Bitcoin FAQ

General questions

  1. What is Bitcoin?
  2. How can I get Bitcoin?
  3. Can I buy cryptocurrency Bitcoin via PayPal?
  4. What is the best forum for Bitcoin users?
  5. How generate bitcoins?
  6. How much Bitcoin released at this time?
  7. Up to how many decimal places is divided into 1 Bitcoin?
  8. As called Bitcoin share?
  9. How decreases Bitcoin block reward?
  10. Over what period of time will be created all the coins Bitcoin?
  11. It will create new blocks after all the coins will be issued Bitcoin?
  12. What happens if someone generate alternative chain Blockchain or other cryptocurrency make you forget about Bitcoin?

 

Economic aspects of Bitcoin

  1. Provided there Bitcoin something and that maintains its course?
  2. What happens if someone buys all Bitcoins?
  3. Could Bitcoin cause deflationary spiral?
  4. Is it fair to benefit from the use of Bitcoin for the first members of the network?
  5. Is Bitcoin a Ponzi scheme?
  6. Is Bitcoin a financial bubble?
  7. What if I lost my wallet Bitcoin, there is a possibility to recover the money then?
  8. Will not the loss of purses and a limited number of coins to the high deflation BTC cryptocurrency and destroy Bitcoin?

 

 

What is Bitcoin?

Bitcoin (Bitcoin, BTC) - This system cryptocurrency currency Bitcoin. To indicate this cryptocurrency and specify the number of coins accepted abbreviation BTC (eg 10 BTC = 10 coins in the Bitcoin). Bitcoin is not material coin, it's just a number that is tied to the Bitcoin-address. More information on this question is answered this article.

How can I get Bitcoin??

To get Bitcoin there is a huge number of ways, here are some of them:

  • Take cryptocurrency Bitcoin as payment for goods or services.
  • Exchange rubles, dollars or euros on special Bitcoin exchangers.
  • Find a person has in real life Bitcoin mud at the forum and ask to sell Bitcoins.
  • Create a new block with the production process Bitcoin, which is called Mining. Currently 1 block created 25 BTC.
  • Participate in the joint creation (generation bitcoin blocks) on special public pools.

For more information about how to get Bitcoin, read in this article.

Can I buy cryptocurrency Bitcoin via PayPal?

Of course, you can find someone on the forum or in the real world who wants to sell you Bitcoin for PayPal, but it is quite dangerous and can easily run into a scam. Most of the major stock exchanges and exchangers unfortunately not, allows to buy Bitcoin for PayPal. This is due to the refund policy of PayPal, where the payment system often gets in the side of the scams that ask for a refund, because of the non-receipt of goods.

What is the best forum for Bitcoin users?

There are several forums, which is useful to know the people interested in Bitcoin:

 How generate bitcoins?

Online Bitcoin new coins are generated every time a network user is solving mathematical problems, this creates a new block with coins. The award for the unit is set up so that in the first 4 years of the Bitcoin network will create 10.5 million coins BTC, though each unit generates 50 coins. Each subsequent year, the amount of 4 awards will be reduced to 25 per unit BTC, 12.5 BTC per unit and so on. As a result, the total number of coins generated for the entire period will be 21 million BTC. Blocks are an average of 1 every 10 minutes, as the calculation of (decreasing or increasing) the number of people who want to generate power unit and their equipment will be recalculated and changed network complexity (complexity of mathematical problems to create a new unit) to maintain the average value one unit for every 10 minutes. The complexity of the network is recalculated every 2016 blocks. To calculate the probability of the creation of the unit, it is necessary to calculate the ratio of the power system, which wants to create a block on the total capacity of all the systems that are trying to create a block.

How much Bitcoin released at this time?

In order to know how many coins BTC generated presently is necessary to multiply the number of blocks generated in the network by the number of coins in the block. For the first 210,000 units, the number of coins in a block is 50 BTC. For the following 210 000 units = 25 BTC. The current number of coins can be generated to see here.

Up to how many decimal places is divided into 1 Bitcoin?

Bitcoin is divided to 8 decimal places. 0.00000001 BTC is the smallest share of Bitcoin. In the future, it is possible to increase the bit division into smaller pieces, if this need arises.

As called a share Bitcoin?

  • 1 BTC = 1 Bitcoin .
  • 0.01 BTC = 1 cBTC (1 Bitcent, 1 Bitcoin-cent).
  • 0.001 BTC = 1 mBTC (1 milli-bitcoin).
  • 0.000001 BTC = 1 micro-bitcoin.
  • 0.00000001 BTC = 1 satoshi (the minimum proportion of coins Bitcoin, named after the creator of the technology Bitcoin, Satoshi Nakamoto)

How decreases Bitcoin block reward?

The award for the block is reduced to 2 times every 4 years. After 0.00000001 BTC award will be zero. Then cease to create new coin. Calculation of reward for the block is carried out as a bitwise shift to the right 64-bit integer numbers, in other words, the award is divided by 2 and rounded lower side. An integer equal to the value in BTC, multiplied by 100 000 000. As such, the BTC is stored in your account in Bitcoin wallets. To achieve lower rewards unit it needs more than 100 years.

