Bitcoin Forum

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Source: Wikipedia (https://en.wikipedia.org/wiki/Fear,_uncertainty_and_doubt)

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Questions like "Is Bitcoin illegal?", "Is Bitcoin a scam or a Ponzi scheme?" and "Why is Bitcoin so expensive?" are common amongst people (usually friends, family, and coworkers) who have no experience with Bitcoin. These questions are usually negative in nature, mainly due to the position that mainstream media puts Bitcoin (and other alternative cryptocurrencies) into. Rather than do their own research about Bitcoin, these people tend to listen to the fud and deter themselves from learning more about it.

You'll often hear them say things like "I've heard about Bitcoin a long time ago, but I never got into it" or "Don't hackers use Bitcoin to demand ransoms?" or some other fud-fueled question.

Let's all do our parts to help educate them in simple terms. This topic will provide you answers with (hopefully) all of the questions that you receive by people who have no idea what it is. Here's how it will work:

• Answer a question (or as many as you like) from the list in the next post below. Give me your best answer, and if it helps the overall greater good of Bitcoin, your answer will be quoted into the answerⁱ in the Questions section, and you will be awarded with a meritⁱⁱ.
• Keep it simple. Try to keep the answers non-technical. People that don't care about Bitcoin tend not to want to because they don't understand it. Why? More than likely because it's all just "computer speak" to them.
• Ask a question. Do you commonly get asked the same thing (that isn't covered below)? Post your question, and whoever has the best answer (including yourself, if you choose to answer the question) will be awarded a merit, and their answer will be added to the listⁱⁱ.
• Do not shitpost. One-sentence answers (very few exceptions will be made) will be purged, as to help eliminate spam (and obvious sigspam). Yes, I will delete your post if it's obvious that you're shitposting solely to increase your post count for your signature campaign.

Remember, these questions are for complete Bitcoin newbies or people who have no idea what Bitcoin is. Please try and avoid submitting technical or more knowledgable questions like "What is the genesis block?" or "Who is Satoshi Nakamoto?". Let's focus on helping our friends and family get their feet wet first and then change their overall negative perspective about Bitcoin first.

ⁱWhether your answer gets added will be under my sole discretion. If you don't agree with me, start your own thread. | ⁱⁱMerits will be distributed until I run out of sMerit to award.

Common Questions & Answers about Bitcoin

Q. What is Bitcoin? Isn't it just made-up money?
A: Bitcoin is in some ways less of a made up money than the money the banks have conditioned us into believing is valid currency. Let me explain how, The main two problems with the Historic money systems is bank currencies/notes are manufactured/printed as required meaning banks can devalue your Bank note just by printing more and over circulating. The second main problem is bank notes state 'I promise to pay the bearer on demand the some of - Five pounds sterling' for example, this is supposed to link to a real commodities like Gold or silver and if we all wanted to cash our I O U's in at the same time would banks even have enough real commodities to cover this (I would not bank on it lol). Another simple way to look at these issues is banks that control 'current real money' are simply businesses and if banks go out of business your pieces of paper (e.g. bank notes) are worthless. Bitcoin solves these problems and is not manipulable like £, $, Euro etc.. is as the amount of Bitcoin has a predetermined amount that is hard coded into the source code. Another huge advantage the new money system Bitcoin has is the fat cats are not taking big 3rd party cuts on transactions especially international ones making Bitcoin already the preference for allot of people and business when completing international transfers. (@ScotlandPros (https://bitcointalk.org/index.php?topic=3041155.msg31480386#msg31480386))

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Q: Is Bitcoin a scam? What about a Ponzi scheme?
A: Bitcoin isnt a scam or a ponzi scheme, it is a currency. The price can vary due to changes in supply and demand, but this doesnt affect bitcoins use as a currency to buy and sell products and services online and in person.

Ponzi schemes promise unrealistic rewards and rely on new investors to pay the profits of current investors, and in the end exit scam and leave the new investors with nothing.

This is not bitcoin. Bitcoin is in essence a software run by thousands of computers decentrally (and you access this network when you use a web wallet or desktop wallet). It is based on secure cryptography. Bitcoin isnt owned by one person and cant exit scam. Bitcoin will always be available as long as there are full nodes, miners and people who want to use it. And anyone can run a full node on their computer without high expenses or detailed technical knowledge.

Bitcoin is also deflationary, which means less bitcoin is generated per 4 years, which decreases new supply and keeps the price stable or increasing. This shows that bitcoin is planned for the long-term and will be around as long as we - the users - buy, sell, hodl and use bitcoin.
(answered by @retprogramisto (https://bitcointalk.org/index.php?topic=3041155.msg43286867#msg43286867))

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Q: Isn't it too late to get into Bitcoin?
A: It's never too late to get into Bitcoin, people said this when 1BTC was worth 1000$ [and even less] and now they regret not getting into it. (@Oulay (https://bitcointalk.org/index.php?topic=3041155.msg31461269#msg31461269))

It is never too late to start using bitcoin. No one can predict the future price of bitcoin, but bitcoin has a lot of potential and with more users (=more demand), it is likely that the price will increase. You dont need to buy 1 whole bitcoin if it is too expensive. You can buy any smaller amount such as 0.5, 0.03, 0.001 btc at any time. The bitcoin community is open and welcomes new users, and people are happy to give help and advice about bitcoin.
(answered by @retprogramisto (https://bitcointalk.org/index.php?topic=3041155.msg43286867#msg43286867))

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Q: Is Bitcoin legal? I heard it's illegal in some countries. Why?
A: Legality of bitcoin is based on every country of a person who uses it. For example, a country banned bitcoin, this means that using bitcoin is already not legal for this country. Bitcoin is also legal as long as it is supported or acknowledged by a country or there as long as it is not banned. (answered by @purple.thoughts (https://bitcointalk.org/index.php?topic=3041155.msg31448762#msg31448762))

Bitcoin is a currency, therefore it is irrational to ban it, just as it would be irrational to ban cash or USD. Some countries claim to have banned bitcoin, but even in these countries you can still use bitcoin, download and run bitcoin software, and buy and sell bitcoin peer-to-peer. If the legality of bitcoin concerns you, you can search "is bitcoin legal in [country]" in any search engine.
(answered by @retprogramisto (https://bitcointalk.org/index.php?topic=3041155.msg43286867#msg43286867))

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Q. Don't people use Bitcoin for the black market or for illegal stuff?
A: Of course it is [used for black market or illegal stuff]. Any form of anything that can generate money is. More crime is funded by fiat than Bitcoin, it's a bit of a moot question. The government/IRS bought software to track Bitcoin and blockchain tech. Sure at some point the government is bound to use national security in the quest to regulate Bitcoin but to avoid Bitcoin because it is used in crime is like avoiding cash cause someone snorted cocaine with the bill. (answered by Walrus1 (https://bitcointalk.org/index.php?topic=3041155.msg31454390#msg31454390))

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Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
A: Bitcoins price depends on supply and demand, i.e. the price of bitcoin depends on how much people are willing to pay for it.

Because bitcoin is a deflationary currency, you cant simply print more money, if more people want to have it. Generation of new bitcoin requires electricity (=proof of work mining), which means it costs money to make new bitcoin. Additonally the block reward is halved every 4 years, which means miners generate less bitcoin as time goes on.

This means that the supply of bitcoin decreases over time (due to less bitcoin in circulation due to hodlers) and increased demand will increase the price of 1 bitcoin.

Price spikes may also happen suddenly due to increased demand in bitcoin and constant supply. Meaning, if a lot of people want to buy bitcoin and there is a limited number of bitcoin on sale, the price can increase rapidly.

This means that people who bought bitcoin at a lower price can earn profits, if they sell some of their bitcoin at the higher price. Or they can hold their bitcoin (hodl) which decreases circulating supply and therefore can increase bitcoin price.

You don't need to buy 1 whole bitcoin. You can also buy 0.5, 0.03, 0.0001 btc. The smallest unit of bitcoin is a satoshi and equals 0.00000001 btc.
(answered by @retprogramisto (https://bitcointalk.org/index.php?topic=3041155.msg43286867#msg43286867))

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Q: If Bitcoin isn't bad, why do famous financial gurus like Warren Buffet warn us to stay away from it?
A: First and foremost, anyone who is a financial advisor like Warren Buffet could never advise the public to invest in an asset that isn't regulated by the SEC. He could be sued, or even jailed for giving such advice. The reason people like Warren and Bill don't advise investing into bitcoin is because they are beneficiaries of the current CENTRALIZED economic [fiat] system. They are among the richest people in the world! The system made them this way, so why would they want to change it? (answered by DAOfan (https://bitcointalk.org/index.php?topic=3041155.msg31951627#msg31951627))

Banks, gurus and governments want the world to stay as it is. They dont want to lose power, influence or profits to bitcoin. Therefore they spread FUD (fear, uncertainty and doubt) and false assumptions about bitcoin, to discourage people to use it.

Bitcoin can be liberation from financial institutions like banks and credit card companies. People can use bitcoin freely and anonymously like cash, without required trust in a third party (how can you know that your bank keeps your money safe? that it doesnt invest your money into causes you disagree with? that it cant be stolen or seized?).

Bitcoin can be a viable alternative to Paypal, banks and credit cards to buy online and in person, as you dont need to trust a financial institution with your money. With  bitcoin, people can send money internationally to anyone with processing times as low as 10 minutes and fees as low as 50 cents. No monthly fees, personal information or long contracts required. Bitcoin puts the control back in your hands - if you protect your bitcoin private key, only you have control over your money and no one else can access it.

It is clear to see the benefits of bitcoin over traditional payment methods, and banks can see this too. Bitcoin is a competitor to banks and some banks see it as a threat, while other banks greet bitcoin and even integrate crypto trading into their offers.

