Frequently Asked Questions

Bitcoin (7)

Bitcoin is a worldwide cryptocurrency and digital payment system invented by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto. It was released as open-source software in 2009. The system is peer-to-peer, and transactions take place between users directly, without an intermediary.

Category: Bitcoin

Bitcoin has many advantages over fiat currency, including:

  • Inexpensive – Bitcoin fees for transactions are generally minuscule when compared with fees banks charge for similar transactions.  Fees can vary, however.  If you pay higher fees, your transactions are confirmed sooner.
  • Fast and Easy – It takes very little time to send or receive Bitcoin and can be done globally.
  • Security – Users maintain control of their transactions.
  • Transparent – The entire history of transactions is available for anyone to verify at their leisure.
  • Pseudo-Anonymous – Your identity is protected because your personal information is not associated with a transaction.
Category: Bitcoin

There are two primary ways to gain Bitcoin. First and foremost, think about Bitcoin like you would any other foreign currency.  In this way you can buy them (like you might from a bank) and sell items for them.  Most people seeking to buy Bitcoin will use an exchange like Coinbase to do so.  The other way to gain Bitcoin is by participating in the network as a miner.  Miners verify transactions on the blockchain and are given Bitcoin for doing so

Category: Bitcoin

A transaction using Bitcoin takes place between Bitcoin wallets.  The transactions are digitally verified by nodes on the network referred to as miners.  Once verified, a record of the transaction is added to other records which creates a block on the Blockchain.  The blockchain is a public ledger that is completely transparent and the key technology underlying Bitcoin.

Category: Bitcoin

Bitcoin as a currency and network is provably secure. Because it is based on cryptography and mathematics, it is extremely secure.  It is also consistently being tested and made better by the community.

There are things to be aware of, however, when it comes to Bitcoin security.  Imagine you lose a wallet containing $500 in cash.  There is no way to track down that cash and nobody is going to reimburse you for your mistake.  You also wouldn’t say it is the fault of the money.  This same idea applies to Bitcoin.  You need to make sure you are using best practices when dealing with your Bitcoin.  There are different things to be cognizant of depending on where and how you store your cryptocurrency.  I aim to have a tips & tricks article on this matter coming soon.

Category: Bitcoin

Most currency is spent on goods and services in its country of origin.  Bitcoin is a global currency based on the internet.  This means it can be used anywhere and is being adopted more and more every day.  There are large corporations that already accept it, including Dell, Microsoft and Expedia.  There are also many local businesses that accept Bitcoin as well.  Here’s an example for Las Vegas

Category: Bitcoin

Using bitcoin does not require any personal information.  This lets a user protect their privacy.  That being said, all transactions are public and recorded on the blockchain.  This means people can follow the transactions to and from various wallet addresses.  Overtime your online activities might be connected to your wallet’s address, meaning it isn’t 100% anonymous. One way to avoid connecting your identity to any specific address is to use a specific address only once.  You would then create a new address for your next transaction. This may or may not be practical on a case by case basis.

Category: Bitcoin

General (3)

A cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Category: General

The Blockchain is a massive, public ledger that that contains all of the transactions that have been verified.  With most cryptocurrencies, the blockchain is distributed across a global network.  The blockchain is not stored at a single location and is also not centralized.  This means that records are transparent, easily verifiable and extremely secure.  While initially created as part of Bitcoin, there are many projects in development that make use of this new technology.

“Blockchain solves the problem of manipulation. When I speak about it in the West, people say they trust Google, Facebook, or their banks. But the rest of the world doesn’t trust organizations and corporations that much — I mean Africa, India, the Eastern Europe, or Russia. It’s not about the places where people are really rich. Blockchain’s opportunities are the highest in the countries that haven’t reached that level yet.” – Vitalik Buterin, inventor of Ethereum

 

Category: General

Cryptocurrency mining is the process of generating new units of Cryptocurrency.  Not all altcoins generate new units this way.  Those currencies that use the concept of mining to generate new units generally follow a similar pattern.  New Bitcoin, for example, is generated by computers, called nodes, that verify transactions on the blockchain.  The reward for spending computer power to verify these transactions is new Bitcoin.  The way that Bitcoin is built, it gets harder and harder to generate new coins via mining.

Category: General