From my understanding, we are kind of seeing it right now. While new Bitcoin can be mined, it seems to be a slow complicated process. I'm not sure of how accurate the snapshots are, but essentially, the Bitcoin continues to sell, regardless of whether or not new ones are keeping pace. They are already selling them in fractions, which is why their value has gone up.

One would assume, that if someone suddenly dropped the remaining Bitcoin into the market, it would drive down the value of every Bitcoin to adjust. Eventually, the market would adjust the value according to the remaining traders, and would continue to be traded in fractions. The slow process of mining them is probably intended to help provide stability as the total number is produced. Since it is digital, it can be divided infinitely into fractions and adjust appropriately, at least in theory.

What makes it complicated, is that we think of this in terms of real money value. Bitcoin wasn't really made to hold monetary value in another form of currency. Instead, it seems it was created in order to offer an alternative to fiat currencies created and controlled by governments. The value of Bitcoin is only affected by those willing to trade and recognize it.

I am new to Bitcoin, but recently invested in a small amount to explore how it works. I've ran over the basics, and will be doing my own research, but it's always valuable to ask a community for more down-to-earth explanations of things, so here I am.

If you have credible and verifiable information, I would be delighted if you could contribute to this learning process, for myself and other people able to view this thread. If you choose to respond, please cite the specific question you are answering with a designation. (example: "Q1" For multiples, please include the designation before each separate response.)

Thank you, in advance, to anyone that participates.


Please answer the questions, while assuming the following:

I have a Bitcoin Wallet
I have NOT lost any information and have full access to all aspects of said Wallet.
I have Bitcoin in my Wallet, account, etc.

Q1: Can I secure my Bitcoin on paper?

Is there a way that I can write down certain information ON PAPER and store that information in a safe, file cabinet, safety deposit box, etc? If so, can I then SAFELY delete the digital Wallet on my device without losing access to the account and Bitcoins?


Q2: What information about a Wallet IS and ISN'T safe to share with other people?


Q3: What are the different ways a person can convert Bitcoin to U.S. Dollars (USD), and how does it work?


Q4: Is it taxed (either as Bitcoin or once converted to USD), and if so, how is it taxed (form type?), what is it taxed as (income, interest, etc.)?

BONUS QUESTION:

Q5: How do I sell or give Bitcoin to another person?

Let's say it's Christmas, a birthday, special occasion or whatever and I want to gift Bitcoin to someone. How do I do that? Or, on a regular day, how do I sell Bitcoin to a regular person, in real regular life?


Thanks again, in advance, to anyone that can contribute. I hope this helps me, and anyone else interested.