That is why it is better to do your own research and read multiple sources, instead of naively believing "gurus" or "leaders". These people can have agendas and give misleading information to discourage people. Therefore as with any research look at a variety of sources and think critically about the information you read.
(answered by retprogramisto (https://bitcointalk.org/index.php?topic=3041155.msg43286867#msg43286867))

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Q: How do I cash out Bitcoin?
A: You can pay for things like coffee or dinner easily with Bitcoin [at over 40,000 businesses that accept it worldwide]. More and more businesses are starting to accept Bitcoin. Additionally, you can exchange fiat cash on Bitcoin ATMs, which are readily becoming more available on a regular basis. You can also exchange many fiat currencies into Bitcoin (and other cryptocurrencies) at cryptocurrency exchanges. (@smileflowers (https://bitcointalk.org/index.php?topic=3041155.msg31988531#msg31988531))

There are also some Bitcoin debit card service available, where you can just load the account with Bitcoin and then use the card that they provide to shop anywhere that accepts credit card payments. (@coly20032003 (https://bitcointalk.org/index.php?topic=3041155.msg32037993#msg32037993))

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Q: Is Bitcoin safe?
A: The algorithms and technical solutions that underpin the foundation of Bitcoin are absolutely safe. But the answer to this question depends on you personally. Just ask yourself: Is your credit card safe? Is the Dollar, Euro or Yen safe? The water you drink, the air you breathe, is it safe? Are cars or planes safe? Don't get on the plane if you doubt its safety. The same is with Bitcoin. Only your faith in Bitcoin will give the answer whether it is safe or not. (ValeryO (https://bitcointalk.org/index.php?action=profile;u=1893320)

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Q: Who controls Bitcoin? [the answer could use further explanation]
A: Bitcoin is not controlled by a centralized organization. It is "controlled" by a network of people, such as: the people who hold them; the miners; the traders; the developers. It is the Bitcoin community as a whole that controls Bitcoin. (@coly20032003 (https://bitcointalk.org/index.php?topic=3041155.msg32037993#msg32037993))

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Q: Will Bitcoin make me rich? (asked by Walrus1 here (https://bitcointalk.org/index.php?topic=3041155.msg31486834#msg31486834))
A: There is no guarantee in any market and useful advice is "Dont invest more than you are prepared to lose". While there are good reasons for bitcoin to increase in value, nothing can be guaranteed.

Bitcoin offers many opportunities to earn money online - from trading, sale of goods or services or mining - and many people profit from bitcoin.

However, bitcoin is a currency and not a get-rich-quick scheme. You can definitely earn money with bitcoin, but you need to make effort. Check bitcointalk.org and reddit.com/r/bitcoin to learn how to earn with bitcoin.
(answered by retprogramisto (https://bitcointalk.org/index.php?topic=3041155.msg43286867#msg43286867))

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Remember, you can post your own questions in this thread! If it's a popular question and receives an answer worthy of being included in the list, it will be added and the person who answered it (this could be you) will be merited.

Kind of funny how a bunch of noobs are complaining about how hard it is to earn merits, but when a topic is started to reward merit to those who want to actually contribute to something good for Bitcoin/forums, there's complete silence. Otherwise, other megathreads and bullshit "discussions" throughout this board are littered with spammy shitposts.

Either way, if you're looking to earn a merit or two, check out the original post and help contribute to something good!

I want to answer the question Is bitcoin legal?. Legality of bitcoin is based on every country of a person who uses it. For example, a country banned bitcoin, this means that using bitcoin is already not legal for this country. Bitcoin is also legal as long as it is supported or acknowledged by a country or there as long as it is not banned.

Good answer. Thanks for getting this started. Have a merit :)

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Everyone else, if you have a different answer for a question that has already been answered, feel free to answer it again! If it gets added to the Q&A list, you'll receive a merit for it.

I have also edited the original question (formerly "Is Bitcoin legal?") to make it more 'fuddy' ("Is Bitcoin legal? I heard it's illegal in some countries. Why?"), as I have LITERALLY just returned from dinner where a friend asked me why it was illegal in Ecuador, where he just returned from.

Cheers!

Bitcoin is controlled by all bitcoin users.

Unless most bitcoin users agree to make a change (such as rule changes or version upgrades), no one or organization can change or stop bitcoin.

Is btc used for black market or illegal activity, of course it is. Any form of anything that can generate money is. More crime is funded by fiat than Bitcoin, it's a bit of a moot question. The government/IRS bought software to track Bitcoin and blockchain tech. Sure at some point the government is bound to use national security in the quest to regulate Bitcoin but to avoid Bitcoin because it is used in crime is like avoiding cash cause someone snorted cocaine with the bill.

So then I can make new rules for how Bitcoin is used or created? As a user, I can create more Bitcoins? I can control the price of it, as long as I get my friends to agree? Although I know what you're trying to say, these are the types of questions you'll get back from someone who knows absolutely nothing about Bitcoin.

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I purposefully left out a lot of questions that I get asked on a daily basis because I want you guys to be able to contribute to this list, as well. But I just got asked this one again a few minutes ago:

Isn't it too late to get into Bitcoin?

I'm adding it to the list and attempting to merit myself for it :D

Edit:

Everything is influenced by supply and demand, and so is BTC! The demand of BTC will be increased in the market, and the price of BTC will be improved!

The number of BTC is certain! And BTC mining is getting harder, and the cost of mining BTC is increasing.

This leads to the increase of BTC price!

Common Questions & Answers about Bitcoin

Q. What is Bitcoin? Isn't it just made-up money?
A:Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies,products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Research produced by the University of Cambridge estimates that in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.

Q: Is Bitcoin a scam? What about a Ponzi scheme?
A: No Bitcoin is not a scam although you need to watch for independent scammers that may use Bitcoin or other cyrptocurrency either as a lure or form of payment.

Q: Isn't it too late to get into Bitcoin?
A: No, Bitcoin coin has huge long term growth potential.

Q: Is Bitcoin legal? I heard it's illegal in some countries. Why?
A: Legality of bitcoin is based on every country of a person who uses it. For example, a country banned bitcoin, this means that using bitcoin is already not legal for this country. Bitcoin is also legal as long as it is supported or acknowledged by a country or there as long as it is not banned. (answered by @purple.thoughts)

Q. Don't people use Bitcoin for the black market or for illegal stuff?
A: Of course it is [used for black market or illegal stuff]. Any form of anything that can generate money is. More crime is funded by fiat than Bitcoin, it's a bit of a moot question. The government/IRS bought software to track Bitcoin and blockchain tech. Sure at some point the government is bound to use national security in the quest to regulate Bitcoin but to avoid Bitcoin because it is used in crime is like avoiding cash cause someone snorted cocaine with the bill.
 (answered by Walrus1)

Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
A:You don't have to buy a whole Bitcoin, you can buy satoshi's which are fractions of bitcoins from as little as £50 on some platforms like localbitcoins

Q: If Bitcoin isn't bad, why do famous financial gurus like Warren Buffet warn us to stay away from it?
A:Everybody has their own opinion on Bitcoin you need to try and make up yours.

Q: How do I cash out Bitcoin?
A: Use platforms like localbitcoins to sell out your Bitcoin

Q: Is Bitcoin safe?
A:Yes as long as you keep the password for your digital wallet safe and don't do things like let people you don't trust team viewer into your computer.

Q: Who controls Bitcoin?
A: No one, Bitcoin is a decentralised currency run by the people.

I hope some of my above feedback assist in some way. I also hope I earn some merits.  ;)

I'm going to add a question that I see a lot on the Beginners & Help board, which I also answer...but I want to open up some health discussion on this particular Q&A because I sense the answer is evolving.

Q: What is an Airdrop?

HabbyB's Answer: An Airdrop is the crypto currency distribution model used when a hard fork is attempted on an existing crypto currency. The forking coin must issue tokens to match the money supply of the crypto currency targeted for the fork, this creation and assignment of coins (seemingly out of thin air) was called an "Airdrop".

A few sources to support the original definition

[li=https://steemit.com/bitcoin/@bitcoinflood/icos-are-out-airdrops-are-in]ICOs are out, Airdrops are in[/li]
[/list]

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The discussion part...

More and more people are using the term "Airdrop" differently, I believe some of these new uses are appropriate and some are not.

Appropriate new uses of the term "Airdrop"

• Tokens given out as a reward to loyal customers/owners of an existing crypto currency

Inappropriate new uses of the term "Airdrop"

• Tokens given out when one participates in an advertising or bounty campaign to promote a new crypto currency - this is actually called "income" or "compensation
• Tokens given out for free to anyone who signs up to receive the new crypto currency, must be a new crypto currency - this is actually a "giveaway promotion"

Another source, but I don't agree with it 100% - What are Airdrops? (https://medium.com/the-mission/what-are-airdrops-in-crypto-world-a345725c75e0)

A better source - What's a Cryptocurrency Airdrop? A Beginner's Guide (https://coincentral.com/cryptocurrency-airdrop/)

However you define it, Airdrops are risk as f*ck and their worth what you paid for them (which is usually nothing) because it requires a market to be created before they can earn any utility...this is incredibly difficult if the crypto currency doesn't have a good business model, and if to did it wouldn't have to give away free tokens as part of it's initial offering.

Thoughts?

A: You can cash out bitcoin by selling it on the exchange that have FIAT pair, e.g : BTC-USD.
    Then from that exchange, you can withdraw your USD to your account such as : bank account, paypal account, and other fiat account.

It's never too late to get into Bitcoin, people said this when 1 BTC was worth 1000$ and now they regret not getting into it.

Bitcoin is expensive because there is high demand for it with a very limited supply. But don't worry, you don't have to buy a whole Bitcoin. You can buy 0.01 of Bitcoin at a time or 0.005 BTC or whatever that suits you. Fractions of bitcoin are called Satoshis and 1 BTC = 100 million Satoshis.

It's safe as long as you keep your private keys safe, as in:
Not giving it to people you don't trust, not letting people you don't trust access your computer if the keys are stored on it, Keeping your computer free of malware.
Public and private keys come in pairs, every public key has a private key. The public key is the address that you give other people to send you bitcoin and everyone can see your public key. While the private key serves as a "password" for the bitcoins you receive to the public key, in order to spend those bitcoins you have to use the private key.

I wasn't able to give an accurate explanation without getting into the technical details, I would have said that we actually give a hash of the public key to receive bitcoin but explaining what a hash is can't be done without getting too technical ;D
I would actually like to hear from you on how to explain what is a private and a public key or we could both wait for someone to come and give a better explanation than mine.

No one controls bitcoin, it's a decentralized cryptocurrency and its price depends on supply and demand.
Investing in bitcoin is similar to investing in the stock market, if there is high demand for a certain stock the shares of that stock increase in their price. The same goes for bitcoin, when the demand for bitcoin is high its price increases and when the demand is low its price decreases.
As for the supply part, the total amount of bitcoins is limited to 21 million bitcoins, of those almost 17 millions are already in the market. The rest gradually enters the market through miners as an incentive for them.

Maybe add "Who are bitcoin miners?" or "What is bitcoin mining?" to the questions. ;D

By the way, I've added your thread to my list, this way more people will be able to see it: List of Threads Giving Away Merits (https://bitcointalk.org/index.php?topic=3048258.0)

You should offer resources for a Beginner or Newbie to make some decisions on which exchange they can use if they want to buy some Bitcoin!

