In fact, bitcoin exists in the real world, just like your mobile phone operating system or computer, it is actually software. Obviously, some kinds of software is valuable.

10, if it is virtual, bitcoin can be copied? Yes。 All bitcoin transactions are stored in the public ledger, is also the block chain. You can copy the block chain, but this is only a record. Therefore, you can not change the distribution of bitcoin.

11, bitcoin is legal tender? In the United States is not. For example, in the United States, the merchant must accept dollars to become legal tender. The United States government to allow bitcoin transactions, but does not need all of the auto dealers or restaurants to accept it. But they have to accept dollars. At the same time, Japan, Australia and other countries have official acknowledged that bitcoin is a legitimate currency.

12, what is behind bitcoin collateral? What is not. All transaction history record bitcoin bitcoin block chain, and through the effective proofreading. But this is not the collateral. Behind bitcoin no other tangible assets, like a car car as collateral for the loan, mortgage or housing as collateral.

13, who tracks each bitcoin? All the maintenance system of miners.

14, how do you sell bitcoin? Now there are many convenient trading platform, mainstream bitcoin trading platform is the most popular international BtcTrade station (btctrade.im)

15. What is your actual purchase? In fact, you buy is an electronic key (key), it is a string of numbers and letters, only ownership can give you support bitcoin blockchain. You can put this in any asset market price minus the transaction costs of bitcoin to others.

16, bitcoin can buy in the ordinary brokerage account? At present, the traditional brokerage companies such as Vanguard, Fidelity and Schwab are not. But with bitcoin value securities, such as bitcoin Investment Trusts (BitcoinInvestmentTrust), you can buy through the traditional brokerage company. But this did not make it more secure than bitcoin, in fact, most of them are volatile, and there is no good to track the price of bitcoin.

17, how much money you need to start? Don’t need a lot of. You can BtcTrade the international station to buy $1 bitcoin, Wright coins or etheric fang.

18, bitcoin can buy only part of it? Yes。 A bitcoin can be divided into 8 decimal point, or 0.00000001 coins. This is equivalent to 1/1000000 coins. Such a unit is called Nakamoto, a tribute to the founder of bitcoin. If a bit value of $15000, a value of this hearing will be 0.15 cents.

19, bitcoin transactions can be traced back to you? Yes。 Any person who traded in the bitcoin trading platform must provide their personal information in this transaction. If you need to know about the law enforcement agencies, trading platform will have to provide legal information needs. But your personal information will not become a part of the blockchain, will not be to maintain the blockchain miners see. If you point to point private deals with another person, that person may know you, but other people do not see the transaction information.

20, when I buy encryption currency, where my money go? When you buy a bitcoin or any other encryption currency, people will sell it to you, so you most of the money to the seller. The trading platform may also charge a high transaction cost. Bitcoin miners due to the maintenance of the network collects a fee, but rarely.

21, bitcoin is real money? What can I think of when kept on what time deposit? Bitcoin value can be converted to a common currency, or buy something from the hands of the seller who accept bitcoin. Therefore, in this sense, bitcoin is real money. Let bitcoin into cash, you need to sell it to someone in exchange for dollars or other currencies. Bitcoin transaction processing platform often experiences congestion, so that some people can not close their accounts in a period of time or the execution of the transaction, especially when bitcoin prices experienced sharp fluctuations. So, don’t think what time you can sell bitcoin.

22, in addition to the scarcity, the value of bitcoin is based on what? Both parties think bitcoin based on how much money. In other words, there are psychological factors.

23, how bitcoin was stolen? Bitcoin blockchain itself is very safe, but if a thief can get into your account, and you will be transferred to their bitcoin account control, bitcoin can be stolen from your account. Once bitcoin can not be transferred again. The thieves often steal through the login and password information into the account of others. Therefore, all possible measures to protect the vital bitcoin account, including two authentication for mobile phone. You can also have a “private key”, this is the third layer of protection.

24, bitcoin how to generate revenue? The miners created bitcoin money — a bitcoin payment, and pay the required mining this procedure time and computer power cost. They are from bitcoin users rarely make money transaction fee. Bitcoin itself does not generate income. It is regarded as a commodity, and gold is similar to the market value but does not produce economic activity. When the bitcoin value rise, bitcoin will generate profits. But when bitcoin values fall, will produce the loss.

