Frequently Asked Questions

General Questions

 What is Bitcoin?

Bitcoin is a peer-to-peer decentralized encrypted digital asset. Bitcoin can be sent electronically from one user to another, anywhere in the world, typically in a matter of seconds. A Bitcoin can be divided out to eight decimal places, so you can send someone 0.00000001 Bitcoins, which is smallest fraction of a Bitcoin, and is referred to as a Satoshi, after the anonymous creator of Bitcoin, Satoshi Nakamoto. Bitcoin is often shorted to BTC, #BTC or $BTC.

 Who created Bitcoin?

A badass named Satoshi Nakamoto is an unknown person or people who designed bitcoin and created its original reference implementation. As part of the implementation, they also devised the first blockchain database. In the process they were the first to solve the double-spending problem for digital currency.

 How many Satoshi's are in a Bitcoin?

Each Bitcoin (BTC) is divisible to the 8th decimal place, so each BTC can be split into 100,000,000 units. Each unit of bitcoin, or 0.00000001 bitcoin, is called a Satoshi. A Satoshi is the smallest unit of Bitcoin.

 Who owns the Bitcoin network?

Nobody owns the Bitcoin network much like no one owns the technology behind email. Bitcoin is controlled by all Bitcoin users around the world. While developers are improving the software, they can't force a change in the Bitcoin protocol because all users are free to choose what software and version they use.

 How does Bitcoin work?

A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet.

 How many Bitcoins are there?

There are only ever going to be 21 million Bitcoins that can ever be mined, regardless of the earth's population and its corresponding demand for bitcoins. Once all 21 million have been mined, there will never be any new Bitcoins. As of the December 1st, 2017 approximately 16.7 million Bitcoins have been mined out of the total 21 million, leaving only about 4.3 million remaining. Also note that it is estimated that 3 - 4 million bitcoin have been lost never to be recovered.

 How does one acquire Bitcoin?

There are many ways to acquire Bitcoin including buying, someone sending you some, accepting Bitcoin for goods and services and/or mining. One of the simplest ways to to CLICK HERE , which will take you to the Welcome page so you can download a Coinbase Wallet and get set up to buy some Bitcoin, Ethereum and/or Litecoin.

 What is a Bitcoin wallet? and Why do I need one?

A Bitcoin wallet is a software program where Bitcoins are stored. To be technically accurate, Bitcoins are not stored anywhere; there is a private key (secret number) for every Bitcoin address that is saved in the Bitcoin wallet of the person who owns the balance. You should have a Bitcoin Wallet so you can control and own your Bitcoin, rather than keeping them on an exchange.

 What are the advantages of Bitcoin?

Bitcoin has numerous benefits and advantages over using localized currency, including:

- Peer-to-Peer

- Decentralized

- Open and Distributed Ledger

- Private

- No 3rd Party Involvement, Interruptions and/or holding delays.

- Mobile Payments

- Encrypted & Secure

- Quick, Easy and Cheap Transactions

- Appreciating in Value (based on the life of Bitcoin)

- Irreversible Transactions

- No ID, Address and/or Bank account needed

- Some aspects of Bitcoin and the entire Ecosystem are still in the 'infancy stage' and still being developed.

 What are the disadvantages of Bitcoin?

- Lack of Awareness and Understanding

- As always with new technology, some aspects of the technology are more difficult to understand.

- Risk and Volitility

- Open and Distributed Ledger

- Some aspects of Bitcoin and the entire Ecosystem are still in the 'infancy stage' and still being developed.

 Why do people trust Bitcoin?

People trust Bitcoin because it is based on mathematics and technology and the fact that it is decetralized and not governed by a single entity that can manipulate it's value and supply.

 Is Bitcoin anonymous?

Bitcoin is NOT anonymous, however it is private in some regards. One of the advantages of Bitcoin is that transactions are stored on a open and distributed ledger, this could also be viewed as a disadvantage by some. Always remember that it is your responsibility to adopt good practices in order to protect your privacy.