I can do it for you, here's a few great resources:

• CryptoCompare Exchanges Overview (https://www.cryptocompare.com/exchanges/#/overview)
• List of Bitcoin Exchanges (https://bitcoin.org/en/exchanges)

I didn't even get past your first answer, as you've blatantly copied and pasted the definition of bitcoin from Wikipedia verbatim. This defeats the whole purpose of this thread. While I appreciate that you took the time to google for the answer, you failed to realize that I was looking for answers in laymen's terms, such as if you were answering the question for a friend. How about you re-post your answers that you've taken the time to write yourself, rather than copying and pasting, and I'll give you another shot?

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While I do appreciate this addition to the thread, I have never been asked this by anyone that I'm trying to introduce Bitcoin to. I do agree with you, however, that the definition of 'Airdrops' has taken a weird turn some point throughout the past year. I, myself, don't participate in airdrops, so I never took the time to research them fully. I do imagine, however, that this question will start to arise more and more in the coming future of cryptocurrency, so thank you for the links; they're great reference points to get started.

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This is similar to what I tell people when they ask me this very same question, but I usually answer with more details about things that they understand. For example, "Saying that if it's too late to get into Bitcoin is like saying that it's too late to start using the internet." or something to that effect. I'm adding your answer as the first part of the answer to the question, but I'd expect some more from others, as well.


I'd prefer you amend your answer with an example, such as being able to buy X amount of bitcoin at a time. Can you do this so I can add your answer?


I guess this was kind of a loaded question, without getting too technical. But the first thing that someone would ask me if I gave them this answer is "That's cool. But what's a private key?" Can you add a brief explanation of public keys and private keys, without getting too technical?


Again, just a bit more detail, such as comparisons to the stock market, which most people understand. Or at least have heard of.


Thank you, much appreciated!

Overall, I'm going to merit you because you took the time to answer the questions, and your answers are obviously yours, and not copied and pasted, but I'd appreciate if you could embellish them just a bit more!

many people around me ask about whether btc trading is the same as gambling because guessing price in the future? What do you think..?? because I can only answer them casually and say that it is not a gamble because the one in the trading when not guess the price but analyze the price from when you buy btc and when you will sell your btc. how about the answers I gave them do you think that is enough, or should there be things I have to explain again to them ...?

Q: Isn't it too late to get into Bitcoin?

No, it is never too late to get into Bitcoin.  Bitcoin and Cryptocurrency has only been around since 2009 and has huge potential to create wealth for the people.  The stock market has been around for over 100 years and people would never say it’s too late to invest in the stock market. 

Now that it comes to my mind, was your intention of this thread to encourage us to introduce bitcoin to people we know and make us think of the best ways to answer these frequently asked questions?
I'm kinda new to bitcoin my self and I've already been asked some of these questions a couple of times when I introduced Bitcoin to my family and close friends. I haven't really given them much thought and your post made me think about them.

I have edited my post. It's ok if you're looking for better answers. I not being a native English speaker find it hard sometimes to find the right words to explain stuff.

It may be better if you state this in your first or second post so that other members won't just skip the answered questions but instead read their answers. This way new members may actually learn a thing or two.

Hello BTC4Joe, thank you for taking the time to feedback on where I went wrong. It was only the first Answer that I copied and pasted as I thought it would be better to give definition but I understand that it is all about putting it out in an easy to understand format so I have given it a go below. Hopefully better now ;-)

Common Questions & Answers about Bitcoin

Q. What is Bitcoin?
A:Bitcoin is a decentralised digital currency that is used as a form of payment throughout the world as an alternative to other currencies like £, $, Euro etc.. Bitcoin and other cyrptocurrencies are run on a Network called blockchain that is decentralised and immutable making it safer than allot of other FIAT currencies.

Isn't it just made-up money?
A: Bitcoin is in someways less of a made up money than the money the banks have conditioned us into believing is valid currency. Let me explain how, The main two problems with the Historic money systems is bank currencies/notes are manufactured/printed as required meaning banks can devalue your Bank note just by printing more and over circulating. The second main problem is bank notes state 'I promise to pay the bearer on demand the some of - Five pounds sterling' for example, this is supposed to link to a real commodities like Gold or silver and if we all wanted to cash our I O U's in at the same time would banks even have enough real commodities to cover this (I would not bank on it lol). Another simple way to look at these issues is banks that control 'current real money' are simply businesses and if banks go out of business your pieces of paper (e.g. bank notes) are worthless. Bitcoin solves these problems and is not manipulable like £, $, Euro etc.. is as the amount of Bitcoin has a predetermined amount that is hard coded into the source code. Another huge advantage the new money system Bitcoin has is the fat cats are not taking big 3rd party cuts on transactions especially international ones making Bitcoin already the preference for allot of people and business when completing international transfers.

Q: Is Bitcoin a scam? What about a Ponzi scheme?
A: No Bitcoin is not a scam although you need to watch for independent scammers that may use Bitcoin or other cyrptocurrency either as a lure or form of payment.

Q: Isn't it too late to get into Bitcoin?
A: No, Bitcoin coin has huge long term growth potential.


Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
A:You don't have to buy a whole Bitcoin, you can buy satoshi's which are fractions of bitcoins from as little as £50 on some platforms like localbitcoins. It is a blike you have £1 made up of pence or $1 made up of cents, RE: 1 Bitcoin is made up of Satoshi's.

Q: If Bitcoin isn't bad, why do famous financial gurus like Warren Buffet warn us to stay away from it?
A:Everybody has their own opinion on Bitcoin you need to try and make up yours.

Q: How do I cash out Bitcoin?
A: Use platforms like localbitcoins to sell out your Bitcoin directly for bank transfer or cash.

Q: Is Bitcoin safe?
A:Yes as long as you keep the password for your digital wallet safe and don't do things like let people you don't trust team viewer into your computer.

Q: Who controls Bitcoin?
A: No one, Bitcoin is a decentralised currency run by the people.

I hope some of my above feedback assist in some way. I also hope I earn some merits.  Wink

Why did you start learning bitcoin?
Because I think bitcoin can help me earn extra money, with trading bitcoins and accepting jobs that pays bitcoins are the ways to earn it. Exchange it to our fiat money after to get use it.

How much time do you allot in bitcoin?
I allot usually 1-3 hours per day. Most of the time is used to learn how I could earn more in it and trying to learn how markets work. Learning how market works will be advantageous when trading.

How are you earning bitcoins?
I earn it from joining bounty campaigns. When a companies startup needs advertising they create campaigns to help spread the news and educate the public about the existence of their company. You will earn from the services you offer.

Why are you posting?
A way to advertise company is adding signatures in your post. So there will be a minimum amount of post companies are requiring you every week. You must comply to it to earn. We post to advertise them.

It could also be a way to contribute to the bitcoin community.

Here is one I see a lot "will Bitcoin make me rich" I see that one all the time. Answer is it's possible but probably not. Bitcoin is being used as an investment vehicle you you can do some trading or just take advantage of the movements in Bitcoin but for a lot of us we look at Bitcoin as a new technology that has the possibility of revolutionizing how we do business. I do beleive btc and a couple other crypto can have huge growth in the future and become something everybody needs or wants to have. Satoshi cut out the central bank. It is the people's currency. What a beautiful idea. Having said that getting in now is still early if btc becomes like the cellphone or computers where everyone uses them. Other side of it is that it stays as it is and is used as a commodity. The days of five dollars turning into a million are over but try to study Bitcoin and see that there is much more to it than will it make you rich. It is a gift given to the world.

I usually compare bitcoin trading to stock trading. There really isn't that much of a difference, with the exclusion of regulations in crypto trading. As long as any two items being traded retain value, how can it be gambling? I would answer their question by asking them the following question: "Do you consider stock trading as gambling? If so, then Bitcoin trading is no different."


Great comparison! I say the same thing, but I often add that as long as you can get into Bitcoin before Wall Street (fully) does, you're still not too late. Good answer, have a merit.


The purpose of this thread was to make it easier for bitcoin enthusiasts to arm themselves with the knowledge to help answer some of the basic questions that people ask. Rather than answering in technical terms, I'm looking for a way to make it easier for them to understand the first steps. I've updated your answer with the edited version. Thanks!


Great, thank you for re-submitting your answers. I LOVE your answer about Bitcoin being a made-up money. I will add that to the answers. Here, have a merit. I'm glad to have popped your merit cherry!


Your answers are based on a very small select purpose of Bitcoin. The general populous won't have the time or desire to earn Bitcoin by way of bounties. While earning small amounts of Bitcoin is a great way to be introduced to it, I have never been asked these types of questions from friends or family. Thanks for taking the time to ask and answer these questions, but I'm looking for more general questions surrounding Bitcoin, not just Bitcoin earning.

This answer, like many others will answer, is based on speculation. While it's great to have a positive outlook on Bitcoin, no one can be certain as to whether investing in Bitcoin now will make someone rich or not. Because I'm not a financial advisor, I rarely speculate on what my friends/family should do with their investments, but I tell them my opinion as to WHY I believe that there is still so much rising value in Bitcoin. An example being that it hasn't reached the mass network effect yet. Once Wall Street starts trading it, whether as a commodity or as a currency, THAT is when I believe that we'll see a rise in bitcoin adoption; much greater than what we experienced in December of 2017.

I like that question, as I've been asked that a lot. I'm meriting you for it, and adding it to the list. Although I would like a more general answer that can cover both sides of the question.

got you, but it's hard for me to be loquacious when I'm so gifted at getting to the point 😀

thank for your answer, maybe i can use your answer for explain to some people around me who ask about topic that i was ask to that you, and to be honest i have a same opinion about trading with you but before i read your answer i not sure to explain that to people who ask to me.. so thank you.. ;) ;)

Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
A: In my own views bitcoin is so expensive now because of the limited supply and there is more demand especially from people who are currently investing bitcoin may have an impact in the price increase. I know most of the people can not afford with regards to the current price of bitcoin but I guess if you are interested to gain great profit, then you will have to make a way to invest even for a satoshi (decimal fraction of btc).

I like where you're going with this answer, but can you embellish a little bit more about the fractional part of Bitcoin? I find that when people ask me this question, it's (usually) because they don't understand that you can buy a fraction of a Bitcoin; they're not required to buy a whole Bitcoin to get their skin in the game.

Well, if you ask me, I will say that there is no right or wrong answer since bitcoin is something that has no physical assurance of some sort of its value nor a single situation that shows creators scamming anyone using or holding it. That being said, I see that the only enemy we have is ourselves(which means how much knowledge we have about how bitcoins move (which is of course the fruit of our efforts in reading and studying about the past events on the crypto world) that influences how good we decide on when to buy or sell, and whether we let greed and other emotions get the best of us and cloud our decisions) and all the other people who uses this great technology Specially those who are holding massive amounts of bitcoins(whales as what people often call them). Because clearly, we cannot control them and make them hold if they wanna sell already or make them sell if you want to have the chance to buy bitcoins for lower prices.

