Is it legal at all?
Yes, it is. Bitcoin is an open-source protocol and software. Each user has access to the bitcoin source codes. There have been certain attempts by Russia to impose certain restrictions on it, but the rest of the world remains open to Bitcoin. For more info visit: bitlegal
Can I buy bitcoins using PayPal?
It’s possible that you come across a user who would want to carry out bitcoin transactions over PayPal, but it’s quite unlikely. The main reason behind this were repeated attempts to misuse this method, when, after the transaction, a false statement appeared, that the items weren’t delivered and the sender required their money back. That’s the main reason why most people have started to steer away from PayPal. Credit cards users experienced the same problems.
There aren’t enough bitcoins. Can they be divided?
Yes, they can. Each bitcoin can be divided up to 8 decimal places.
What are the names of the individual bitcoin units?
This has been the subject of public debate, but the currently recognized units are the following:
1 BTC = 1 Bitcoin
0.01 BTC = 1 cBTC = 1 Centi-Bitcoin (or alternatively Bitcent)
0.001 BTC = 1 mBTC = 1 Milli-Bitcoin (or alternatively mbit, em-bit or millibit)
0.000 001 BTC = 1 μBTC = 1 Micro-Bitcoin (or also u-bit, yu-bit, microbit)
The only exceptions is the ‘satoshi’, the smallest possible value
0.000 000 01 BTC = 1 Satoshi
This unit was named after the inventor of Bitcoin.
What gives Bitcoin its value?
Firstly, the value of Bitcoin depends on the supply and demand on the market. But Bitcoin mainly gains its value from its decentralization, when it is completely impossible to counterfeit this currency. It’s also very convenient for bitcoin users that they can send and receive any amount of money with anyone all over the world. This makes Bitcoin really unique.
Do I store bitcoins on my hard disc?
No, you don’t. What you store (on your disc or on paper) is the key to your bitcoin address. The bitcoin address is used for issuing orders of transaction for bitcoins (which are stored in the bitcoin network).Although the bitcoin network is publicly accessible and each user can view balances of individual addresses, only owners of the keys can carry out bitcoin transactions.
How many people are mining bitcoins?
The exact number is not known. We only know the hash rate (processing power) of the bitcoin network, but we can’t find out about hash rate of an individual user. In any case, it’s estimated that there are a couple of thousands of users.
What is Bitcoin backed by?
It’s not backed by anything. The system relies on people’s trust. But it’s safe to say that none of the regular currencies today is backed by gold, as it used to be before. They are only backed by people’s trust that banknotes will always retain their value.
Is Bitcoin used for illegal purposes?
Sometimes it is, as it sometimes happens with dollars, euros or crowns. Today, drugs and weapons are mainly traded for dollars or euros paid in cash, which are much harder to trace than bitcoins themselves..
Is it not just a bubble that will burst?
No, it’s not. This is just a hoax that probably has its origin in on-line discussions under articles on the bitcoin subject. People in these discussions very often speculate on the decline in the value of the bitcoin. We therefore recommend using reliable sources of information. Not everyone contributing to these discussions is a bitcoin expert which gives rise to such needless speculations.