April 13 2022
Bitcoin - the right answers to important questions
- Bitcoin bubble which is about to burst, leaving all depositors without money.
- Cryptocurrency is nothing but a financial pyramid of the world scale
These statements are zealously voiced on their blogs, forums and pages of periodicals by financial specialists, adherents of the standard (fiat) financial system, where there is a third party in financial transactions and the money must be material, that is, they can be felt and put into a wallet.
Related article: What is bitcoin in simple terms
5 simple questions and answers on the topic: why bitcoin is not a scam and not a pyramid:
1. Question: Bitcoins are not backed by anything, and ordinary money has value.
Answer: Bitcoins, like other official currencies, are primarily backed by the trust of the people who use them.
The era of the gold standard is long gone, so now every country can print as much money as they want. In this regard, bitcoins are also not backed by anything in the same way as ordinary money of any country.
2. Question: So now anyone with a computer can issue bitcoins?Answer: No, unfortunately, or maybe fortunately, it is almost impossible to get bitcoins on a regular computer now.
The probability of such mining is 1 satoshi or 1/100,000,000 percent, now bitcoins are mainly mined on an industrial scale on expensive mining farms
3. Question: Bitcoins are illegal, because if there is no central governing body, how can one legally influence this currency?
Answer: Yes, legally, no country can fully manage bitcoins, but they have already been adopted as a means of payment in: the USA, Japan, the European Union, and Switzerland, corresponding laws are being prepared in the CIS countries.
4. Question: What is the hype around this cryptocurrency, what are its main advantages?
The ability to send money around the world with minimal cost, for example, in order to transfer money from a CIS country to the USA, you need to pay a commission to the bank from 10% -30%
Absence of a third party in the transaction, bank or broker
The ability to send money even to countries that do not have a financial system and banks as such, for example: Mali
· Blockchain technology that physically will not allow stealing or hacking the system.
Bitcoin is not subject to inflation, because according to the basic bitcoin algorithm-protocol, its release is limited to 21,000,000 bitcoins.
· An excellent tool for investing because the bitcoin rate shows explosive growth for 6 years.
5. Question: How will I use this currency if I do not fully understand all the nuances of its origin and circulation.
Answer: You don't have to fully understand how TCP/IP works on the Internet in order to watch news on social networks or send mail.