25, in the black market transactions bitcoin value? Yes。 Because bitcoin transfer can not be tracked, bitcoin is often used to buy drugs or financing for some criminal activities. But it also has a legitimate use, can be paid to any person to accept bitcoin. Some people think that bitcoin is a store of value.

26, bitcoin and other encryption currency what is the difference? It depends on what you want to know the money. Some crypto currencies, such as bitcoin, bitcoin cash or gold coins Wright, from the main bitcoin encoding difference. There are also some encryption currency has its own block chain, such as Ethernet square or reboxetine currency (XRP)

27, why the price of bitcoin Volatility? Because a lot of money into a relatively small market, in addition, bitcoin trading is more difficult than trading stocks or commodities, but also increases the complexity of.

28, bitcoin volatility in a large extent is because beluga (whales) affect the market price, the extent to which it is because new investors or outside investors? A lot of bitcoin bigwigs hold is usually called Moby dick. Peng Bo reported that about 40% of bitcoin is held nearly 1000 people, many people think that these whales collusion affect bitcoin prices, but there is no evidence. Bitcoin blockchain trading is open. Block chain shows that large transactions occur every day, but these transactions are not sufficient to produce we see huge fluctuations.

29, bitcoin bubble? No one can be sure. In recent months, the price certainly soared like a bubble. Many buyers have recently hope bitcoin, not because of its intrinsic value, but only because they think that bitcoin will rise. This is speculation, speculation will often lead to the bubble. But it is also possible that bitcoin is a real innovation, help to change the financial system. It is worth mentioning that the emergence of the Internet has led to the last century of the Internet bubble in 90s, but now the Internet still exist, and some time the collapse of the company has been ranked the world’s most valuable company.

30, if the bitcoin bubble really is broken, all encryption currency crash or only bitcoin? Encryption currency tends to move in one direction. But they are not as closely related. Of course, if bitcoin huge shocks, usually have a ripple effect. If bitcoin fell 90%, probably the other encryption currency will follow. The real test is what kind of encryption currency will survive the price slump, like Amazon, eBay and Priceline survived after the bursting of the Internet bubble.

31, some have claimed bitcoin will rise to $1 million, or bitcoin will fall, not worth a hair. Which is more likely? These two cases are not possible, or may. Bitcoin may rise to 1 million dollars and then plummeted. No one knows bitcoin to what level, may bitcoin has reached its highest point. But the possibility of bitcoin is not worth a hair, unless the occurrence of catastrophic accidents, for example, found the fatal flaw in the bitcoin encoding.

32, what is the risk? Bitcoin may demand destruction, let prices fall. Perhaps the supervision of technical problems, intervention, or due to the bitcoin consumption of huge negative image. Perhaps something completely unexpected.

33, should I use bitcoin hardware wallet? Good idea.

34, how can we find the bitcoin company? They don’t reply. For many loyal supporters of bitcoin, a big advantage is that bitcoin to the center of the lack of central authority supervision. In reality, such as BtcTrade international trading platform for customers who have the reply is actually beneficial for themselves, but most of these companies are emerging companies. You can only give them the pressure, they will become better.

35, there is no customer service by phone? This is really a novel idea. So far, if the problem is your account security, you will probably have received phone calls from BtcTrade international customer service station.

36, whether the government ignored? Maybe not. To some extent, the government has been involved, such as the United States government to allow bitcoin futures trading. Bitcoin will become a more integral part of the financial system, bitcoin will be more regulation. But this is not necessarily a bad thing. Some bitcoin investors believe that if the government more supervision of bitcoin, which may legalize bitcoin and extend its application.

37, crypto currency will replace the dollar and other currencies? Crypto currency may be able to obtain share in the money market, especially if the U.S. government expressly authorized some encryption and allow people to use their money to pay tax. But even so it is difficult to replace the dollar currency — the world’s most trusted.

