Short and Sweet. All You Ever Wanted to Know about Bitcoin [But Were Afraid to Ask]
Can you explain in simple terms what Bitcoin is?
Sure thing! Bitcoin is the most well-known and common cryptocurrency that emerged in 2009.
Bitcoin is based on the blockchain technology and exists across distributed computer network with no central authority controlling it. Bitcoins are digital money that is actually controlled by users and sent peer to peer without any intermediaries.
This means that no one, including the government, can block your bitcoin transactions and you are in full control of your money.
So, nobody controls Bitcoin, right?
Exactly. As we have said, nobody controls the Bitcoin network but users themselves.
Is it even legal?
Bitcoin is legal in most countries in the world. However, there are some countries where Bitcoin is not welcome because of its decentralized nature and the fact that it can be potentially used for illegal activities like money laundering. The BitLegal website marked four countries where Bitcoin is illicit: Ecuador, Bolivia, China and the Dominican Republic.
All cryptocurrencies are banned in Ecuador but the country is going to create its own cryptocurrency in the future. Just like Iceland did (Auroracoin was launched in 2014).
The central bank of Bolivia banned cryptocurrencies, including Bitcoin, in 2014.
Financial institutions in China are forbidden to conduct transactions in Bitcoin. However, regular people can freely deal in Bitcoin.
Similar situation, as in China, has arisen in the Dominican Republic where the national currency is the only legal currency but individuals are free to carry out transactions in cryptos.
Is Bitcoin anonymous?
In short, not quite. Transactions with Bitcoin do not contain personally identifiable information but Bitcoin addresses of both senders and recipients can be easily traced. So, Bitcoin does not offer the same level of anonymity like cash money does.
Can I be sure that Bitcoin is secure?
Yes. Bitcoin is more secure than most existing financial systems. The only thing you have to focus on is your own care and caution, as most problems are due to the carelessness of Bitcoin owners. Human factor plays its role: Bitcoin wallet files with private keys can be deleted, lost or stolen by a user. So, security is in the hands of Bitcoin users.
How much is one Bitcoin worth?
One bitcoin was worth approximately $6,700 at the time of publication (June, 2018). On December 17, 2017, the price per Bitcoin almost hit the record high $20,000 mark.
How can I buy Bitcoin?
You can buy Bitcoin with fiat currencies like USD or Euro. In addition, you may purchase Bitcoin using other cryptocurrencies. There are online crypto exchange platforms, like ShapeShift, where you can trade and sell Bitcoin, as well as other digital assets.
Can I use Bitcoin for online gambling?
Why not? Bitcoin has permeated almost all sectors, and gambling is not an exception. Many online casinos now provide opportunities to bet with cryptocurrencies, and Bitcoin in particular. One of Bitcoin gambling founders was SoftSwiss – now market leader in developing and providing Bitcoin casino software. Its own brand BGAMING incorporates an extensive library of thrilling Bitcoin games.
Gambling with Bitcoins means your payments are faster, cheaper and more secure. When you make deposits and withdrawals in online Bitcoin casinos, you will not be charged as it happens in case with most credit card companies, and your privacy stays intact.