Now, since a lot of people are too lazy to study, learn and understand even just a bit on how things work around here in the crypto world(not just with bitcoins alone) and jump into bitcoins just because they see huge amounts of price increases, they often end up losing a lot of capital since they do not know when is enough or they get carried away by greed because they think that bitcoins and other cryptos out there are tickets to a fast train to success. And guess what happens next? These people either learn the hard way or spread FUD all over the internet.

Yes it may look like a pyramiding scheme, but in my point of view, it isn't since it is as fair as it can get as long as you do your homework. And I am pretty sure that a lot of veterans out there will also agree with me on this.

hope this isn't too complicated and really does help other newbies out there.

(I sure hope that this thread existed back then when I was just starting out. It would've been a big help.)

     You know what pal, the way I see it, the answer to this question depends entirely on what kind of person you are or how you live your life when you are not in the crypto world(poor or rich doesn't matter that much). This maybe hard to understand so let me explain it even further; You see my friend, doing signature campaigns or any other bounties/jobs that pay you in cryptos or bitcoins together with investing and trading is no different with jobs, businesses, investments or any other opportunities out there to earn some money. I mean, all of these are the same because anyone who wants to earn in any field(crypto related or not) must work hard and dedicate a lot of time studying and learning to have at least enough knowledge to be good at what he is doing and a lot more knowledge to excel from others and earn the same or higher than others. The only difference is see is that working in the crypto world lets you decide what day of the week and what time of the day you wanna work unlike other jobs that require you to work on specific days and times.

     Look, the point is, bitcoins together with all the other altcoins out there are not the ones that make someone rich, what makes a person rich is himself. Meaning, if a person in real life is lazy, coward, and does not have the determination or actually put some hard work to change himself for the better, then he would most likely be a failure also in the crypto world. That is, if with the advantages that we can benefit from in the crypto world does not changes his mindset.

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- Hope this helps clear up your mind Walrus1, good luck with your crypto ventures and good day.

Q: Who controls Bitcoin?
A: 1000 people control 40% of the total market. This includes: the maker of bitcoin, Chinese bitcoin farms, FBI, Satoshi Dice, individual millionaires and billionaires: Roger Ver, Charlie Shrem, Dave Carlson ...

Hi. I want to answer another question.

Q: Is Bitcoin safe?
A: My answer is, bitcoin is safe as long as its user is opening his/her wallet with or using the safe platform or site just like how Ethereum has its private keys. We, users are the ones who are responsible in making the bitcoin we earned safe by simply not entering unknown sites where we suspect or where we are required to put our personal details just like our bitcoin wallet address or even some basic info about us just like our emails.

I'm not sure I agree with your answer. You can't really say that there isn't a right or wrong answer... If Bitcoin is a scam, there should be irrefutable evidence or documentation proving that it was designed to scam people of their money. But because nobody people buy and sell Bitcoin on their own free will, and are not required to hold their positions (they can buy and sell at a profit or loss at any time they wish to), it's hardly definable as a scam. But calling ourselves (and whales) our own enemies of Bitcoin will only confuse them even more. That's not a term you should use when trying to address whether Bitcoin is a scam or not, lol.

Additionally, if you're going to reference a pyramid scheme, you have to further explain why Bitcoin is NOT a pyramid/ponzi, instead of just saying that it is not one.

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:D this isn't the answer I was looking for, but technically, you're right. They don't control Bitcoin itself, but they have a lot of influence on the price and value of it, based on their positions. When a newbie asks you who controls Bitcoin, you have to realize that they have no idea whether it's controlled by a bank, by a group of hackers, by a herd of cats, etc.

You're basing your answer on the knowledge that you have of bounties and campaigns in regards to earning Bitcoin (and other cryptocurrency) as a reward for your participation. You have to realize, however, that the average person won't have any idea what those are, so your answer (while it's a good answer for anyone on these forums) won't make sense to someone who isn't that familiar with Bitcoin to begin with.

When a person asks me if Bitcoin will make them rich, they're usually referencing the price spike that they've recently witnessed. They're asking from a speculative point of view from their potential investments, not whether they can earn Bitcoin as a payment for a job or bounty.

I want to answer  Is Bitcoin legal? I heard it's illegal in some countries. Why?

Well there are lots of issues which really make a govt to think when the question comes on something related to money. The fact is most of the countries which are not supporting bitcoin and announce it to illegal are the countries which are developing or 3rd world countries. It’s a fact that developed countries are developed in I.T along with covilozed as well so curruptiom rates are low. But in developing countries are facing a bad economy and most of the politicians and govt it self is corrupted. So here few things will happen if BTC is legalised.
 its an inquiry in which we should think. lets talk about some pros cause it will be sufficient to get the thought how btc can be abused to accomplish something more than huge and something awful to the humankind on the off chance that anybody utilizing it with bad intentions.
BTC have been popular for being able to personalize the whole money management system along with protect the right of user which ensure protect the privacy and identification of user. Blockchain is an open source you can see all the transaction like the way you actually seeing nothing cause you won’t be able to say who is making which transaction.
And for a corrupted country it will boos the corruption cause it’s safe to do crime.
Investment in arms and drugs will go up cause. I body to get caught.
Investment many on bank will decrease inflation rate will go high as money laundering occurs and tax pay will also taste feet of dust.
Terrorist act will go up as they can easily be finance.
so its a threat.... for govt who’s people are not moralised and corrupted.
A big threat to the society. think before you investing like, for money, or for profit..are we gonna help international terrorist to grow.. then like other you r directly or indirectly are participating in their next kill.
There are thousands of cons which will make you cry before you even think to legalise such a thing when you are not prepared enough to fight against the abuse.

hope it helped you.

cheerz

I'm gonna take my shot on this.

Q: Is Bitcoin a scam? What about a Ponzi scheme?
A: Bitcoin is not a scam. Ponzi scheme is a form of scam that uses deception to let people think that the company is very successful even though it doesn't really exist and it uses late investors' money to pay early investors.

Q: Isn't it too late to get into Bitcoin?
A: It's never too late to invest in bitcoin. The technology has still so much to offer aside from financial freedom due to its store of value.

Q: Is Bitcoin legal? I heard it's illegal in some countries. Why?
A: Legalization depends on the government. The only reason why some countries banned bitcoin because some people use bitcoin to do illegal activities like money laundering, buying illegal drugs and financing terrorists.
Q. Don't people use Bitcoin for the black market or for illegal stuff?
A: Some people use if for illegal stuff that's why some countries banned bitcoin because of this main reason. Even if transactions can be seen publicly but you will never know who owns the bitcoin address or who's the person behind buying those stuffs.

Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
A: In every labor there's always an equivalent payment or price. Acquiring bitcoin is not for free. You need to purchase expensive and powerful machines for you to mine and compete with other miners. The value of bitcoin is also determined by the society's acceptance and adoption of the technology. The more people who use or invest in bitcoin the higher its value.
Q: If Bitcoin isn't bad, why do famous financial gurus like Warren Buffet warn us to stay away from it?
A: Change is the only constant in this world. Some people doesn't want change when it comes to things that they can't comprehend. We have different views when it comes to bitcoin, we should just leave them alone and enjoy the ride. Sooner or later those skeptics will hop in when they see our success.

Q: How do I cash out Bitcoin?
A: Every country have local bitcoin exchanges. Some banks supports bitcoin as well.

Q: Is Bitcoin safe?
A: Yes, no one can hack your bitcoin unless they know your private key. The best place to store your bitcoin is by using hardware wallets like Ledger Nano, Trezor or Keepkey. Make sure your private key is hidden in a safe place and should have a back up. Sharing your private key is like giving your money.
Q: Who controls Bitcoin?
A: Bitcoin is highly decentralized. The miners, hodlers, exchanges, and developers are the people controlling it. Hodlers have the biggest impact when it comes to bitcoin's price and development.

Q: Will Bitcoin make me rich? (asked by Walrus1 here)
A: Yes, there are lots of people who doesn't even understand the technology that invest to bitcoin few years back and became millionaires or billionaires. It's never too late though.


Those are tough questions. Hope I got some answers right. I did my best to answer as brief and concise as I could.

I also have a question in mind.

What do you think is Satoshi Nakamoto's first invention? Is it the blockchain or bitcoin?
I'm not sure what's the answer but I think he invented blockchain first then bitcoin.

Did you read the purpose of why I asked these questions, and my expectations of how the answers should be positioned in order for the layman to understand them? You know, people that have never heard of, or have very little experience with, Bitcoin... Your answers are very definitive in nature and hint at requiring prior knowledge of Bitcoin. You sound very matter-of-fact, although it seems that you're misinformed yourself. I know you tried to answer the questions to the best of your abilities, but put yourself in the shoes of someone who doesn't know much, if anything, about Bitcoin. Then read the answers again, and tell me if you think you're making anything more clear for them or if your answers just add a bit to their confusion.

Additionally, the question that you want to contribute means that people would have to know who Satoshi Nakamoto is, and that they would have to have technical knowledge about the Blockchain and Bitcoin. Yet in the title of this very thread, it clearly states "Non-Technical Edition".

While I appreciate that you took the time to write out your answers, I have concluded that you are, indeed, a merit whore. Nice try, but your answers don't merit any, well... merit.

Sorry about this. Thank you for letting me know where to improve. This really helped me. Thanks for your honest feedback. What I don't like is the "merit whore". I respect your opinion with regards to that. I'm still a newbie in here, ready to accept all your hurtful words for my improvement. Anyways goodluck and sorry for wasting your time! Have a great day ahead of you! Peace!

9 out of your last 10 posts are in topics that have to do with merit. The other 1 has to do with making money with Bitcoin. It's obvious that you're here on the forums to make money. That's fine and all, but try to become a healthy part of conversation, as well. You're much better than other shitposters I've encountered; at least you're trying and putting in time to write and answer posts properly. Just try to shift some of your focus from solely using these forums to earn money, and more towards the utility and future of bitcoin and cryptocurrency, and you'll be fine.

So you must be a day trader, highly educated and understand hammers and candles to be earning money because I thought I was smart
too at playing the slot machines because my ears told me that they were always paying out and that i could never loose money.

Me, well i flip burgers for a living, pays about $14 per hour but i feel sorry for them suckers that spend the whole day having to
spam social media sites to make a living from pushing crypto and one of them told me that he's only making a few bucks a day
so i guess it could be worse for me.

