A.Bitcoin is the first implementation of a concept called "cryptocurrency" which was first described in 1998 by Wei Dai on the Cyperpunk mailing list, suggesting the idea of a new form of money that uses cryptography instead of a central authority to manufacture and transaction to control. In 2008 Satoshi wrote a paper about the blockchain and bitcoin. He and a group of developers started creating the technology. Satoshi left the project at the end of 2010 without giving a clue on who he is. Many developers are still working on making the technology behind the Bitcoin better.
A.Bitcoin network is not controlled by an entity, but by miners all over the world. They create the records and excecute transactions.
A.Bitcoin works like a normal bank account. In your bank account you can transfer valuta from one account to another. Bitcoin works the same, only the technology behind the Bitcoin works differently and your IBAN is called a wallet address and looks more like this: kjSJKH8324mS8jkJSsdasnm7834bBN. When you want to transfer Bitcoin from your account to someone else's you need that persons wallet address and you use that to send the Bitcoin too. It's like sending an e-mail. Fill in the address, the amount and maybe a note. Be carefull once you hit the send button you can not undo the transaction. Make sure the wallet address is correct. Our tip: always copy and paste the address.
A.A growing number of businesses and people are using Bitcoin. Every day there are more than 100.000 transactions.This includes transactions to shops such as restaurants, apartments, law firms, and popular services like Namecheap, Wordpress, Reddit and Flattr. Although Bitcoin is a relative new phenomenon, it grows fast. Our tip: Go to the footer of this page and find shops on the world map. You get re-directed to an interactive worldmap where you can find shops that accept Bitcoin.
A.Bitcoin has many advantages. These are the 5 best benefits. 1. Freedom of payment: pay anywhere without borders at any time. 2. Full control: Bitcoin users have full control over their Bitcoins. You can decide whether you want to pay a fee to make Bitcoin transfers faster and your wallet can not be frozen by the government. 3. Lower costs: there are no administrative feeds, you can decide how fast you want to transfer Bitcoin, so you decide on the compensation yourself and the Bitcoin network cuts the middle man, such as banks, making the network cheaper than the bank, Paypal or credit card processors. 4. Transparent: the Bitcoin ledger is visible to everyone. Go to blockchain.info to check all transfers. 5. Security: Bitcoin network is securely encrypted, the use of the Bitcoin network also means that you protect your identity. These 5 advantages ensure that Bitcoin is completely neutral, transparent and predictable.
A.Bitcoin is completely open source and decentralized. All transactions and bitcoins that have been generated can be transparently checked by anyone in real-time at Blockchain.info. No organization or person can control Bitcoin and the network remains secure, even if not all of its users are trustworthy.The network is unhackable, because all the computers in the network keep and eye out for inconsistencies.
A.Bitcoin is designed to allow its users to send and receive payments with the same level of privacy as other forms of money. Using Bitcoin leaves extensive public records, but keeps your idenity out. If nessecary the authorities can find out who you are, but your identity is not shared on the internet.
A.So far, only physical currency has been the only truely anonymous representation of exchange. Bitcoins comes close but your identity can be found. In the early days some criminals used Bitcoin on the dark web, which made great headlines in the news, but no smart criminal would use it.
A.Yes, Bitcoin is legal all over Europe. Very few countries have gone as far as to declare bitcoin illegal. Only Japan decalred Bitcoin to be illegal. That does not mean that bitcoin can not be used in Japan. It means that there are no protections for either the consumer or the merchant, and that its use as payment is completely discretionary.
A.One of the advantages of Bitcoin and other cryptocurrencies is the idea that they are not regulated by a central bank authority. We want to keep it that way, but we do want rules and regulations for companies that use Bitcoin.
A.Bitcoin has the characteristics of money (stability, portability, transferability, scarcity, divisibility, and recognizability) and is based on mathematics properties rather than on physical properties (such as gold or silver) or trust in central authorities (such as legal payment). Bitcoin is backed up by mathematics. As with all currencies, the value of Bitcoin is generated directly and only by the people who accept it as payment, speculations, supply and demand.
A.In order to stabilize the bitcoin price, a big economy with more companies and users has to be developed. Fortunately, the fluctuations do not affect the main advantages of Bitcoin as a payment system for transferring money from point A to point B. It is possible for companies to immediately convert Bitcoin payments to their local currencies, allowing them to benefit from the advantages of Bitcoin without being affected by price fluctuations. For Bitcoin users it can be a sad or a happy surprise to see a different price. In the early stages of the Bitcoin people can make money due to the price differiations. It is possible when the Bitcoin will mature to where price fluctuations will be limited.
A.For the time being Bitcoin remains by far the most popular decentralized virtual currency, but there is no guarantee that it will remain in this position. However, it is certainly true to assume that significant improvements for a new currency would be needed to overtake Bitcoin in an established market, although this is unpredictable. Also, Bitcoin might be able to take advantage of improvements in a competing currency as long as it does not alter any fundamental parts of the protocol. For now Bitcoin has the biggest community, the most transactions and the most merchants accepting it as a payment method.
A.The people who perform and validate Bitcoin transactions are called miners. When you want to make a transaction, the details of this transaction go to the blockchain. All miners in the blockchain network start to solve an incredibly hard mathematical formula, one that can only be solved by computers. We call it: puzzle. The first miner that solves the puzzle can execute the transaction and validate the data of this transaction and lock it in a block. The details in this block are visible in the ledger, but people can not copy or modify the details within the block. When the miner has finished the transaction, he closes the block with a new puzzle. All blocks in the blockchain are created in a series and are numbered. Part of the number comes from the previous block. If someone, a hacker, tries to open a block by solving the puzzle, the number of that block changes and no longer matches the numbers of the other blocks in the sequence. This inconsistency is detected by the network of miners within minutes.