 Over what period of time will be created all the coins Bitcoin?

The last block with the coin under the number 6929999 will be established around 2140. The total number of coins in circulation will 20 999 999.9769 BTC.

 

 It will create new blocks after all the coins will be issued Bitcoin?

Of course there are. Even before the creation of the new coins, the main part of the profit miners will transfer fee coins. When all the coins are released, there is a need in the maintenance of the network and the transaction within the network. As a result, the full reward of the unit will transfer fee BTC. Therefore, the new units will be established forever.

 What happens if someone generate alternative chain Blockchain or other cryptocurrency make you forget about Bitcoin?

Circuit Blockchain Bitcoin can not be so simply and easily copied. Bitcoin system receives the chain block, which is the longest, and hence for which the maximum resources have been spent. Since each additional unit is derived from the previous one, is to create a new chain will need to do more calculations than had been spent for the generation of all blocks and coins s entire history of Bitcoin. A much more real threat to Bitcoin is the presence of its various forks that are technically much more advanced, and that eliminated the major shortcomings Bitcoin.

Provided there Bitcoin something and that maintains its course?

Value cryptocurrency Bitcoin, as well, and other currencies, is that they are made by different shops and services as payment. When we say that the kind of the currency backed by gold, we mean that somewhere there is a stock of gold, on which you can exchange currency if necessary. In a sense, true to say that Bitcoin is provided at the cost of the product or service that the seller set. There is a misconception that Bitcoin allegedly provided the price of electricity that is wasted in the production of Bitcoin. (Here's a simple example: we need to hire 100 people to build a house, it can be a costly exercise, but it is not important. Although the deficit and important for the currency, the currency itself can not do anything useful. For example otpechetok finger a particular person - & nbsp; this deficit, since it exists only one in the world, but this does not mean that someone will want to buy it expensive).

What happens if someone buys all Bitcoins?

If someone will buy Bitcoin at a breakneck pace, the market will react to it, and vendors will begin at the same rate to raise the price on it as long as the buyer does not run out of finances. In addition, not all Bitcoins are for sale, some fundamentally does not want to sell or at what price, believing that in the future course of their further increase. No one can buy Bitcoin, which are not offered for sale.

Could Bitcoin cause deflationary spiral?

To answer this question, read this article.

Is it fair to benefit from the use of Bitcoin for the first members of the network?

Yes, indeed, the first Bitcoin network members have more coins than those who joined the network later. However, in the early mining Bitcoin, they are very risky, spending money for the production of currency, designed for a new unproven technology. In addition, the currency could not gain popularity as a "die" with time. By participating they helped to develop exchange and we are including are reaping the fruits of their "faith." So they get a fair reward for higher risk investments.

Is Bitcoin a Ponzi scheme?

During the construction of a financial pyramid, its creators, and so on who are a step below convince potential investors that they will make a profit. Bitcoin is not promising anything to anyone, and does not guarantee, as there is no central object that owns cryptocurrency Bitcoin. In pyramid schemes, those who joined it before, profit at the expense of those who came after them in Bitcoin there is potential win-win outcome. For example, the early participants will make a profit with an increase rate cryptocurrency, and later by a stable exchange rate and the widespread recognition Bitcoins. The fact that the first participating more profitable than the next does not allow to conclude that Bitcoin - a pyramid. Promotions & nbsp; Google - not a pyramid, although much of their earlier owners rich.

Is Bitcoin a financial bubble?

Yes, of course, but as the dollar and the euro and the ruble. They all have a value only when exchanging n anything. And have no value in use. Since Bitcoin - a code and numbers, and fiatnaya currency - it's just paper. If all stop taking Bitcoin, Euro, dollars or rubles - that puzr burst and its value will go to zero. But this version of events is not considered, since even in Somalia, where the government has disappeared 20 years ago, Somali Shillings still accepted.

What if I lost my wallet Bitcoin, there is a possibility to recover the money then?

If you lose a file Wallet.dat, that holds your wallet, then, unfortunately, your funds are lost forever. They can not be restored or newly generated.

Will not the loss of purses and a limited number of coins to the high deflation BTC cryptocurrency and destroy Bitcoin?

Bitcoin will be subject to a slow gradual deflation over time, in contrast to other currencies. Given that it has a limited emission of 21 million coins, and this number is known and predictable from the beginning, the rate of generation is also predictable. Besides this, Bitcoin there is another danger, which is absent in other currencies - is missing coins all, if a user loses his wallet. These coins are missing, including from the general circulation. As a result, the laws of supply and demand, it is estimated that the cost of Bitcoin will continue to grow. However, in practice, nobody knows what will happen to the currency, number of coins that will constantly fall. But Bitcoin is a solution to this problem - it is the divisibility of a coin to very small quantities. That is, even if the system loses bolshii of the coin, the currency will continue to function. So, the problem is not so starshno as it may seem at first glance.