I want this thread to be a tool for users to arm themselves with information that isn’t wildly technical. The majority of questions that newbies ask aren’t technical, so the questions you’ve asked aren’t generally popular ones asked when trying to learn about what bitcoin is.

Regarding your answer, when I’m asked this, it’s usually because they have no idea that you don’t have to buy a full bitcoin. The answer that I’m looking for is one that includes that you can buy any amount of bitcoin that you can afford. Want to restructure your answer and post again so I can merit somebody in this thread? :D

Q: Why is Bitcoin so expensive? I can't afford a bitcoin.


A: This kind of question always annoys me. I see it for almost every coin and token eventually. So here goes:

Bitcoin is (practically) infinitely divisible. So is every other coin and token.

Bitcoin is worth roughly $10k/each right now. The maximum number of bitcoins is 21 million bitcoins. 21 million is a completely arbitrary number Satoshi Nakamoto decided was a great number. If Satoshi had decided to make 210 million bitcoins the maximum number of bitcoins, the price of each bitcoin would be roughly $1k/each. If Satoshi had choosen 2.1 million the price would be around $100k/each.

The thing is, you don't NEED a whole bitcoin to do anything. It's not like having a whole bitcoin makes any difference whatsoever in your ability to use bitcoin or transfer bitcoin. The price is irrelevant.

Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
A: Yes, Bitcoin is expensive and that is what most people think of when they see the actual current price and most of the reactions from my friends were seemingly shock how big it is and they were amazed and excited that they wanted to earn btc. So, in the case where some can't afford to buy it, I would suggest these people to join bounty campaign and gradually earn btc in the later time. All they have to do is pursuing the goal to earn btc through their dedication and time in this forum.

::)

Most people you talk to for the first time about Bitcoin won't have any idea what this forum is. Or what a bounty campaign is. Or how to create a bitcoin wallet. Or how to accept bitcoin. Did you not read my suggestion about what kind of answer that I'm looking for in the very post that you quoted?

Q: If Bitcoin isn't bad, why do famous financial gurus like Warren Buffet warn us to stay away from it?

A: First and foremost, anyone who is a financial advisor like Warren Buffet could never advise the public to invest in an asset that isn't regulated by the SEC. He could be sued, or even jailed for giving such advice.

But, and I am showing my paranoia here, the reason people like Warren and Bill don't advise going into bitcoin is because they are the main beneficiaries of the current CENTRALIZED economic system we are living under. They are the richest people in the world! The system made them this way! So why would they want to change it?

Bitcoin is a risk. A MASSIVE risk. The risk of a completely changed economic landscape for billions of people...And the truth is, even if the world adopts decentralized crypto as a major asset/currency, YOU may never make a penny on your investments.

(But that won't stop me from trying) 8) 8) 8)
 

This is extremely similar to the way I personally answer this question. Great answer! Enjoy the merit and top-post fame :P

Thanks for the honest feedback. I appreciate it so much!
I'm in this forum to gain a lot of knowledge and information regarding bitcoin and how to earn bitcoin as well since I'm new to crypto. I'd be a hypocrite if I'd say I don't want to earn small fractions of bitcoin in here if there's an opportunity in front of me. As long as I'm not stepping at anyone's shoe and not doing illegal things in here then I'm good.

How do I cash out Bitcoin?

you can pay for coffee or dinner with bitcoin easily. more and more shops receive bitcoin .you can exchange USD EURO or other on bitcoin ATM machine . of course ,you can trade any currency in the cryptocurrency exchange.

Q: Who controls Bitcoin?

A: Bitcoin is controlled by a lot of people, like the people who hold bitcoins, the miners, the traders, and the developers. You and me could be a part of it. It is the bitcoin community as a whole that controls the value of Bitcoin. For example, the more people hold bitcoin and believe in the value of bitcoin, the price will go up, you can say that the holders controls the value of bitcoin. Also, if the miners stops mining the value of bitcoin will go down, then you can say that the miners control bitcoin as well. So it is not really a single party that controls bitcoin, it is the community, the whole bitcoin ecosystem controls bitcoin.


Q: How do I cash out Bitcoin?

There are a number of ways that you can cash out Bitcoin.

First, you can use exchange. For example, if you are using exchange like Coinbase, you can just transfer your bitcoin there, then sell it for cash. Of course you need a bank account for this.

There are also some bitcoin debit cards service available. Where you can just load the prepaid card with Bitcoin and then shop anywhere with that card. There are also some other payout service where you send them your bitcoin then they will send fiat to your bank account.

Of course you can also use bitcoin for shopping. There are a lot of stores/online stores accepting bitcoin. Even the korean restaurant near where I live accept bitcoin now. That is a way of cashing out bitcoin as well.

Q: How do I cash out Bitcoin?


Option 1:
Step 1. Transfer your bitcoin to Bitcoin to Paypal exchanger like unichange or okchanger
Step 2. Convert your bitcoin to PayPal (your fiat) like PayPal(USD)
Step 3. Transfer your PayPal balance to MoneyGram
Step 4. Receive the cash (fiat) in your nearest MoeyGram

References:
https://www.okchanger.com/CRYPTOCURRENCIES-BTC-to-PAYPAL-USD
https://unichange.me/order/bitcoin_paypal_usd
http://ir.moneygram.com/releasedetail.cfm?releaseid=778502

Q: Who controls Bitcoin?


There is no single person who can control bitcoin even satoshi himself.
But there are people and company who help to run the blockhain and they are....

https://i.imgur.com/IZ4DZPY.png


source:
https://blockchain.info

Thank you very much! It feels so difficult to earn merit sometimes. I appreciate that you are giving people the chance to earn merit while also educating newbies on some of the most frequently asked questions. I plan to link to this thread whenever I get someone who is (honestly) asking some of these basic questions.   

Here is a question you can add: Do people only use bitcoin for illegal activities like buying stuff off the dark web or laundering money?

Q: Is Bitcoin safe?
Yes bitcoin is safe and secured because it is decentralized which means not controlled by someone. If it's about the safety of bitcoin you have the safety of your bitcoin depends on you on how you take care of it and keeping it safe.
Q: Isn't it too late to get into Bitcoin?
It's not too late to get into bitcoin. My brother-in-law still earn from bitcoin and i'm getting into bitcoin, there are still more investing in bitcoin so it's never too late to get in bitcoin, right now there's a possibility that bitcoin's price goes up it's still changing right now.

Thank You so much for the one who created this thread and to those who support. I hope i could earn merit here.

     I want to answer this...
Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
     Bitcoins uses and benefits are the reasons behind it's value. Another factor and reason bitcoin is so expensive because of limited supply of bitcoin while the demand is higher. As the year goes by,bitcoin community become higher and higher,it means the demand increasing that makes also the value of bitcoin so expensive. You can still buy bitcoin when it drops,you can afford it,but always buy only the amount that you can afford  to lost.

This is a very simple answer, but it's very effective. I will add this to the top post, but anyone else can feel free to embellish on this answer, if they like.

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Great answers! I will use modified versions of this to update the Q&A.

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I like that you took the time to reference and cite links here, but never NEVER NEVER recommend crypto-to-paypal exchanges to a bitcoin newbie. Or any digital payment processor, for that matter. That's where you find all the scammers, and someone that barely understands Bitcoin will surely get scammed when trying to convert to digital currency.

---

This is similar to the question I asked: "Don't people use Bitcoin for the black market or for illegal stuff?". You can feel free to embellish on the answer that was provided if you think you can provide an example or something.

Q: Is Bitcoin safe?

A: Bitcoin is as safe as any other asset as long as you safeguard it as much as you would anything else. Obviously the ways to keep it safe are different compared to traditional physical assets, but it is just as theft-proof (or not) as cash/cars/gold etc. The amount you own also reflects on how much effort you put into keeping it safe, same as the reason I wouldn't carry around $10,000 in my pocket, but happy enough carrying $50 for a night out.

Some quick tips.

* Only buy it from reputable exchanges (I like this review site, lots of options and graded on a number of factors https://www.bestbitcoinexchange.io/)
* Double (triple) check any addresses that you are sending it from/to - one wrong digit/letter and it's unlikely you will see it again!
* Store it in a cold wallet that only you hold the private key for access (https://trezor.io/ or https://www.ledgerwallet.com/ are two well established and trusted wallets, but there are more out there)

Q: Is Bitcoin a scam? What about a Ponzi scheme?

No. During the economic crisis of 2008, existing financial systems and the form of money was shaken. Bitcoin comes up whose purpose is to create a peer-to-peer electronic cash system. It relied on a trust less network. The gold like properties of Bitcoin made it superior as compared to other currencies.
What's more, there is never a single party or person promoting bitcoin. In fact, profits were never promised. People can earn or lose money due to the extreme volatility of the price which is different from Ponzi scheme.

Q: Why is Bitcoin so expensive? I can't afford a bitcoin.

It depends on the market value and utility. For example, beautiful girls are usually asked out on many dates and Porsche cost lots of money because both of them are limited and precious in the market. The amount of BTC is limited and it can be used and payed for goods in the real world. More and more people know about it and become popular among people. Therefore, everyone wanted to own one and the price increased rapidly and become expensive.
You don't buy a whole BTC, fractions of bitcoin are ok for you. For example, you can buy 2.32 BTC or 0.0003 BTC.

Q: Is Bitcoin safe?

Yes, Bitcoin’s technology can be trusted so long as you know how it works.
It is more secure than most existing financial services, including legacy banking platforms, which has been compromised repeatedly by hackers.
Just keep the private key same as password for your wallet and don't let people see your private key. Bitcoin’s technology can help you to prevent from being stolen.

Q:Is Bitcoin safe?

The theft of a Bitcoin wallet requires malware to identify the wallet file on the user's computer, control it, and transfer the funds to another wallet. If these files are encrypted with a strong password, malware is less likely to violently enter the file and obtain the user's Bitcoin.

What about the security of money in your wallet? Just like the dollar pound, the security of your bitcoin depends on your vigilance. A victim of a credit card thief can terminate the use of a credit card or withdraw a fraudulent transaction. But Bitcoin is very attractive to thieves because the transaction is irrevocable. The theft of most Bitcoins is the result of inappropriate or poorly managed wallet security, which has caused hackers to steal private keys.

When bitcoin is stolen, in theory, it is possible to track them because every bitcoin transaction is open. However, shrewd criminals have the ability to systematically interfere with this process, making the process extremely difficult.

In short, protect your bitcoin's security just as it protects cash; you should always be vigilant about potential dangers and take every necessary step to protect your bitcoin's security.

