Learning all you can about bitcoin is an important endeavor before you get started mining for it, using it, or buying it. Without knowledge, you’ll be more likely to fall for a scam or make mistakes due to misunderstanding. Keep learning about this important programmable currency so that you can succeed.
Table of Contents
Are Bitcoins Legal?
Because bitcoin has never been made illegal, and more and more businesses are taking bitcoin, it’s considered a legal currency. Because of that, you should be careful not to use it for illegal activities that may end up causing regulation.
What Happens If You Lose Your Wallet?
Losing your wallet means you’ve lost your bitcoins forever. You could lose a lot of money if you do this. There is no recovery and no entity to help you if this happens. Guard your bitcoins carefully.
Do New Bitcoins Get Created?
Every 10 minutes, a new block of coins is solved. At that time a block reward is determined that states the worth of the block. This is the only way that new bitcoins are created. This takes a lot of electricity which is a factor in the value of the bitcoins.
Are Bitcoins Secure?
Some people worry about the security of bitcoin, but the truth is it’s very secure. The important part is to use trusted software, only work with people you trust, and not trust just anyone on the net. That’s why there is a system in place to prove the work.
Is Bitcoin Data Traceable?
The block chain technology is transparent and makes bitcoins very traceable. Block chain acts as a public ledger for every single financial traction on the bitcoin network. However, everyone uses a pseudonym during transactions, and your wallet key is secret and should be known only to you.
Can You Get a Refund from a Bitcoin Transaction?
There is no refund system. Therefore, you can’t get a refund if you accidentally send the wrong amount of money in a bitcoin transaction. Check your math and check your numbers before you complete any transaction.
Who Can You Pay with Bitcoins?
Some schools around the world are taking bitcoin for tuition payments. Schools like Simon Fraser University in Vancouver, Canada, and Mexico’s Universidad de las Americas Puebla and others are taking bitcoin.
Even companies like Dell are taking bitcoin. You can actually pay in bitcoin to over 300K stores and companies around the world.
Do Bitcoins Use Energy?
Using bitcoin takes more energy than a credit card by almost 400 times. That’s a lot of energy and factors into the worth of the bitcoins.
An interesting fact about bitcoin is that Finland exempts bitcoin from value added tax (CAT). This is a tax that is added to goods and services automatically in some countries. Finland has exempted bitcoin from VAT because it is considered a commodity.
Bitcoin is complicated, to say the least. Hopefully, these facts help you think about bitcoin in a new way. The more you learn about bitcoin, the less likely you are to fall prey to a scam and the more likely you are to use it wisely. You can find out a lot about bitcoin from various websites. Try Bitcoin.org, bitcoinmining.com, and Blockgeeks.com.