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Bitcoin: frequently asked questions (FAQ)

Is the number of bitcoins limited?

Yes, and this is done on purpose. If the digital currency, which is not backed up by anything, could self-reproduce without control, it would instantly go down in value. To avoid this situation, the number of Bitcoins is limited by 21 million. There can’t be any more. This amount is the financial manipulation provided by the computing power of computers.

According to the latest data, the miners managed to get 14 million coins already. But the mining algorithm is continually becoming more complex, that is why the last bitcoin will be mined by the humanity not sooner than by 2140.

How do the bitcoins appear?

The users create them using the computer technology. Solving mathematical problems, they get rewards. Besides, the miners’ computers check the transactions.

What is bitcoin mining?

Mining supports the system and provides users with profit. To mine means to check the authenticity of the transactions in blockchain. For your work, you can get the profit from the system itself and from the direct participants of the transaction. You can’t produce more than 3600 bitcoins a day.

Who’s dealing with Bitcoin emission?

The issue of digital coins is strictly limited. One can become part of the issue only by giving the system the computing power of your computers. If you become a miner (miners are those who earn bitcoins), you will get a reward for the work done.

Users could mine bitcoins only with the help of desktop PCs earlier, but now people join large pools. Cryptocurrency mining is profitable for the owners of large farms.

Is BTC provided with something as a currency?

Cryptocurrency appears against the background of the user demand for it. An analogy with the developing economy of the country, where the gold mining has not been developed, is appropriate here. The direct Bitcoin cost depends on the level of people’s trust in the system, and the willingness to make transactions.

Unlike the financial pyramid schemes, the assets of which are not valuable in the foreign market, cryptocurrencies are in real demand. Bitcoin is convenient; its turnover is supported by large players of financial market and even by some countries.

What is the future of Bitcoin?

Bitcoin is already used as a full-fledged currency for transactions on the Internet. Investors are interested in cryptocoins, they purchase them to exchange them for goods and services later. Just a couple of years ago the bitcoin was a local cryptocurrency, but now it is a common means of financial transactions on the Web.

The cases of issuing official salaries in bitcoins have already been registered. Many coffee houses, restaurants and bars accept cryptocoins. You can buy appliances and housing for them. More and more countries approve the use of bitcoins.

It should be noted that the western states are more favorable to the circulation of cryptocurrency. It is not prohibited by the legislation to pay for purchases with digital coins. Moreover, there are rules introduced, that contribute to the development of the digital money market.

Is Bitcoin used for speculation?

Yes, and quite active. The very principle of bitcoin existence is the alternative to the state financial system. It is considered to be unfair and inefficient, that is why they are trying to replace it. And the cryptocurrencies successfully take up the challenge.

Bitcoin has undergone violent rate swings not once. This attract those who like to speculate on the exchange. They buy coins and try to sell them in large amounts on the eve of the collapse. The bet is not an investment and it makes the rate unstable even more.

What are the advantages of BTC?

This is a currency that is not subject to the state control. Only the direct network participants take place in its formation. It is them who regulate the system, support its stability and reliability. Intermediaries do not take part in transactions, that is why operations are conducted without hidden fees.