Bitcoin Bitcoin Newcomers FAQ - Please read!

Bitcoin Newcomers FAQ - Please read!
Daily Discussion, October 12, 2021
Hate on Coinbase all you want. I just sold a tiny amount of BTC and chose their new "instant cash out" option which cost 55 cents. Checked my bank account 15 seconds later and the funds were there.
“i personally think bitcoin is worthless” Jamie Dimon - Chase CEO ��
El Salvador Saves #Bitcoin �� The Movie �� - Link -> https://twitter.com/KevinSvenson_/status/1447734302188441600?s=20
How I spent 29 bitcoin at 16
Someone just bought this $63,000 watch with BTC
#Bitcoin is on its way to infinity
Jamie Dimon Calls Bitcoin Useless AGAIN!! That TRANSLATES to : HE IS REALLY BULLISH AND HE IS BUYING AGAIN!
5 Countries Will Accept Bitcoin as Legal Tender by End of Next Year, Says Bitmex CEO
If you have more than 1 BTC, you are in the top 1.73% of Hodlers
JPMorgan CEO Jamie Dimon questions 21 million bitcoin cap
The current US debt is more than 1 Bitcoin for every single person in America.
Vitalik is Wrong About Bukele’s Bitcoin Mandate
While all other crypto 'projects' were trying to hoodwink you, putting crypto lipstick on their centralized corporate pigs, the Bitcoin community was just quietly getting on with rigorously testing the Lightning Network.
Swiss think tank initiates vote to add Bitcoin in federal constitution
When will Satoshi win the Nobel Prize in Economics?
So I was just getting notification texts for transferring my bitcoin and my girlfriend looks over and asks, what hoes are texting you at 9:45? I said babe its just my Crypt-hoes.
JP Morgan Was Bullish Last Week…Now Today Comes Out With A Bearish Statement…These Institutions Are Playing Mind Games Through The Media…Trillions are being poured into bitcoin right now for those ETFs that about to hit the market ��
GM vibe check
"If El Salvador’s poorest can benefit from bitcoin, everyone can."
What happens when you get informed by fake news, Buterin about El Salvador
Now I Know the Meaning of VISIONARY = MAX KEISER after watching this video. If only we have done our own research. The reason I really urge younger generation to start investing early. So you can learn your lessons along the way and even make fortunes.
Bakkt crypto exchange partners with Google for payments
YouTube just pulled Anthony Pompliano’s channel.
Bitcoin inches towards $58k, new retail investors have yet to join the ‘party’

Posted: 18 Jul 2021 11:56 AM PDT

Welcome to the /r/Bitcoin Sticky FAQ

You've probably been hearing a lot about Bitcoin recently and are wondering what's the big deal? Most of your questions should be answered by the resources below but if you have additional questions feel free to ask them in the comments.

It all started with the release of Satoshi Nakamoto's whitepaper however that will probably go over the head of most readers so we recommend the following articles/books/videos as a good starting point for understanding how bitcoin works and a little about its long term potential:

Some other great resources include Michael Saylor's Hope.com and "Bitcoin for Everybody"' course, Jameson Lopp's resource page, Gigi's resource page, and James D'Angelo's Bitcoin 101 Blackboard series. Some excellent writing on Bitcoin's value proposition and future can be found at the Satoshi Nakamoto Institute.

If you are technically or academically inclined check out developer resources and peer-reviewed research papers, course lectures from both MIT and Princeton as well as future protocol improvements and scaling resources. Some Bitcoin statistics can be found here, here and here. MicroStrategy's Bitcoin for Corporations is an excellent open source series on corporate legal and financial bitcoin integration.