In fact, Bitcoin frequently asked questions and answers, the Internet search for a bunch, but we can not understand the proper nouns in the explanation, which requires you to further explore, this part of the study can only rely on their own.

I would like to answer this one since this was left unanswered.

Q: Why is Bitcoin so expensive? I can't afford a bitcoin.

A: Bitcoin is so expensive right now because the demand has grown to an exponential rate. But this did not start this way. There was a time when Bitcoin's price was less than a cent. In fact, the first purchase using Bitcoin was made by a man buying a $25-worth pizza with 10,000 BTC. Bitcoin's value is determined by its demand across the world. And if you cannot afford a full Bitcoin, you can always start with .5 BTC or .1 BTC or even a much smaller amount.

Q: what is an airdrop?

It is the team of ico, the behavior of giving people tokens free of charge!

The effect of airdrop is obvious, raise the popularity of ico! Raise people's awareness of digital cryptographic currency!

Okay i will answer 2 questions using less technical details.

Q: Why is Bitcoin so expensive? I can't afford a bitcoin.

A: Why gold is expensive? Because anyone cannot create gold, gold is rare to find, hard to mine and most of all gold has high demand so anyone who has gold will never sell it lower than the market price.
Same here, In Bitcoin.

1.Anyone can't create bitcoin on there own.
2.Bitcoin mining(Let's say finding new Bitcoins)  is very difficult, expensive and time-consuming.
3.Limited supply.
4.Because of the high demand, anyone who has bitcoin is not ready to sell it lower than the market price.

The price is going up because the demand is going up.
You don't have to buy a whole Bitcoin because Bitcoin has many smaller units. You can buy some smaller units of Bitcoin.

Q: Is Bitcoin safe?

A: Yes perfectly safe!
The public key is like the identity number of your wallet. The private key is like the password or the unique key. Your wallet is public and transparent so it can be seen and checked by anyone if the wallet number(public key) is known. But only you can open it because only you know the password. This password is the one and only way to open the wallet. If you lose it you can not open the wallet. Anyone can open your wallet if the password is known because the wallet is public. Any thief or hacker can not guess the password because it is too long (64 characters). There is no any other way to hack the  Bitcoin system. Unless you reveal your password to anyone you are perfectly safe.

Due to DEMAND and SUPPLY. First and foremost, let it be known that prices goes UP when there is more demand than supply, while prices goes DOWN when there is more supply than demand.

Back in 2009, BTC has no value, because there is no demand for it. It was reported that someone even tried to sell his 10,000 BTC for $50, but was not sold. Again because there was no demand for it and there's so much supply back then.

Today, lots and lots of people wants to get hold of BTC. There's so much demand while having limited supply that it's price rose from nothing to all time high of $17,900.

When someone buy or sell BTC, number of available supply changes. That's why prices vary from time to time.

I would like to add 2 more questions to your list. Because many of my friends and newbies ask them often.

Q: Why Bitcoin when we have international fiat currencies?

A: Because of many reasons.

1. Bitcoin is not controlled by any central authority.
2. Bitcoin is truly international. You can send Bitcoin from anywhere to anywhere at any time.
3. Bitcoin transactions are very fast and low cost.
4. Bitcoin transactions are peer to peer.
5. Bitcoin transactions are anonymous.
6. You can keep your money anonymously.
7. Bitcoin has no inflation.
8. The value of bitcoin is going up. So it is a good investment as well.

Fiat currencies are controlled and regulated by governments and banks. Fiat currency transactions must be done through a third party which takes more time, high service charges and government taxes. Fiat transactions have limitations, unlike Bitcoin transactions. You cannot keep fiat currency or do a fiat transaction anonymously because you are revealing your details to the third party(Bank). Fiat currencies have inflation unlike Bitcoin so the value of your fiat money is decreasing day by day. But Bitcoin has no inflation and the value of a Bitcoin is increasing day by day.

Q: What is Bitcoin mining and who is a Bitcoin miner?

A: Bitcoin mining is the process of confirming a bitcoin transaction. When someone does a transaction there must be someone to confirm it. Miners is a person (a computer actually) who confirms a bitcoin transaction and write it in a public ledger.( This is like a book where all the transaction of bitcoin network is recorded). For doing this task miners charge a small fee and when confirming a transaction a small amount of new Bitcoin is created automatically and given to the miner. This is the way how new Bitcoins are generated.
All miners in the world are connected through the internet and that network is called the Bitcoin network. Their job is confirming the transactions.

This is a great portion of the answer I was looking for; I'll be including a variation of your answer in the top post. Just a side note: I found it extremely ironic that the user that answered the question of "Is Bitcoin safe?" is named cryptothief :D

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I'm including a variation of your answer, as well. Thanks for taking the time to answer this.

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This is getting much closer to the type of answer I'm looking for. I have a very specific way of answering this question that really helps to open up newbies' eyes and I have yet to still hear that type of answer. I'll use parts of yours to add to the top post. Thanks for taking the time!

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I have never been asked this question when speaking to a newbie or stranger of Bitcoin.

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I love this question! I'll add it, along with a variation of your answer. Kudos for adding such a relevant question to the thread!


Honestly, I rarely get asked this question. I would say that out of the thousands of people I have had fresh conversations about Bitcoin with, this subject was only brought up by the other person twice. Additionally, Bitcoin mining includes more than just confirming transactions. This is where it starts to get technical, so I never really take my friends down this road until they understand what Bitcoin is first.

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Hang tight, the top post will be revised tomorrow when I have access to my computer. For now, enjoy your merits! I'm enjoying how this thread is playing out. Keep it up, all!

Before..., the value of bitcoin is too low because the its limited supply is higher than demand but last year (2017) due to its popularity high demand comes in and the value of bitcoin increase 1300% of its value from the start of the year and that why bitcoin now is too expensive.

About affording a bitcoin a potential investor dont need afford 1 whole bitcoin, most of the people outside crypto world thinks that they cant invest on bitcoin because its too much expensive they dont know that they can invest even a $1, Almost everyone looks at its price first and if they cant afford the value of it their interest will suddenly lost. (like you see a new mobile phone released in the mall and you like it very much but you only have $500 in your pocket and the price of the phone is $1500 and you just leave..., but you did know that there is a installment process without interest). People sometimes afraid to ask.

Q: Is Bitcoin safe?
A:
The algorithms and technical solutions that underpin the operation of Bincoin are absolutely safe. But the answer to this question depends on you personally. Just ask yourself. Is your credit card safe? Is Dollar, Euro or Yen safe? The water you drink, the air you breathe, is it safe? Is Car or Plane safe? Don't get on the plane if you doubt his safety. The same is with Bitcoin. Only your faith in Bitcoin will give the answer whether he is safe or not.

This. Great answer. I often make comparisons between Bitcoin and fiat currency. I like to state that I trust the blockchain 100% more than I trust banks. I throw some personal opinion and speculation in there, as well, stating that if/when global currencies collapse, Bitcoin will be there to pick up the slack :P

Welcome to the forums, and enjoy your merit! I will add your answer to the top post.

Let me try this one:

Q: Will bitcoin make me rich?

A: It depends. As we all know cryptocurrencies can fluctuate the value  sincerely. Investing into it is a serious risk endeavor.  If we'll invest in bitcoin and is smart enough to handle it and we know how to play with rules, then there is a big possibility that we'll become rich in the future. I've known some people who became well off but not all are successful , and because bitcoin is a global craze today, even a person not that knowledgeable about it, is buying btc and investing. For some reason, wisdom about cryptocurrencies is really significant.

Hodling btc for a long time will give us great benefits and good profits. So, at the end our victorious and prosperous are all depends on us.

Q: Is Bitcoin a scam? What about a Ponzi scheme?
A: https://pastebin.com/ZUxTmR99

I know this has been already answered but i believe I can add something important

Q: Will bitcoin make me rich?
Beyond the fact that the supply of bitcoin is less than the dollars of even gold and market capitalizacion. I think is determined by in partly by government
. I mean recently FBI are taking account about holdlers of Bitcoin and they are connected with government and they have taxes... Besides this there is a fact, the world has changed and the conditions that made possible that Bitcoin reach $18000 has gone. I mean this fluctuation of Bitcoins has the origin in regulations that before doesnt existed before.So basically the future value of bitcoin rely in the amount of people that is going to invest. But what people?  Im  principally referring to Latin American market in those underdeveloped countries the regulations are more weaker thant  developed countries  so people can invest and expect gain something.And not only they it depends on people awareness about cryptocurrency around the world

Sources:

https://cointelegraph.com/news/fbi-publishes-psa-about-tech-support-fraud-targeting-cryptocurrency-holders
https://www.coindesk.com/us-judge-rules-cryptocurrencies-are-commodities-in-cftc-case/
https://www.coindesk.com/colombian-financial-watchdog-joins-r3-blockchain-consortium/

Q: Is Bitcoin a scam? What about a Ponzi scheme?
A: Bitcoin is not "scam" . Bitcoin - BTC, look like currency or asset - not as activity or any organization. Obviously, it is one of cryptocurrency which is most popular for make anonymous online payment. You can earning Bitcoin by mining, buy/trade, working, etc. So that, Bitcoin can make profitable or not is depend on your decision.
Ponzi scheme is the funding system who join after pay for who join before at crowdfunding or some collect funding format like that, Ponzi scheme does not creat any economic value, the person running it using the money and cash from people sent to people with high interest, and when they cannot paid, the system fall -> bankrupt -> Who join system after lost all their investment.

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My answer maybe so obviously, hope it is enough.

I want to answer is bitcoin is legal? Bitcoin before the blockchain not created it is illegal because some of the users of bitcoin is from the deep web. It can use the bitcoin for payment in drugs and smuggle fire arms. It is also use in money laundry because the transactions cannot trace. But after the blockchain was created the deeb web do not use bitcoin for payment because the money laundry can be traced and it will make as a proof to be as a crime and go to jail. And now the bitcoin from anonymous converted into popular.

Should I sell my house or take a loan for investing in bitcoins ?

The prices of Bitcoins are very volatile. If you are thinking about selling your house or taking a loan for investing in Bitcoins, this is not a good idea. If the price drops drastically, you will be in huge financial crisis. The prices of Bitcoins reduce by even more than 30-40% in single day. If you have invested borrowed money in Bitcoins, this can be very stressful. On the other hand, if you have invested only a fraction of your savings, it will not be a huge deal. Only invest the amount that you are ready to lose.

Nice initiative.

Let me add some questions:

How can I get free bitcoins?

How can one mine Bitcoins? What are the investment returns?

