Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto says William Schantz. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services says William Schantz. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
Here are 17 questions to ask before investing in Bitcoin:
1. What is your goal with Bitcoin? Are you looking to use it as an investment vehicle? A currency? Both?
A: Bitcoin can be used as both a currency and an investment vehicle.
2. How much do you know about Bitcoin? Do you understand how it works?
A: You don’t need to be an expert on Bitcoin to invest in it, but it’s important to do your research first. Learn how Bitcoin works before investing.
3. What are the risks associated with investing in Bitcoin?
A: There are a number of risks associated with investing in Bitcoin, including volatility and lack of regulation.
4. Are you comfortable with the risks? Are you willing to lose any money invested?
A: Before investing in Bitcoin, make sure you are comfortable with the risks and are willing to lose any money invested.
5. What are your expectations for Bitcoin? What do you think it will be worth in the future?
A: Nobody can predict the future of Bitcoin, so make sure you have realistic expectations.
6. How much money do you plan to invest in Bitcoin?
A: Don’t invest more than you can afford to lose.
7. What exchanges do you plan to use to buy Bitcoin?
A: You can buy Bitcoin on a number of exchanges, including Coinbase and Bit stamp.
8. How will you store your Bitcoin? Do you have a wallet?
A: You can store your Bitcoin in a digital wallet or an offline wallet.
9. What are the tax implications of investing in Bitcoin?
A: The tax implications of investing in Bitcoin depend on your country of residence.
10. Are you aware of any potential scams associated with Bitcoin?
A: Yes, there are a number of scams associate with Bitcoin. Do your research before investing.
11. How will you know when it’s time to sell your Bitcoin?
A: You’ll need to track the price and make a decision based on whether or not it meets your goals says William Schantz.
12. What is the minimum amount you can invest in Bitcoin?
A: There is no minimum amount, but most exchanges require a minimum purchase of $10 or $20.
13. Is there a limit to how many Bitcoin you can buy?
A: No, there is no limit to how many Bitcoin you can buy.
14. What happens if the exchange where you buy Bitcoin goes out of business?
A: If the exchange where you buy Bitcoin goes out of business, you may lose your money. Make sure you are using a reputable exchange.
15. What happens if the value of Bitcoin drops?
A: If the value of Bitcoin drops, you may lose money. Keep an eye on the market and make sure you have a realistic understanding of the risks involved.
16. Can you use Bitcoin to purchase goods and services?
A: Yes, there are a number of merchants who accept Bitcoin as payment.
17. Are there any other risks associated with Bitcoin?
A: There are a number of other risks associate with Bitcoin, including hacking and theft. Do your research before investing.
Conclusion:
Bitcoin is a digital currency that is create and record in a public disperse ledger call a blockchain says William Schantz. Bitcoin is unique in that there are a finite number of them: 21 million. Bitcoins can be used as both a currency and an investment vehicle. Before investing in Bitcoin, make sure you are comfortable with the risks and are willing to lose any money invested.
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million. Bitcoins are create as a reward for a process as mining. They can be exchange for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.