• Market Cap: $393b

Chapter 10.0

FAQs

This is a list of some of the most frequently asked questions about cryptocurrencies

FAQs

Cryptocurrency FAQs

This is a list of some of the most frequently asked questions about cryptocurrencies:

What is a Bitcoin?

Bitcoin is a cryptocurrency (a virtual token which carries monetary value) which can be created by mining or bought on exchanges. For a more detailed insight, read here.

How to Mine Bitcoins?

Mining requires setting up of mining hardware, mining software and setting up a wallet. You can also optionally join a mining pool to boost your mining efforts. (Read More)

Who created Bitcoins?

Satoshi Nakamoto is the man (or a group of people) who created Bitcoins. The identity of the person is hidden and Satoshi Nakamoto is his assumed pseudonym. The person does so to protect his privacy as he (or they) reportedly holds arounds 1 Million Bitcoins. Read More about Satoshi Nakamoto here.

Are Bitcoins Legal?

Bitcoins, in most countries, have a status which is neither legal nor illegal. It sits in a grey spot as of now but governments are quickly becoming aware of this parallel economy and are working towards legalizing it.

How many Bitcoins are there?

There are 21 Million Bitcoins in total

How many Bitcoins have been mined so far?

As of this writing (November 2017), over 16 Million Bitcoins have been mined.

When will all the Bitcoins be mined?

Considering that with every block, the difficulty to mine it increases, it would take a long time - estimated to be the year 2140 by current calculations.

Why is Bitcoin called Digital Gold?

Bitcoin is called digital gold because Bitcoin is similar to Gold in many ways. Both are depletable - as the quantity of gold is limited, so is the quantity of Bitcoins. Both have to be ‘mined’.

What determines the price of Bitcoins?

There are a number of reasons which determine the price of Bitcoins. However the biggest factor here is the law of demand, as well as public sentiments. For a more detailed insight into why the price fluctuates - read here.

How many cryptocurrencies are there in total?

Bitcoin was the first cryptocurrency. After the success of Bitcoins, many other businesses have started off with their own currencies. The number keeps increasing. As of November 2017, there are a little over 1100 cryptocurrencies. Read more on alternative cryptocurrencies here.

Can I buy Bitcoins with Cash?

Yes, you can. Read here to find out how to buy Bitcoins with cash.

Can I buy Bitcoins using Credit and Debit Cards?

Yes, you can. Read here to find out how to buy Bitcoins with credit cards and debit cards.

Is Bitcoin a Bubble?

This is one of the most controversial topics when it comes to cryptocurrencies. Many people consider it a bubble because there are people who have been investing in it without knowing the technology behind it. While it can be said that it is a bubble to some extent, the official Bitcoin website clearly denies it.

Bitcoin has a value in exchange but carries no value in itself. It is similar to how real life currency notes function. You can pay dollars to buy things as long as dollars are acceptable. Hence, Bitcoin is not a bubble.

What if I send Bitcoins to a wrong wallet address?

If you send Bitcoins to a wrong wallet address, they are gone forever. Transactions are irreversible. Always double check before you send payments.

Can I Transfer Bitcoins to Altcoin Wallets?

No, you cannot. You can send Bitcoins to Bitcoin Wallets, Ethereum to Ethereum Wallets, Litecoin to Litecoin Wallets, neo to Neo Wallets and so on. If you transfer any other cryptocurrency in an incompatible wallet, the amount will be lost and it will not be refunded.

Can my Wallet receive cryptocurrencies if my PC is turned off?

Yes, it can. This is because the Cryptocurrency isn’t physically being transferred to your wallet. Wallets are only a means where you can easily access your account in the blockchain. The transfers are all happening over the blockchain and you would be able to see your cryptocurrency balance increased the next time you power on your PC and access your wallet.

Are there possibilities of fraud?

Users need to be careful in who they are trading with. In case of making transfers to trusted exchanges - there is no risk as they have a good reputation and have been around for years. However, when it comes to buying or selling Bitcoins to traders, there is always a risk. It is best to make use of an escrow service or transfer via a trusted middleman.

What are the various denominations of Bitcoins?

  • 0.01 BTC = 1 cBTC = 1 centibitcoin

  • 0.001 BTC = 1 mBTC = 1 millibitcoin

  • 0.000001 BTC = 1 μBTC = 1 microbitcoin

  • 0.00000001 BTC = 1 Satoshi.

  • Is Cloud Mining safe?

Of late it has been discovered that an overwhelming majority of cloud mining services are fraudulent. It is best advised to either get your own mining setup, or trade. However there are a few trusted cloud mining services, you can read more on them here.

Which are the best Altcoins?

As of this writing, the top ten currencies are

  • Bitcoin

  • Ethereum

  • Bitcoin Cash

  • Ripple

  • Litecoin

  • Dash

  • Neo

  • NEM

  • Monero

  • Ethereum Classic

These statistics tend to change with time. However, the top 5 usually tend to remain more stable than others. Bitcoin and Ethereum have been on the top 2 for quite a long time though it is unlikely that Ethereum will overtake Bitcoin, at least in the short-term.

What is the computation during mining process used for?

Mining requires a lot of processing power to solve complex algorithms - that’s how we know it, right? This computation actually solves a bigger purpose: It helps protect the Bitcoin network and keep it secure. Hence, it is not a waste of energy and is quite useful.

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Chapter 10 - FAQs