Hello Folks, After @EyeFakeID 's guide to bitcoin, someone might have any questions regarding bitcoint. So i am here to provide some answers of possible questions that i think might occur in anyones mind.. What is Bitcoin ? Answer: Bitcoin is a cryptocurrency and a digital payment system invented by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto. It was released as open-source software in 2009. The system is peer to peer, and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain. Since the system works without a central repository or single administrator, bitcoin is called the first decentralized digital currency. Besides being created as a reward for mining, bitcoin can be exchanged for other currencies, products, and services in legal or black markets. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin. What is blockhain ? Answer: A blockchain is a public ledger of all Bitcoin transactions that have ever been executed. It is constantly growing as 'completed' blocks are added to it with a new set of recordings. The blocks are added to the blockchain in a linear, chronological order. What is BitCoin Wallet ? Answer: A Bitcoin wallet can be computer software, hardware, or a printed piece of paper, but they all essentially do the same thing: they allow you to spend and receive bitcoins. The core part of a Bitcoin wallet are its private keys. Each private key is a very large randomly generated number, and is used to create a corresponding Bitcoin address (a.k.a public key). Each matching private and public key constitutes a cryptographic key pair. Simply put, public keys are how you receive bitcoins, and private keys allow you to spend bitcoins. Public keys are derived from your private keys, and your wallet contains your collection of private keys. So basically, wallets allow you to store and manage your bitcoins. -->>>Keep in mind if your wallet is ever lost or stolen, your bitcoins are gone forever. So keep your wallet secret and safe. Why should I use Bitcoin? I already have a bank account/credit card/Paypal account/Payoneer account. Answer: Bitcoin has lots of advantages over existing payment methods: There is no centralized middleman controlling the flow of money, so your funds can’t be frozen, held, or subjected to arbitrary spending limits. You can send nearly instant payments anywhere in the world for a very small, optional fee; usually equivalent to a few cents. Bitcoin transactions are irreversible. For merchants, this means no chargebacks and a much smaller risk of payment fraud. All Bitcoin transactions are on public record, so it’s possible to prove a payment has been made or personal ownership of bitcoins. Bitcoins cannot be counterfeited or debased — only a finite amount of bitcoins can ever be created. Bitcoin can be an anonymous form of payment if certain precautions are taken. Is Bitcoin legal? Answer: This is dependent on jurisdiction, but to date, no government has passed any law that makes Bitcoin or cryptocurrency illegal. How are payments made? Answer: Just like in the offline world, a wallet holds the key to making payments. It’s actually easier and faster to make a payment with Bitcoin than any traditional credit card or PayPal transaction online. You get a web or app based wallet, key in the recipients address, enter payment amount and press send. The fees are much lower and you can send Bitcoin any time of day or night without 3rd party assistance. Easy-peasy. Do people have to pay taxes on Bitcoin? Answer: Tax law is dependent on your country and locality. Recently in the United States, the IRS has declared that Bitcoin is to be treated as property, not currency, for tax purpose. All income in the US is taxed, regardless of what form it takes. If you’re paid in bitcoins, you’re supposed to pay taxes on your earnings at the BTC/USD exchange rate when you receive payment. Same goes for any capital gains made when you trade bitcoins for items or sell them for cash. Of course, US taxes can’t be paid in bitcoins, they can only be paid in US dollars, you big silly! What is mining? Answer: Mining is how new bitcoins are minted, as well as how the Bitcoin public ledger (a.k.a. the blockchain) is secured. See explanation here ( http://eyefakeid.com/threads/how-bitcoins-are-created.8/ ) Why is Bitcoin sometimes spelled with an uppercase ‘B’ and other times spelled with a lowercase ‘b’? Answer: “Bitcoin” typically refers to the protocol and associated software, while “bitcoin” refers to the unit of currency. For instance: Code: I read an article about how Bitcoin works. versus Code: I'll pay you 100 bitcoins for that red Cadillac. How can I know which Bitcoin services to trust? Anwer: you can’t. Some services that have had thousands of customers and operated in a trustworthy manner for years have ultimately either lost or fled with customers’ bitcoins (i.e. the MtGox debacle). you should rely on the experiences of others before making that first leap into depositing bitcoins with a service. Read reviews from others and research the service’s reputation by looking on sites such http://bittrust.org/ and searching for the service on the Bitcoin Subreddit ( https://www.reddit.com/r/Bitcoin/ ) and bitcointalk.org. Businesses that have been established longer or are run by known people in the Bitcoin community tend to be more trustworthy. It’s a good idea to distrust any service that does not list their business address or operates anonymously. What are Bitcoins backed by ? Answer: Bitcoins are not backed by any physical asset, bank, or government. Instead, they are backed by math, cryptography, and a public distributed network with a hash computing power of over 740,000 PetaFLOPS (currently). As of this writing, the Bitcoin network is over 256 times faster then the top 500 supercomputers, combined. But what does that mean? It means that many of the world’s citizens and companies have dedicated computers to constantly run and process Bitcoin transactions. And it adds up to a huge amount of computing power. Math and cryptography are used to prove individual ownership of bitcoins, while the computing power of the Bitcoin network is used to secure the the public ledger of all Bitcoin transactions against double spending. Won’t governments try to kill Bitcoin? Answer: Maybe. Bitcoin might be the idea that eventually brings an end to the global bank and government monopoly on money. Some governments might see that as a threat to their power. Others might embrace Bitcoin and its potential for economic growth. Bitcoin is decentralized, so it’s a tough target for an adversary to hit. What could governments do to attack Bitcoin? Excessively regulate or tax centralized Bitcoin based businesses (i.e. online Bitcoin exchanges). Completely outlaw the usage of Bitcoin and cryptocurrency. Turn off the internet. It can be argued that (1.) is already occurring in some jurisdictions: in China, banks are currently outlawed from processing Bitcoin related transactions. United Stateslaw requires expensive money transmitter licenses to operate payment and money exchange services, which has been determined to apply to related Bitcoin businesses.Yet Bitcoin continues to flourish. Prohibition (2.) would probably be met with fierce opposition in free-ish nations, even from citizens that don’t use Bitcoin on the basis of freedom. But nonetheless, illegalization is always a possibility, but the outcome of prohibition might have the reverse effect on Bitcoin’s popularity and usage. The likelihood of (3.) seems small. Most of the global economy relies on the internet. Yet in this case, decentralized internet access may be a viable solution. - I hope it helps a bit.