Bitcoin FAOs

Q: Is bitcoin the only digital currency?A: No, there are over 700 so-called cryptocurrencies out there. Bitcoin is the best known, with the highest market value, liquidity, and acceptance. Ethereum is a distant second.Q: Are cryptocurrencies safe?A: Episodes of hacking, stealing of bitcoin, and even bankruptcy of exchanges and wallet providers have occurred, but less frequently over time.Q: How volatile are they?A: Cryptocurrencies can be very volatile. Bitcoin has hovered just above US$400 during 2016; it was trading below US$300 in May 2015, but was above US$1 200 in 2013.Q: If it’s so volatile, is it a good investment?A: It is a very speculative investment. And it’s not guaranteed by a central bank or backed by a government. Investors are totally on their own.Q: Is it a good payment system?A: It’s cheaper than many conventional options for remittances or money transfers and can be very convenient for instance for smartphone payments. To the extent that transactions are settled quickly, volatility is less of a problem.Q: How can I buy bitcoin or other cryptocurrency?A: There are many exchanges that sell and buy bitcoin, such as Coinbase, Localbitcoins, and CoinDesk. There are also a growing number of physical automated teller machines, or ATMs, that will convert hard currency into bitcoin.Q: How do I store them?A: The most practical way is to download a digital wallet to a smartphone. As with a real wallet, these are good for small purchases. Storing large amounts is more complex. Some users have a dedicated offline computer (one not connected to the Internet all the time) and use encryption and very strong passwords to protect their funds.Q: Where can I use them?A: Acceptance is still limited but is increasing. A few online retailers accept bitcoin, as do some brick-and-mortar stores.Source: International Monetary Fund

Bitcoin FAOs

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Republikein 2025-06-18

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Bitcoin FAOs

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Republikein 2025-06-18

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