 Is Bitcoin legal?

Bitcoin is of interest to law enforcement agencies, tax authorities, and legal regulators in many/most countries, all of which are trying to understand how the cryptocurrency fits into existing financial frameworks and systems. The legality of your Bitcoin activities will depend on who you are, where you live, and what you are doing with it.  


*** Cryptocoinz and any of its affiliates and/or members do not provide tax, legal, accounting, trading and or investment advice. This material has been collected and prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, accounting and/or investment advice. Please consult your own professional tax, legal, accounting, trading and/or investment advisors before engaging in any transaction. By closing this window, you and are agreeing to the for-mentioned statement.

 What about Bitcoin and taxes?

The answer to this depends on several factors, including but not limited to who you are? where you live? where you keep your bitcoin? There are many resources on the internet as it relates to this topic. The short answer is yes, you do have to pay taxes on any gains you receive. 


*** Cryptocoinz and any of its affiliates and/or members do not provide tax, legal, accounting, trading and or investment advice. This material has been collected and prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, accounting and/or investment advice. Please consult your own professional tax, legal, accounting, trading and/or investment advisors before engaging in any transaction. By closing this window, you and are agreeing to the for-mentioned statement.

 How are Bitcoins created?

Bitcoins are created through a process called "Mining", any computer can participate as the source code can be downloaded and ran. Businesses or individuals are rewarded by the Bitcoin network for their services and contribution to processing transaction on the network. Bitcoin miners are processing transactions and securing the network using specialized hardware and are collecting new bitcoins in exchange.

 What drives the price of bitcoin?

The general answer similar to anything is 'Supply and Demand'. In our opinion since the supply is limited to 21 million Bitcoin, there is a limited supply relative to an ever growing awareness, understanding and demand for Bitcoin.

 Is Bitcoin in a bubble?

This is one of the million dollar questions and the answer depends on which side of the fence you fall on. If you find a person that know the answer to this question, please find out where they acquired or bought their crystal ball and share with the rest of us.


Mining Questions

 What is Bitcoin mining?

Bitcoin mining is the act of miners use special software to solve math problems and are issued a certain number of bitcoins 'a toll' in exchange for their intelligence, efforts, computational power, electricity, air conditioning and equipment. This provides a smart way to issue the currency and also creates an incentive for more people to mine.

 How does Bitcoin mining work?

info coming soon, thank you

 How does Bitcoin Mining help secure the Network?

info coming soon, thank you

 Can anyone start mining?

info coming soon, thank you

 What is crowd funded mining?

info coming soon, thank you


Security

 Is Bitcoin secure?

info coming soon, thank you

 Has Bitcoin been hacked before?

info coming soon, thank you

 Has Bitcoin been hacked before?

info coming soon, thank you

 What is the best way to secure my bitcoin?

info coming soon, thank you


Next Steps

 What do I need to do to get involved in bitcoin?

Step 1 - Get educated, Cryptocoinz Team has put together this website in an effort to further awareness and educate as many people as possible on Bitcoin and Cryptocurrencies and Blockchain technology. If you haven't already, please feel free to watch the videos on the home page to gain an understanding as the basics of Bitcoin and Blockchain technology.

Step 2 - Download a Coinbase or other Bitcoin Wallet and get registered.

Step 3 - Please set up Google Two Factor Authentification, see Resources page for further details

Step 4 - Write down and keep you Private Key and/or 'Seed' (a group of 8 - 15 random words) in a secure place

Step 5 - Get educated on purchasing and/or obtaining a Hardware wallet like a Ledger Nano S, Ledger Nano Blue or Trezor, see Resources page for further details.

Step 6 - Feel free to purchase Bitcoin

Step 7 - Join and follow us at Cryptocoinz on Telegram, Instagram, Facebook and Twitter.

Step 8 - Share this website with a friend.

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Top 10 Crypto Q&A! - credit to Jerry Banfield

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