38, whether money will destroy the encrypted global market? Can’t, Kay cast a macro recently released analysis report shows that even if bitcoin plummeted, will not have a significant impact on the overall financial market. Although bitcoin has attracted worldwide attention, bitcoin market is still small, and the encryption currency is not included in the real economy or banking system. Bitcoin prices fell to zero — out of all — the equivalent of 0.6% of the stock market callback. A part of the family expenditure may be affected, some people may suffer loss of millions of dollars. But many people hold a large number of bitcoins are early investors, buying bitcoin price is very low.

39, using encryption currency can buy what products or services? Despite being the best use of encryption currency, bitcoin is not to buy things. Investors may eventually bitcoin mainly as a store of value.

If you have to buy things with bitcoin, you can use bitcoin in Zynga, Overstock.com, Newegg.com, Expedia.com and Microsoft’s online shopping platform now. If you want to book travel, CheapAir.com accepts encrypted currency of payment. You can buy a gift card on the eGifter website.

You can also buy more expensive things with bitcoin, such as the Milky Way space Travel Company Virgin (VirginGalactic) will accept customers to pay with bitcoin space travel expenses. The United States is one of the largest jewellery chain REEDSJewelers also accept bitcoin payments.

40, I can treasure in the self-help decoration retail businesses (HomeDepot) using bitcoin? Cannot be used directly. But in the home depot slowly with other retailers, is the most famous American electricity supplier: shopping business Overstock to accept bitcoin payments; Microsoft’s Xbox store, PayPal and the U.S. mobile payment company Square to accept bitcoin payments.

41, in the ordinary retail stores, bitcoin may become the currency? It depends on what retailers get. If consumers found bitcoin than the current payment means cheaper and easier to use, bitcoin may retailers are willing to accept, in order to obtain the competitive advantage. If bitcoin transaction cost cheap credit card, retailers will even encourage customers with bitcoin payment. But more stable in the price of bitcoin, bitcoin is commonly used seems unlikely.

42, what is the reason for a typical customer will be more inclined to use encryption currency rather than a credit card? So far, no, unless you wish to remain anonymous. But bitcoin can ensure the anonymity and security of electronic transactions.

43, what percentage of global economic activity is the use of encryption currency? Very small. But bitcoin is a large part of the criminal activities of financing.

44, how do you track different encryption currency? There is no price? Yes。 YAHOO currently offers more than 100 kinds of encryption currency comprehensive and free tracking tools, each encryption currency has a quote machine. Most people don’t even realize that there are so many encryption currency.

45, in terms of investment, more like stocks or crypto currency currency? This is very complex, because bitcoin and other encryption currency has the same characteristics with stock or currency. People often will be compared to third types of encryption currency – gold. This is why you sometimes hear someone encryption currency called “digital assets” or “digital gold”.

46, bitcoin ETF (exchange traded funds) possible? May. The United States government recently allowed bitcoin trading futures, this may be a precursor to ETF will be listed on the main exchange. Bitcoin ETF must be approved by the U.S. Securities and exchange commission. This may be a year or even longer.

47, encryption monetary transaction value why there is a huge difference? First, different encryption currency transactions according to their own dynamic. The number of encryption currency unfinished is different, different, different operation rules. When bitcoin fluctuations intense, will have spillover effects, other currencies will fluctuate with the encryption. However, with the effect of encryption currency, has weakened.

Another problem is that in every kind of exchange, the same encryption currency transaction price difference is mainly bitcoin market. This is mainly because of the relatively high cost of arbitrage buying assets at low prices to sell at high prices trading platform, trading platform. As long as the most liquidity trading platform is relatively low and high transaction costs, these differences will continue.

48, need to be reported to the IRS bitcoin (IRS)? The IRS will bitcoin as possessions, like real estate or stocks. If you trade bitcoin, so this is like the sale of shares. Any gains or losses are subject to capital gains tax related constraints.

49, whether can be put into the retirement savings of encryption currency? Lose all you lose? If not, stay away from crypto currency.

50, if I am not my retirement savings in the 5% encryption currency, will not regret? If you think that a small part of the high risk investment products on your savings OK, then do. But again, unless you can afford to lose all the money, or not to do so.