You can also see the number of times Bitcoin was declared dead by the media (LOL) and what you could have earned if you didn't listen to them! XD

Key properties of Bitcoin

Limited Supply - There will only ever be 21,000,000 bitcoin created and they are issued in a predictable fashion per the inflation schedule. Once they are all issued Bitcoin will be truly deflationary. The halving countdown tells you how much time until the next drop in block rewards.
Open source - Bitcoin code is fully auditable. You can read and contribute to the source code yourself.
Accountable - The public ledger is transparent, all transactions are seen by everyone.
Decentralized - Bitcoin is globally distributed across thousands of nodes with no single point of failure and as such can't be shut down similar to how Bittorrent works. You can even run a node on a Raspberry Pi.
Censorship resistant - No one can prevent you from interacting with the bitcoin network and no one can censor, alter or block transactions that they disagree with, see Operation Chokepoint.
Push system - There are no chargebacks in bitcoin because only the person who owns the address where the bitcoin resides has the authority to move them.
Low fee scaling - Most wallets calculate on chain fees automatically but you can view fee estimates and mempool activity if you want to set your fee manually. On chain fees may rise occasionally due to network demand, however instant micropayments that do not require confirmations are happening via the Lightning Network, a second layer scaling solution currently rolling out on the Bitcoin mainnet.
Borderless - No country can stop it from going in/out, even in areas currently unserved by traditional banking as the ledger is globally distributed.
Trustless - Bitcoin solved the Byzantine's Generals Problem which means nobody needs to trust anybody for it to work.
Pseudonymous - No need to expose personal information when purchasing with cash or transacting.
Secure - Blocks and transactions are cryptographically secured (using hashes and signatures) and can't be brute forced or confiscated with proper key management such as hardware wallets.
Programmable - Individual units of bitcoin can be programmed to transfer based on certain criteria being met
Nearly instant - From a few seconds on the lightning network to a few minutes on-chain depending on need for confirmations. Transactions are irreversible by normal users after one confirmation and irreversible by anyone (including miners) after 6 confirmations.
Peer-to-peer - No intermediaries taking a cut, no need for trusted third parties.
Portable - Bitcoin are digital so they are easier to move than cash or gold. They can be transported by simply carrying a seed (a string of 12 to 24 words) on a device or by memorizing it for wallet recovery (while cool, memorizing is generally not recommended due to potential for forgetting the seed and the potential for insecure key generation by inexperienced users. Hardware wallets are the preferred method for most users for their ease of use and additional security).
Scalable - While the protocol is still being optimized for increased transaction capacity, blockchains do not scale very well, so most transaction volume is expected to occur on Layer 2 networks built on top of Bitcoin.
Divisible - Each bitcoin can be divided down to 8 decimals, which means you don't have to worry about buying an entire bitcoin.
Designed Money - Bitcoin was created to fit all the fundamental properties of money better than gold or fiat

Where can I buy bitcoin?

Bitcoin.org and BuyBitcoinWorldwide.com are helpful sites for beginners. You can buy or sell any amount of bitcoin (even just a few dollars worth) and there are several easy methods to purchase bitcoin with cash, credit card or bank transfer. Some of the more popular resources are below, also check out the bitcoinity exchange resources for a larger list of options for purchases.

You can also purchase in cash with local ATMs. Services such as CardCoins let you purchase bitcoin with prepaid gift cards. If you would like your paycheck automatically converted to bitcoin use Bitwage.

Note: Bitcoin are valued at whatever market price people are willing to pay for them in balancing act of supply vs demand. Unlike traditional markets, bitcoin markets operate 24 hours per day, 365 days per year.

Securing your bitcoin

With bitcoin you can "Be your own bank" and personally secure your bitcoin OR you can use third party companies aka "Bitcoin banks" which will hold the bitcoin for you.

If you prefer to "Be your own bank" and have direct control over your coins without having to use a trusted third party, then you will need to create your own wallet and keep it secure. If you want easy and secure storage without having to learn computer security best practices, then a hardware wallet such as the Trezor, Ledger or ColdCard is recommended.
If you cannot afford a hardware wallet there are many software wallet options to choose from depending on your use case. Mobile wallets like BlueWallet are generally more secure than desktop wallets. Beware of fake mobile wallets and check reviews from reputable Bitcoin websites. Avoid paper wallets or brain wallets.
If you prefer to let third party "Bitcoin banks" manage your coins, try Gemini or Unchained Capital but be aware you may not be in control of your private keys in which case you would have to ask permission to access your funds and be exposed to third party risk. There is a saying in the community, "Not your keys, not your coins" meaning if you don't store your coins in a wallet that you control the keys to then you do not really own your bitcoin as you have to ask permission from the third party in order to move them.