Will bitcoin become a mainstream currency, or will its popularity wane, and why?

How do you convert bitcoins to real money?

What determines the value of Bitcoins?

Why were Bitcoins created?

Q: Will Bitcoin make me rich? (asked by Walrus1 here)
A: Bitcoin can not make you rich. Bitcoin is a tool. Ask yourself, can a hammer, build a house for you? Knowledge and practice, will help you to build a house with his help. Learn the mining, market, entry points, exit, exchange trading, investment, try, make mistakes, but do not give up. And YOU will became rich, USING Bitcoin.

I would like to answer the question about, "Is Bitcoin legal? I heard it's illegal in some countries. Why?", Each country has its own legal considerations of bitcoin and cryptocurrency. Some classify bitcoin as money and legal, some consider bitcoin as either legal or illegal. The United States is a country with the most users in the world. buying and selling and other transactions using bitcoin is legal there. And in japan as well, Bitcoin has been legalized there for digital transactions.

How can I get free bitcoins?

I feel like I could answer this one mostly due to the fact it's the way I'm getting my share of Bitcoin.

There are several ways one could get free Bitcoin one of these ways are through websites called faucets, these websites pay people a small fraction of Bitcoin based on their completion of simple task as filling out  surveys, Recaptecha and solve captcha's to claim these small portions of any cryptocurrency that they might be interested in.

While another way to earn free Bitcoins would also be to participate in a airdrop for less known cryptocurrencies and then exchange those coins for Bitcoin as well.

Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
A: What do you know about assets? like gold. Gold can not be created, but can be found. Just like bitcoin. Bitcoin is discovered through mathematical problem solving which involves a series of complex algorithmic calculations on the computer. This is what makes miners sell bitcoins at a great price. And because the number of bitcoin is also limited. Bitcoin itself was originally designed to produce only a limited amount of 21 million pieces. Currently it is about half of that number mined and circulated. But the price of this bitcoin can still rise and fall. The cause of this price volatility is from demand and supply. So, if you want to buy bitcoin, Try to buy at the lowest price. Because bitcoin is long-term investment.

Trying to do some answer with limited knowledge and hope it helps  ;D ;D

Q: Is Bitcoin a scam? What about a Ponzi scheme?
A: Ponzi scheme / Pyramid scheme definition by society: Is a high yield investment program which offer high interest beyond imagination to an investor. Where did they got the money for that high interest? It was gathered from other new investor's investment so basically the interest money generated by newcomers and if there is no new guinea pig (new investor) or the quantity of new investors money can't cover the interest regularly then the investment will failed. Is bitcoin a scam if you compared with ponzi scheme, then it isn't because bitcoin didn't generated interest or money from newcomers rather than the price of it depends on the demand and supply.

Q: Will Bitcoin make me rich?
A: It depends, bitcoin is an investment so like any other investment you can either make money or lose money from it. So if bitcoin makes you rich then its probably because you've been good at making decision from it.  ;D

I want to answer
T. Why is bitcoin so expensive ..?
A. Due to the cause of its rising prices and the falling of bitcoin prices depending on supply and demand,
his example when his demand is high and the amount of citcoin available is low then his bitcoin price will be high .

Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
A: 1. It's the first decetralised digital currency in the world.
    2. It's easy to trade as almost all market trade bitcoin.
    3. With limited supply of 21 milion and more and more people start aware about bitcoin, so it's all depends on Supply and Demand.
        More demand bitcoin has, ore expensive it will be.

A: A lot of people become interested in Bitcoin because of it's price spike but other than that bitcoin transactions are relatively fast, anonymous, and tax free. Bitcoin has a limited supply and because of the interests it got the demand becomes higher. Having a high demand with a limited supply will drive the price up ;). That's how bitcoin reached it current price right now ;).

Do you really need a bitcoin? Do you know that there's a lot of bitcoin alternatives that's way more cheaper? I'll give you an example we have Ethereum which is faster than bitcoin and cheaper than bitcoin. But if you really want to have a bitcoin you can offer your services or products in exchange for bitcoin ;).

OP: I think we should add this question

I see that there are a few answers to these questions already posted however none of them seemed to hit quite the right note with me so i figured i'd post my own answers for anyone else to peruse.

Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
Bitcoin is so expensive because a number of people derive a given value from it for a variety of reasons. There are the speculators that see its volitility as a positive as use it in order to make short term gains on swings in demand. There are people who believe it is a revolutionary friction-less currency that can be used globally without the need to third parties such as banks. Then there are people that see it as something that may increase in value and believe that they will be able to sell it to the next guy for more money. All of these reasons tie into each other and can play off against each other. With the introduction of segwit and lightning network (decreasing friction in terms of fees) there will probably be more demand from persons wanting the global currency, that plays into the group that hold for increased value, but then these people hear about a government thinking about banning its use and then the volatility seekers get their fill.
You don't need to be able to afford a bitcoin, it can be broken down into units called Satoshis which is 0.00000001BTC making it more accessible that some people give it credit. If your purpose is gains you can just make a % gain based on your initial capital.

Q: Will Bitcoin make me rich?
A: Bitcoin will not make you rich. Your financial interactions with bitcoin may be able to generate wealth for you, perhaps more so that more traditional investments, however the existence of bitcoin will not inherently make you rich. The globe is scattered with people that got sucked into fomo, and purchased during the euphoric 20k run up that are now licking their wounds. Bitcoin will not likely make them rich. There are also swarms of people out there that left their coins on exchanges that were hacked, did not securely hold their private keys or just lost their harddrive with keys on it. Bitcoin will not make them rich. Bitcoin is like train tracks, you need to have both a train (capital) and the ability to operate it in order to get to your destination. The world is littered with train-wrecks from people who thought "bitcoin will make me rich" and did not take the time and diligence to find out How bitcoin Can make you rich. 

I'll probably be back for others later.

Q:Isn't it too late to get into Bitcoin?

A: No,with its limited supply and being the main currency in this very young crypto market bitcoin will always have a huge potential to grow..

This world have an unlimited amount of paper money to buy limited amount of bitcoin.

Q:Where did Bitcoin story begun?

A: The Bitcoin story began on a cryptography message board when the world was in the midst of the 2008 financial crisis, a time when trust in traditional financial institutions was at an all-time low. A mysterious poster using the name Satoshi Nakamoto posted a paper entitled Bitcoin: A Peer-to-Peer Electronic Cash System. It laid out the framework for "a purely peer-to-peer version of electronic cash" that would replace the need for trust in banks and governments with reliance on computer code, algorithms and cryptography.

So what was so special about Nakamoto's proposal? It was not the first digital currency ever attempted - it had several predecessors that all failed, mainly because they were unable to solve what's referred to as, the "double spend problem", without appointing some kind of trusted 3rd party to make sure no one was cheating the system. If a 3rd party is needed to verify transactions, it starts to look like a bank, which is precisely what Bitcoin aimed to avoid.

That's not a good explanation. Most people are being told that they can become rich if they buy Bitcoin and hold it. The only problem is that the value of Bitcoin increases thanks to the effort of our community. Investing in ICOs and trading is a different thing and I doubt that an ordinary person would risk their money and buy some altcoins. Most ICOs these days are only about shiny pictures which aim is to attract investors. Do you really want to exchange your precious bitcoins for some worthless tokens? You'd better bought Monero, Litecoin or any other cryptocurrency which is unique.

Q: Isn't it too late to get into Bitcoin?
A:My opinion is,people claim every year that it's too late to get into Bitcoin but compared to trillion dollar Stocks market we are still in terms of billions,so Bitcoin has huge potential to grow in future,this is in terms of price and trading.

In terms of technology to get into bitcoin,the technology still holds the value but lacks in quiet few things like complete anonymity and scalability.

You all don't need to answer these questions so technically. Chances are that most bitcoin noobs won't understand any of these terms, and that they'll be more confused than before you answered the question.

Review the original list of questions, and try to answer them in terms that are easy to understand for people that have never experienced crypto.

Good luck, all!

Technically speaking, Bitcoin isn't a currency, and that's the argument that most noobs throw back at me, because they've seen it on the news, and how the SEC or US gov doesn't qualify it as a currency or "money".

When I'm asked about the volatility of bitcoin, I tend to steer them towards the conversation of precious metals, and how they're valued based on the supply and demand at any given time, along with the limited quantity available. Gold isn't a currency, but it's still bought and sold as a commodity, much like bitcoin.

(Sorry that the responses are long. I originally wrote this in a text file and cant find a spoiler tag. If this is a problem, I can summarize the answers.)

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Q. What is Bitcoin? Isn't it just made-up money?
A: Bitcoin is a digital currency based on cryptography. It is the equivalent of cash, but for the internet.

You can download a bitcoin wallet to generate a bitcoin address and private key, and share the bitcoin address to receive money. Make sure to keep your private key safe and dont give it to anyone (treat it like a password, as anyone with access to your private key can steal your bitcoins).

 You can buy and sell bitcoin in centralized exchanges or p2p exchanges like localbitcoins, or you can earn bitcoin, if you sell a product or service.
 
Right now it is unprofitable to mine bitcoin with a CPU/GPU (although pre-2013 this used to be the main way to earn bitcoins) and mining now requires ASIC hardware and low electricity costs.

Bitcoins price is based on supply and demand. This means if a lot of people want to buy bitcoin, and few people are prepared to sell (hodlers), the price will increase. Bitcoin is also deflationary (less bitcoins are mined per 4 years, and the final bitcoin will be mined in 2140), which means the supply slowly decreases, and with constant or increased demand, the price of 1 bitcoin will rise. Even when all bitcoins are mined, it is still possible to buy, sell and use bitcoin - the only difference would be increased price and tx fees.

You dont need to buy a whole bitcoin. If you cant afford to or dont want to pay $7600 (current price in Aug 1 2018) for 1 bitcoin, you can buy any smaller amount, such as 0.5, 0.0024 or 0.000123 bitcoin.

No government or bank controls bitcoin. It is controled by you, the user. You have full control over your funds, as long as you protect your private key, they cant be seized or stolen. You dont need to provide personal information to use bitcoin, all you need is a bitcoin address and private key. The bitcoin network is run decentrally on hundreds of computers, which means it is difficult to attack. And your payments are stored permanently in the blockchain, which means no one can undo them or claim you didnt pay.

Bitcoin is a new way to pay online and in reality and is potentially safer than Paypal, Venmo and bank transfers. It is open to anyone in the world with an internet connection, and offers quick payments (you generally only need to wait 10 minutes for 1 confirmation, compared to 2-3 days for a bank transfer) and low fees (e.g. for a payment of $1000 you only need to pay $1 fee).

