Questions. Questions. Questions. So many many questions circling the internet related to Bitcoin. The answers? Not as fulfilling and sometimes to freaking complicated to understand by a person who is not aware of the crypto-world as much as we are. So, we’ve decided to answer some Bitcoin questions in the most digestible form ever!
Are We Really Anonymous When We Are Using Bitcoin?
Yes, Bitcoin transactions are anonymous. But, if we look at it technically. Hand to hand cash transaction is still much secure. It’s because there will never be a public record of the transaction for the whole world to see. Bitcoin transactions are all posted on the blockchain and anyone can access it!
Sure, the identity of the user who is involved in the buying and selling with the help of Bitcoin can stay anonymous. But, guess what? There will always be trail which will lead to the transaction and to the wallets address. Isn’t that a shocker??
This concept of almost full anonymity has raised major concerns about the potential utilization of Bitcoin for illegal purchasing and selling of goods. Yet, over the long haul, definitely, Bitcoin will be liable to the same set of rules and regulations which exist on the rest of the budgetary frameworks. But, the reality remains cash will remain more anonymous that Bitcoin.
Can You Lose Your Bitcoin?
Bitcoins are not like lose cash. They are stored in a wallet and that’s exactly you can’t lose the Bitcoins. But, it’s possible to lose your wallet. If it happens, that just means that the Bitcoins are out of the circulation and are not being used. No one will be able to find the private key you need. It’s impossible and the key is what is needed to access each wallet.
So, when a wallet is lost forever. The missing Bitcoins are cancelled out of the law of demand and supply. Which in result actually helps to increase the value of the Bitcoins that are remaining. That’s how the entire process is compensated on an economical scale. It’s a pretty smart system if you ask us!
Is Bitcoin Legal?
You know that the Bitcoin network is decentralized right? There are not many limitations imposed on this digital currency. But, there are some jurisdictions like Vietnam where it is banned and its usage is limited. As the use of Bitcoin is becoming increasingly popular among the masses. Some jurisdictions also go to the extent of limiting the use of Bitcoin related establishment such as the Bitcoin exchange website and services.
There are jurisdictions that have taken steps to make sure there are crystal clear guideline for the businesses and merchants to be able to integrate Bitcoin as a mode of payment into their regulated financial system.
We’ve tried to the best of our abilities to answer these frequently asked questions related to Bitcoin. We would love to get some feedback from you. Also, if you have any more questions related to Bitcoin, crypto or blockchain technology let us know. We will be glad to answer them for you!