Bitcoin: everything you ever wanted to know but were ashamed to ask

With Bitcoin’s recent highs, the encrypted currency has never been more valued and in evidence than in recent days. However, if you are not aware of the technology, the Digital Gaze prepared a guide with the 10 most common questions and answers involving currency. Check-out:

1. Is Bitcoin anonymous?

Despite offering a high level of privacy, Bitcoin is not anonymous and can be traced. All transactions are recorded in an extensive public data list.

2. Can anyone buy Bitcoin?

Yes. There is no restriction. You just need to follow the steps of each website that performs the service and bears the rates set by them. This tutorial teaches you how to buy the currency on the Bitcoin Market page .

3. How much is a Bitcoin worth?

Bitcoin is going through the best phase of its history. At the time of publication of this report, it is valued at US$1,925.47 (about R$6,400, at the current price). The maximum amount recorded by the currency, according to data from Poloniex, was $1,940.88.

Bitcoin: everything you ever wanted to know but were ashamed to ask

4. Is it safe?

It varies. In theory, Bitcoin is safe and your money is protected in the digital environment. However, you need to take some precautions, such as keeping your passwords well protected and not falling for internet scams.

5. It is common to see hackers blackmailing users in exchange for Bitcoins. Because?

As stated above, Bitcoin is one of the most secure and confidential ways to carry out a financial transaction. Despite being traceable, it is possible to use fake identities to make the purchase of digital currencies, something that is not possible with transactions involving dollars, for example.

6. What is mining?

Unlike real money, which is printed on paper money, Bitcoin is born out of mining. Miners help the network maintain transaction security and are rewarded for doing so in Bitcoins. It works like a decentralized data center. Mining, however, is not easy and requires a high expenditure of electricity.

7. Who invented Bitcoin?

It is known that the coin’s code name is Satoshi Nakamoto. However, there is no concrete information about who this person really is. In 2016, Australian Craig Wright said he had evidence that he, using the pseudonym, created the digital currency. Weeks later, changed his mind and said he would not prove such claims .

Bitcoin: everything you ever wanted to know but were ashamed to ask

8. Are there other digital currencies besides Bitcoin?

Yes and a lot of them, each with its own characteristics. Currently, the most well-known currencies besides Bitcoin are ethereum, dash, monero, litecoin and syscoin. Their value, however, is still a long way from Bitcoin. The most valued is ethereum, which is worth $97.12 (about $315.40).

9. Do I need to declare income tax?

Yes. Even if Brazil doesn’t officially consider Bitcoin a currency, if you have some units saved, you will have to inform the IRS and maybe pay tax for that. For Revenue, Bitcoin is a taxable financial asset and must be included in the “Others” category of the statement.

10. Can I buy products and services using Bitcoin?

Yes. Currently, there are a lot of products and services that can be purchased for payment in Bitcoin. In Japan, for example, the possibility of paying electricity bills using digital currency was being studied

Bitcoin: everything you ever wanted to know but were ashamed to ask

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