51, in the actual purchase how to contact the crypto currency encryption currency case? Investors can trade options in the bitcoin bitcoin derivatives trading platform Ledgerx, can also be in the Chicago Futures Exchange (CBOE) and the Chicago Mercantile Exchange (CME) bitcoin trading futures. In CBOE, a bitcoin contract on behalf of a bitcoin price. In CME, a bitcoin contract on behalf of the 5 bitcoin price. CBOE and CME are in cash settlement.

52, bitcoin slump will affect the traditional investment? Who said that bitcoin will collapse? But if you’re worried about bitcoin will fall, the good news is: capitaleconomics report shows that bitcoin and other risk assets (such as stocks) there seems to be no correlation. Although the stock market prices slowed in recent weeks, bitcoin continues to rise. As mentioned earlier, bitcoin usually compared with gold, but apparently not bitcoin “hedge” assets. Although the price of gold last week dropping, crypto currency prices continue to rise. As capitaleconomics said, bitcoin is the world of its own”.

53, why Jack Berg founder of the vanguard group (JackBogle) and JP Morgan CEO Jamie Damon (JamieDimon) told investors away from bitcoin? Because they think bitcoin has no intrinsic value, bitcoin prices just because buyers believe that people will buy bitcoin prices than they currently pay higher. In their view is a bitcoin expected one day will collapse, investors will lose most of their investment — if not all.

54, how to treat the bitcoin bank? Friends? The enemy? Partner? The bank is not bitcoin fans. JP Morgan bitcoin hostile. Citibank skeptical. Goldman to curious attitude. But almost all the big banks brokerage office, the office is currently trading bitcoin bitcoin futures exchange member. These futures contract will eventually bitcoin to Wall Street. But bitcoin needs time to win the trust of the Wall Street brokerage. Prior to this, the trading volume of bitcoin futures contracts will be very low, because most of the transactions occurred in retail investors, rather than institutional investors.

55, there is no trading of a listed company encryption currency? In the United States is not a well-known, perhaps abroad. However, more and more companies to join the “block chain” in their name, and claimed that the investment block chain technology, mining operation and specific encryption currency, causing the share price soaring. On-Lineplc is a company on the London Stock Exchange (LSE) listed companies, the company recently will “blockchain” this noun joined the company, between the company’s market value of over four times a night. The future may have a large Wall Street brokerage of listed companies become bitcoin futures traders, but it hasn’t happened.

56, how to affect the ability of the state to the bitcoin income tax? If bitcoin can become a huge black or grey income from the underground economy, the government will have to use power and limit bitcoin ban.

57, there may be due to a virus or hacker, all money will disappear? When the design of the bitcoin network itself, there is this possibility, but it is unlikely.

Bitcoin’s weakness in personal transaction level, such as three years ago, when the world’s largest bitcoin trading platform MtGox announced that due to “hacker attacks” bankruptcy; South Korea bitcoin exchange Youbit in December 19th this year due to a “hacker attack”, the self declared bankruptcy. Youbit announced the specific procedure of bankruptcy liquidation, the user in December 19th at 3:00 in the morning before the assets, due to hacker attack damage, will return according to the proportion of 75%. Deposited after 3:00 in the assets will be returned to the user according to the proportion of 100%.

58, block chain will disappear? If all the replication block chain have been removed, the entire block chain will disappear. But this is not possible. It may be because of an invalid or block chain design makes part of the block chain disappear. For bitcoin “work” (proofofwork), to deal with the miners to win a new bitcoin and transaction costs. Everyone should follow the requirements of the longest chain block.

59, when the 21 million bitcoin limit occurs, bitcoin supply will increase? If possible, at least 51% bitcoin miners agreed to amend the rules. One worry is that at the end of a bitcoin out, those who maintain network miners will quit, because they can only earn a small amount of money from the transaction costs, it may not be worthwhile for them. Sellers also have the right to speak, because they are willing to pay depends on their. To some extent, bitcoin market will evolve into any producer, consumers, sellers and other market intermediaries.

It is not eager to decide. As expected the miners until 2140 finally dug a bitcoin, 123 years ago there.

60, if I needed money, money will be encrypted into cash easily? Not so easy as you think. Bitcoin liquidity unlike other investment, in part because the settlement may be more than a week. If you can’t close your account you can’t sell. If there is an interruption in the panic, some bitcoin holders may have a very long time to sell when prices fall, this will lead to bitcoin holders suffer greater losses.

