1. What is a Bitcoin?
A Bitcoin is an electronic currency, AKA Cryptocurrency, that lives on the internet. There is no physical “coin” anywhere, just a string of numbers. It’s based on an emerging tech called block-chain, where the transactions are logged in a string of blocks, linked together to make a chain.
According to the Bitcoin website, “Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen”.
Bitcoin is pretty much like cash for the internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence, relates users.
2. What is the amount of Bitcoins out there?
There are currently 16.73 million Bitcoins in circulation. There can never be more than 21 million Bitcoins, ever. No actual circulation of these numbers can be seen, however, because some coins have been lost forever from theft and computer/human error. The number of new Bitcoins created per year is automatically halved over time until their creation is halted completely with a total of 21 million.
3. Is Bitcoin the sole Cryptocurrency?
No. There are over a thousand different electronic-based cryptocurrencies. There are 1,910 of them listed. Around which they sum up to $240 billion. There is a lot of money in these markets!
4. How to Buy and sell a Bitcoin?
Bitcoins can be bought and traded on exchanges, kind of like the stock market. Coinbase is one of the more widely known exchanges. Others include itBit and Gemini in the U.S. People are able to buy and sell Bitcoins with multiple currencies.
5. How do you store/save your coins?
The safest way to store your Bitcoins is to use what is called “cold storage.” This is where you store your reserve of Bitcoins offline. It could be on a USB flash drive or paper wallet. Then people can keep them in a safety deposit box or somewhere secure. The key is it’s offline and not connected to the internet, so no risk of being hacked. Some people do save them on their computers or on exchanges. there, hacking is a concern.
Wish you all the best,