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Q: Is Bitcoin a scam? What about a Ponzi scheme?
A: Bitcoin isnt a scam or a ponzi scheme, it is a currency. The price can vary due to changes in supply and demand, but this doesnt affect bitcoins use as a currency to buy and sell products and services online and in person.

Ponzi schemes promise unrealistic rewards and rely on new investors to pay the profits of current investors, and in the end exit scam and leave the new investors with nothing.

This is not bitcoin. Bitcoin is in essence a software run by thousands of computers decentrally (and you access this network when you use a web wallet or desktop wallet). It is based on secure cryptography. Bitcoin isnt owned by one person and cant exit scam. Bitcoin will always be available as long as there are full nodes, miners and people who want to use it. And anyone can run a full node on their computer without high expenses or detailed technical knowledge.

Bitcoin is also deflationary, which means less bitcoin is generated per 4 years, which decreases new supply and keeps the price stable or increasing. This shows that bitcoin is planned for the long-term and will be around as long as we - the users - buy, sell, hodl and use bitcoin.

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Q: Isn't it too late to get into Bitcoin?
A: It is never too late to start using bitcoin. No one can predict the future price of bitcoin, but bitcoin has a lot of potential and with more users (=more demand), it is likely that the price will increase. You dont need to buy 1 whole bitcoin if it is too expensive. You can buy any smaller amount such as 0.5, 0.03, 0.001 btc at any time. The bitcoin community is open and welcomes new users, and people are happy to give help and advice about bitcoin.

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Q: Is Bitcoin legal? I heard it's illegal in some countries. Why?
A: Bitcoin is a currency, therefore it is irrational to ban it, just as it would be irrational to ban cash or USD. Some countries claim to have banned bitcoin, but even in these countries you can still use bitcoin, download and run bitcoin software, and buy and sell bitcoin peer-to-peer. If the legality of bitcoin concerns you, you can search "is bitcoin legal in [country]" in any search engine.

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Q. Don't people use Bitcoin for the black market or for illegal stuff?
A: The majority of bitcoin transactions and usage is to buy and sell legal goods and services and to legally trade bitcoin-fiat or bitcoin-altcoins. Bitcoin can be used as one of multiple payment methods in darknet marketplaces, but cash and even traceable bank transfers can be used for illegal purchases. This is not the fault of bitcoin, just as it isnt the fault of banks or cash, when these payment methods are used for illegal purchases. Associations of bitcoin with illegal uses are generally FUD, designed to encourage you to sell your bitcoin cheap, so that FUDers can profit. You wont be accused of crimes, if you use bitcoin, just as you cant be accused of crimes, if you simply carry cash (also anonymous and can be used for illegal purchases) in your wallet.

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Q: Why is Bitcoin so expensive? I can't afford a bitcoin.
A: Bitcoins price depends on supply and demand, i.e. the price of bitcoin depends on how much people are willing to pay for it.

Because bitcoin is a deflationary currency, you cant simply print more money, if more people want to have it. Generation of new bitcoin requires electricity (=proof of work mining), which means it costs money to make new bitcoin. Additonally the block reward is halved every 4 years, which means miners generate less bitcoin as time goes on.

This means that the supply of bitcoin decreases over time (due to less bitcoin in circulation due to hodlers) and increased demand will increase the price of 1 bitcoin.

Price spikes may also happen suddenly due to increased demand in bitcoin and constant supply. Meaning, if a lot of people want to buy bitcoin and there is a limited number of bitcoin on sale, the price can increase rapidly.

This means that people who bought bitcoin at a lower price can earn profits, if they sell some of their bitcoin at the higher price. Or they can hold their bitcoin (hodl) which decreases circulating supply and therefore can increase bitcoin price.

You dont need to buy 1 whole bitcoin. You can also buy 0.5, 0.03, 0.0001 btc. The smallest unit of bitcoin is a satoshi and equals 0.00000001 btc.

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Q: If Bitcoin isn't bad, why do famous financial gurus like Warren Buffet warn us to stay away from it?
A: Banks, gurus and governments want the world to stay as it is. They dont want to lose power, influence or profits to bitcoin. Therefore they spread FUD (fear, uncertainty and doubt) and false assumptions about bitcoin, to discourage people to use it.

Bitcoin can be liberation from financial institutions like banks and credit card companies. People can use bitcoin freely and anonymously like cash, without required trust in a third party (how can you know that your bank keeps your money safe? that it doesnt invest your money into causes you disagree with? that it cant be stolen or seized?).

Bitcoin can be a viable alternative to Paypal, banks and credit cards to buy online and in person, as you dont need to trust a financial institution with your money. With  bitcoin, people can send money internationally to anyone with processing times as low as 10 minutes and fees as low as 50 cents. No monthly fees, personal information or long contracts required. Bitcoin puts the control back in your hands - if you protect your bitcoin private key, only you have control over your money and no one else can access it.

It is clear to see the benefits of bitcoin over traditional payment methods, and banks can see this too. Bitcoin is a competitor to banks and some banks see it as a threat, while other banks greet bitcoin and even integrate crypto trading into their offers.

That is why it is better to do your own research and read multiple sources, instead of naively believing "gurus" or "leaders". These people can have agendas and give misleading information to discourage people. Therefore as with any research look at a variety of sources and think critically about the information you read.

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Q: How do I cash out Bitcoin?
A: You can cash out bitcoin to fiat (bank transfer, cash, etc) via many routes.

If you want to sell bitcoin for bank transfer, you can use a centralized exchange such as Coinbase.com (US), Poloniex.com (Intl) or Bitpanda.com (EU). Localbitcoins.com and Liberalcoins.com are decentralized p2p marketplaces that also offer bank transfers.

If you want to sell your bitcoin for cash, you can check Localbitcoins.com and Liberalcoins.com for cash in mail or cash in person trades. Bisq (https://bisq.network) is another decentralized exchange. Additionally you can check local bitcoin meetups or find a buyer in the Local topics in Bitcointalk. Some cities have bitcoin ATMs where you can sell bitcoin directly for cash at any time, you can check the list here: Coinatmradar.com This is the most anonymous way to cash out bitcoin, as it doesnt require KYC (scan of passport or drivers license).

Additionally there are some bitcoin prepaid debit cards (VISA and MasterCard). You order the card, receive it in the mail, then transfer bitcoin to the card (your balance will be in USD or EUR). Then you can spend the funds in any online or brick and mortar store and withdraw funds from regular ATMs. Some current providers are Wirex (EU), WageCan (Intl) and BitPay (US).

There are other ways to cash out bitcoin, such as to other payment processors like Skrill or PerfectMoney, to store giftcards or prepaid phone credit. You can check decentralized exchanges such as Localbitcoins.com and Paxful.com to see these other methods.

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Q: Is Bitcoin safe?
A: Bitcoin is safe if you protect your private keys. It is better to use a paper wallet (access with https://coinb.in), trusted desktop wallet like Electrum or secure hardware wallet like Trezor or Ledger. Dont share your private key with anyone and ignore all phishing emails/social media messages. Check wallet and exchange urls and bitcoin addresses carefully to avoid typos. If you use Windows, use anti-virus software to protect against viruses that can steal bitcoin. If you buy or sell a product or service for bitcoin, make sure to use a trusted escrow. If you trade bitcoin, dont keep your money on the exchange - transfer it to a wallet that you control and only transfer to exchange when you want to immediately trade. Avoid HYIP programs, bitcoin doublers and cloud mining as these are generally scams. Be careful when you invest into any coin or ICO, as the market could always change and there are no guarantees or refunds. Good advice for the world of crypto: 1) Keep your private keys safe and private 2) Never invest more than you are prepared to lose

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Q: Who controls Bitcoin?
A: No single person or group controls bitcoin. Bitcoin is a decentral cryptocurrency, which means thousands of people cooperate worldwide to provide full nodes and miners.

The bitcoin technology itself was created by Satoshi Nakamoto and is developed by Bitcoin Core team. The Bitcoin code is open source, which means anyone can audit it. It is possible to contribute to the code and suggest improvements.

Due to blockchain technology, no one can reverse confirmed transactions and generation of new coins requires proof of work (electricity costs) and the total supply of coins is limited, which means that no one can generate new coins from nothing and cause inflation. Due to cryptography, it is currently computationally unfeasible to crack a bitcoin private key. The only way to lose your bitcoin is if you store it with a third party (exchange or web wallet), publish your private key (accidentally or due to phishing attack), or you lose it and dont have backups (always keep encrypted backups of your private keys on different mediums).

The price depends on supply and demand. While the media can influence hype or FUD and whales can influence the market, no single person can decide the price of 1 bitcoin in USD.

When you own bitcoin in a wallet, it is under your control. No one can seize or steal it, as long as you keep private keys safe.

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Q: Will Bitcoin make me rich? (asked by Walrus1 here)
A: There is no guarantee in any market and useful advice is "Dont invest more than you are prepared to lose". While there are good reasons for bitcoin to increase in value, nothing can be guaranteed.

Bitcoin offers many opportunities to earn money online - from trading, sale of goods or services or mining - and many people profit from bitcoin.

However, bitcoin is a currency and not a get-rich-quick scheme. You can definitely earn money with bitcoin, but you need to make effort. Check bitcointalk.org and reddit.com/r/bitcoin to learn how to earn with bitcoin.

@retprogramisto, awesome job! This is more along the lines of what I was hoping for when asking to explain bitcoin and its terms in newbspeak. I will be updating the Q&A section based on some of your answers. Thanks for taking the time to break it down!

Edit: added some of your answers. Enjoy the merit! Feel free to ask any common questions that you're asked by bitcoin noobs and non-believers!

No problem. Thanks for the merit. :)

When bitcoin was introduced in 2009 there were lots of questions coming in the minds of millions of people that what are these crypto currencies and how do they work, what is the technology behind it and how beneficial is in investing into these crypto currencies then with time people has understood the fate and potential of bitcoin and now still it is still in lots of controversy but I am sure for one thing very well that in future, bitcoin is going to get legalised all over the world.

You can't definitively say shit like this without sounding like you're shilling the coin for the sole purpose of shilling the coin. Bitcoin is already illegal in many countries, with more undoubtedly following suit. Vietnam, Bolivia, and Ecuador are amongst the countries that have already banned Bitcoin, and Russia will more-than-likely pass a bill to make it illegal, as well. You have to understand that governments hate Bitcoin because there is no way to legislate it, which means there are no security and safety measures that they can take to protect its people from it. Please refrain from spewing shit like "bitcoin is going to get legalised all over the world" because it's simply not true.