61, the banking sector will adopt bitcoin in their business? Or they are more likely to develop a new encryption currency? The bank will do what is in their interest. There is not a big deal of money market liquidity, encryption. The new bitcoin futures for institutional investors might be big enough. At this point, the big banks will gradually dominate the bitcoin market and other encryption currency market.

If the banks should develop a their own encryption currency, like Ethernet square, based on Intelligent contract may have. This will allow them to develop and control token offering financing (ICO) program, it may come from the U.S. Securities and Exchange Commission regulation. This is just speculation, at least a few years.

62, how do we make money into our 401 encryption (K) pension plan? The implementation of the 401 (K) finance company pension plans to allow the use of encryption currency and a period of time. There is no mainstream mutual funds or ETF allow such investment.

63, there will be another encrypted bitcoin currency to replace? Yes, depending on how you define “replace”. Some bitcoin trading platform service interruption, so that some bitcoin miners in the beginning of this year to deal with these things. In August 1, 2017, the original bitcoin chain to create a new block chain assets based on it is bitcoin cash. At present, according to the market, bitcoin cash is the third largest encryption currency. Each month there will be a new crypto currency into the market, they may not be able to replace bitcoin, but they do bitcoin dominant threat.

At present, bitcoin is the only futures contract is perhaps the first encryption currency in the main exchange launched ETF encryption currency. But if the bitcoin network cannot follow the bitcoin craze, users have hundreds of encryption currency options, such as Ethernet square, reboxetine currency (Ripple), Wright coins and bitcoin cash.

64, how many people are there bitcoin trading? Bitcoin market what open market? There is currently no way to determine how many people bitcoin transactions at any given time of the global trading platform. But we know that the first bitcoin transactions mainly in the western, but now most of the transactions occurred in Chinese. But with bitcoin is more and more popular, the number of US dollar account is on the increase.

65, to buy bitcoin, how to buy other encryption currency in dollars? It depends on what the exchange traded currency, they accept the encryption, payment of dollars, Renminbi or bitcoin.

66, how to dig bitcoin? Through the purchase of expensive ASIC equipment, or download a mining application software on a computer, this is a very slow way at present to dig bitcoin.

At one point in time, the bitcoin system will generate a random code in the system nodes, all computers in the Internet can find this code, who find this code, it will generate a block, then get a bitcoin, this process is often said. This calculation requires a large number of random code GPU operation, so as to get faster bitcoin profit with the miners purchasing mass card.

67, why to dig bitcoin to use the card? When 2009 bitcoin was created, the miners soon discovered that GPU (graphics processing unit) than the computer running CPU (CPU) is much more efficient. Today, the use of ASIC ore mining miners.

68, I have a fast computer, I want to dig bitcoin and other encryption currency. How should I do? You may have a fast computer, but unless the processor to dig bitcoin is the best, otherwise you dig bitcoin is not enough for you to dig bitcoin electricity costs. As a kind of powerful processor for ASIC thousands of dollars, the amount of money set as encryption specific, which is called “mill”. But if you decide to use your computer to dig bitcoin mining software, there are several options available to you.

69, block chain data will grow indefinitely? As long as there is the bitcoin. Bitcoin ledger every transaction will increase to the cumulative.

70, when all coins were dug up after the miners how to get paid? They will get paid by the transaction fee, which is determined by supply and demand. There is a theoretical upper limit of transaction costs, some people worry that if the miners did not receive appropriate compensation, bitcoin network will become unsafe, this worry is reasonable. At the end of a bitcoin was dug up before this could happen. Because over time, dig bitcoin increasingly long time, which means that the miners harvest may not be enough electricity costs, because digging a bitcoin need more and more resources.

71, now in circulation proportion bitcoin is how much? In 21 million of all bitcoins, about 16 million 740 thousand bitcoin (or 80%) has been in circulation, the remaining part of the miners are still need to dig.

72, the next 10 years will be the price of bitcoin is how much? When we know how to predict the future, we will give you a reply. But there is a possibility that the technology behind encryption currency long after may still exist in some form.

Leave a Reply

Your email address will not be published. Required fields are marked *