Bitcoin: The most frequently asked questions

21/02/2018 1 By crypto-age

What is a Bitcoin? The cryptocurrency world introduced a new terminology that is spreading around the web. Let’s examine the meaning of these terms.

What is a Bitcoin

Bitcoin is a cryptocurrency born in 2009.

Anonymous creator known under the pseudonym of Satoshi Nagamoto. The concept of cryptocurrency (based on cryptography) introduces important innovations in the financial sector. Indeed, it is the first decentralized payment system, whose value depends exclusively on market rules (supply / demand).

Does Bitcoin have an actual value?

The lack of an actual bitcoin value is one of the criticisms that is most moved to this project. First, it is worth to notice that noweven the value of fiat coins. Simply, the laws of market establish the value of this money and therefore the so-called “holders” people.

How can I buy Bitcoins?

There are now several exchange platforms, which once registered and after having confirmed your identity. These platforms allow you to exchange different currencies in bitcoins and with different payment methods: bank transfer, credit card.

Do I have to buy at least one of it?

No, it is a fractionable currency. Specifically, the units are the “satoshi” (named after the inventor of bitcoins) which correspond to 0.00000001 BTC.

Is Bitcoin a bubble?

Probably yes, just like all the great technological innovations of the last years – including internet itself. It is not necessarily a bad thing, as important innovations often generate high interest. Currently, because of the lack of association with precious materials but having only nominal value. We can consider every payment system we use daily a bubble.

Is Bitcoin a Ponzi scheme?

Absolutely no. The pyramid schemes offer gains to new entrants in varying percentages on invested capital. Until new people continue to enter the scheme by providing liquidity to pay for those who had previously entered. When the system is saturated and there are no new entrances, everything falls. Bitcoin does not guarantee anything to anyone, who invests to speculate, does it at his own risk. Moreover, the success of the operations does not depend on the system but simply on the market.

How Bitcoins are created

Extraction is the process to create Bitcoins. ASICS systems are currently very popular. That are able to solve the mathematical problems deriving from cryptography. Moreover, they add new blocks of currency to the system. However, it requires a high-energy consumption.

You can find all the information you need about cryptocurrencies on our site.