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Do Yo u K no w Wh

at a B i tcoin I s?


To start off, the best definition of what a Bitcoin actually is that I was able to find was this-a decentralized digital currency based on an opensource peer-to-peer protocol. Translation-a nonphysical item that's tracked through a database that functions as a ledger that records, and processes debits and credits between two parties. One important thing to add is that it is not attached to any government or entity, so they are decentralized, and has no counter party risk. (In theory)


As always, each person should always do their own homework before doing anything that is monetary. With that said, the questions, and then of course the answers that followed that I found most interesting were. Q: If the bitcoin price system is internet based, what if the internet goes down? A: All Bitcoin accounts would be frozen in time and when the system is back up, your account would be intact. No different from your online banking, credit cards, or ATM machines.


Q: Can Bitcoins be debased? A: Only to a certain extent. Bitcoins get created every ten minutes based on a formula, and cannot exceed 21 million Bitcoins, ever. That would be the most amount allowed created according to the programs software. Each Bitcoin can be broken in 100 million pieces, allowing for them to increase in value and still be useable in smaller purchases.


Q: Who is behind Bitcoins, is there a company or entity? A: Nobody is behind Bitcoins. It is a self-governing software program that has artificial intelligence attributes working on a predetermined schedule, and the codes cannot be changed.


Q: What if I want to remove my Bitcoins from the system and convert them to cash? A: Bitcoins will be exchanged for cash at exchange locations, as well as, with any person that is willing to exchange them for a rate that is agreeable to both parties.


Q: Can one look at Bitcoins as not just a digital currency, but also as an investment? A: Yes, but one considered highly speculative due to the fact that there are no guarantees that people will decide to use them, and their newness in general.

Do you know what a bitcoin is  
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