Bitcoin in questions and answers

Bitcoin is a cryptocurrency that has been the talk of the world for more than 10 years. While the opponents of the digital currency predict its collapse and call it a "financial pyramid", its supporters make a fortune from it. If you have not yet decided which camp to join, read our article.

Why is Bitcoin so popular?

In 2008, Satoshi Nakamoto presented a file with a detailed description of the concept of an independent payment system. Then the world crisis was in full swing, people did not trust banks and the financial system. Bitcoin has become an alternative to traditional fiat money, allowing money transfers without intermediaries.

Digital currency has preserved this principle. Bitcoin is still far from a full-fledged payment instrument, but the coin has already become one of the best ways to store and protect savings from inflation.

Benefits of cryptocurrency:

• transfer commissions do not depend on the amount and your location;
• it is possible to access operations with BTC at any time of the day, and the transfer between accounts is carried out instantly;
• there is no complicated registration, age or other restrictions — to start working with bitcoin, you only need access to the Internet;
• bitcoin technologies make non-commercial financing safe and transparent, users can make donations to various projects around the world while remaining anonymous.

Bitcoin is attractive because of its supranational technology. For example, if a citizen of Ukraine wants to visit the USA, he needs to exchange hryvnias for dollars. Cryptocurrencies allow you to avoid conversion between local currencies, saving on commissions.

Where to get BTC

There are several ways to earn coins. The faucet method consists in visiting special services with a certain periodicity, completing tasks and receiving several dozen satoshis (often bitcoins). Tasks can include entering a captcha, completing a survey, viewing an ad, etc.

It is possible to earn much more from mining - using the computing power of equipment to solve mathematical problems with the aim of finding hashes for a given pattern. The reward for the block is bitcoins: now the reward is 12,5 BTC, and after the halving in May 2020 - 6,25 BTC. This method of earning is no longer so relevant, since the competition is huge, and devices and electricity are expensive.

A more understandable way of obtaining bitcoins is speculation. For example, you are waiting for the rate to fall, you buy bitcoin for visa, mastercard or cash at the exchange, wait for the price to rise and sell. In this case, the highest volatility, which many consider to be the only drawback of digital currencies, allows you to increase your balance several times in a short period of time.

What affects the course

The value of digital currency is determined by supply and demand in the market. The course is influenced by the behavior of major "players".

Among the key factors, it is worth highlighting:

• emission volumes;
• the use or prohibition of digital currency by states and large companies;
• the convenience of using bitcoins in everyday life, for example, paying a bill in a cafe or staying in a hotel;
• emergence of new ways of earning, buying and exchanging coins.

The bitcoin cryptocurrency system itself is a single organism. A BTC holder can crash or rally using hype or panic. But considering the scale of the digital currency, only large "players" can have a strong influence.

Is Bitcoin a financial pyramid scheme?

The more famous digital currency becomes, the more myths arise. In recent years, people have appeared who try to prove that Bitcoin is a financial pyramid. They compare it with JSC "MMM" and JSC "Russian House of Selenga", known in the 90s, from whose activities millions of people suffered.

Bitcoin is completely decentralized: a state or corporation cannot issue additional coins, confiscate funds, or otherwise affect the digital currency in any way. In the project, no one promises anything, unlike financial pyramids.

For financial pyramids, it is important to attract fiat money, and profitability is provided exclusively by means of depositors. Attracting new participants is important for bitcoins, and there are no understood "investors" and "dividends" at all. Cryptocurrency was created with the goal of giving people around the world a monetary system independent of the state.

Where Bitcoin is stored

Digital currencies are similar to fiat currencies in that they need to be stored somewhere. Crypto wallets are convenient, simple and reliably protected, and some give users the opportunity to increase security on their own.

There are three types of cryptocurrency wallets:

• Online. The owner can replenish the crypto wallet or transfer funds from any device connected to the network. It is easy and convenient to use, but having access to digital currency from third parties makes such storage unsafe.
• Local. Access to the funds is carried out through a device with special software. This option is more reliable than the previous one, but it is not convenient to use the wallet.
• Apparatus Funds are stored on a separate device with a high level of security. To replenish the wallet or transfer bitcoins, it is enough to connect the device to the computer. This option is the most reliable, as it is not afraid of viruses and hacking.

Before choosing a crypto wallet, consider the following points:

• frequency of use and volume of operations;
• degree of responsibility for own savings;
• transparency of the system;
• verification process;
• principle of data storage;
• level of anonymity.