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Bitcoin FAQ
What is Bitcoin, and who created it?
Bitcoin is the first-ever and the most popular cryptocurrency. It was invented back in 2008 by Satoshi Nakamoto. Bitcoin's whitepaper totally shook the financial world!
How does Bitcoin achieve security?
Bitcoin relies on the blockchain tech, a chain of blocks secured by miners through the Proof-of-Work (PoW) consensus.
Can I mine Bitcoin myself?
Sure, you can mine Bitcoin yourself. First of all, you'll need top-notch mining rigs and access to cheap electricity. So, better join a mining pool for a smoother and easier ride.
What is the total supply of Bitcoin?
The number accounts to 21 million. And that's it — no more or less. Scarcity drives value.
How can I buy Bitcoin?
That's easy. Just choose a crypto exchange you really trust (itez.com, for instance), sign up, and buy BTC with fiat or other crypto of your own preference.
Is Bitcoin anonymous?
Not really. Bitcoin is what you call "pseudonymous". That means every transaction of yours is recorded on public ledger, or blockchain, and it is absolutely transparent. So, keep those private keys safe!
Can Bitcoin be used for everyday transactions?
It's possible, because there's a so-called "Lightning Network" that aims to boost its speed for microtransactions. But BTC's digital gold status often makes people hold rather than spend.
What is the Bitcoin halving?
About every four years or so, the mining rewards are cut by half, and this is what we know as "halving". Besides, halving usually kicks BTC's price up to new heights.
Is Bitcoin safe from hacks?
Thanks to its robustness, blockchain is difficult to tamper with. But still be mindful with your private keys and stay away from crooked exchanges.
Where do I store my Bitcoin?
In your wallet, of course! Pick wisely between hardware, software, or paper wallets, depending on your security and accessibility needs.
Can Bitcoin be upgraded or changed?
Yes. But any changes require a consensus among both the community and miners. Democracy in a decentralized way!
Is Bitcoin the future of money?
Some say it is, while others remain rather skeptical. There's no exact answer, so only time will show BTC's true potential. But as for now, Bitcoin is definitely the king of crypto.
How does Bitcoin's price rise and fall?
Bitcoin's price is influenced by demand and supply dynamics, market sentiment, adoption by institutions, and macroeconomic factors. It's like riding a roller coaster!
What is a Bitcoin whale?
A "Bitcoin whale" is someone who's got loads of BTC in their pocket. Every time these whales decide whether it's time to buy or sell, Bitcoin's price fluctuates.
Can I send Bitcoin internationally?
Absolutely! Bitcoin is a global currency with fast speed and relatively cheap cross-border transactions.
What is the Bitcoin pizza story?
This story is when the first real-world transaction happened. Back in 2010, someone paid 10,000 BTC for two pizzas.
Why do people refer to Bitcoin as "digital gold"?
Just like gold, Bitcoin has a limited supply. The crypto is also durable, fungible, and divisible. But the main similarity is that BTC serves as a store of value and safeguard against inflation, which are primary functions of gold.
Can I use Bitcoin for fundraising?
Yes! Bitcoin's transparent and quite simple when it comes to transfers, so it's already revolutionized crowdfunding and charitable donations.
What is the Lightning Network, and how does it work?
The Lightning Network is a secondary protocol layered atop the Bitcoin blockchain. It's more like a bonus layer, which lets you do quick and very affordable transactions.
What is the longest Bitcoin bear market duration?
The longest bear market for Bitcoin lasted for a little more than 2 years — from December 2017 to April 2019. A challenging time for HODLers!
What is a Bitcoin maximalist?
A "Bitcoin maximalist" a person who loves Bitcoin too much. They consider BTC the supreme and ultimate crypto, disregarding alternative coins' merit.
Can Bitcoin be lost forever?
Sadly, yes. If you lose access to your private keys or hardware wallet without a backup, those precious BTC might be gone for good.
How does Bitcoin contribute to financial inclusion?
Thanks to Bitcoin, unbanked and underbanked people can easily gain access to financial services. This way they can become a bank of their own.
Is Bitcoin a bubble waiting to burst?
Many skeptics believe in that and are actually waiting for this bubble to burst. However, Bitcoin's already proved its resilience and still gains popularity among institutional investors, so those bubble predictions tend to be just fake.
22 September, 2023
Mt. Gox exchange postpones repayment deadline for a year
This move was disclosed by the trustee in a letter to creditors.
18 September, 2023
Over 50% of Bitcoin mining energy is clean
Such a fact means that Elon Musk can add Bitcoin as a payment method to Tesla again.