Note: For increased security, use Two Factor Authentication (2FA) everywhere it is offered, including email!

2FA requires a second confirmation code or a physical security key to access your account making it much harder for thieves to gain access. Google Authenticator and Authy are the two most popular 2FA services, download links are below. Make sure you create backups of your 2FA codes.

Avoid using your cell number for 2FA. Hackers have been using a technique called "SIM swapping" to impersonate users and steal bitcoin off exchanges.

Google Auth	Authy	OTP Auth	andOTP
Android	Android	N/A	Android
iOS	iOS	iOS	N/A

Physical security keys (FIDO U2F) offer stronger security than Google Auth / Authy and other TOTP-based apps, because the secret code never leaves the device and it uses bi-directional authentication so it prevents phishing. If you lose the device though, you could lose access to your account, so always use 2 or more security keys with a given account so you have backups. See Yubikey or Titan to purchase security keys.

Both Coinbase and Gemini support physical security keys.

Watch out for scams

As mentioned above, Bitcoin is decentralized, which by definition means there is no official website or Twitter handle or spokesperson or CEO. However, all money attracts thieves. This combination unfortunately results in scammers running official sounding names or pretending to be an authority on YouTube or social media. Many scammers throughout the years have claimed to be the inventor of Bitcoin. Websites like bitcoin(dot)com and the r / btc subreddit are active scams. Almost all altcoins (shitcoins) are marketed heavily with big promises but are really just designed to separate you from your bitcoin. So be careful: any resource, including all linked in this document, may in the future turn evil. As they say in our community, "Don't trust, verify".

Avoid using ad-based search engines like Google or Yahoo: ads are shown based on how much the advertiser bids, and scammers can easily outbid legitimate providers for ad space, since immoral ways of earning money are far more lucrative than moral ways. Use DuckDuckGo instead, which has no ads, and never tracks you as well.
Ignore private messages offering services.
Never enter your seed words in a website of any kind. Hardware wallets will recover by displaying possible seed words on their own interface, never on a website.
Always check addresses on your hardware wallet before sending or receiving. Some malware has been known to replace addresses in your web browser or that you copy-and-paste.
Avoid clicking on links like that look like links, such as https://www.google.com/, without first hovering over it and actually checking where they go to. Just because a link is labelled with an HTTPS address does not mean it actually sends you to that address. It is trivial for someone to comment a link on Reddit that looks like it will send you to one website when it actually sends you to another, and you might not notice the difference until a scammer has gotten all your money, or you have downloaded and installed software that steals your money.

Common Bitcoin Myths

Often the same concerns arise about Bitcoin from newcomers. Questions such as:

Is Bitcoin a Ponzi scheme?
Will governments ban Bitcoin?
Will quantum computers break Bitcoin?

All of these questions have been answered many times by a variety of people. Here are some resources where you can see if your concern has been answered:

Where can I spend bitcoin?

Check out spendabit, bitcoin directory or Coinmap for millions of merchant options. Also you can spend bitcoin anywhere visa is accepted with bitcoin debit cards such as the CashApp card or Fold card. Some other useful site are listed below.

Store	Product
Bitrefill, Gyft	Gift cards for thousands of retailers worldwide including Amazon, Target, Walmart, Starbucks, Whole Foods, CVS, Lowes, Home Depot, iTunes, Best Buy, Sears, Kohls, eBay, GameStop, etc.
Spendabit, Overstock and The Bitcoin Directory	Retail shopping with millions of results
NewEgg and Dell	For all your electronics needs
Piixpay, Bitbill.eu, Bylls, Coins.ph, LivingRoomofSatoshi, Coinsfer, and more	Bill payment
Menufy and Takeaway	Takeout delivered to your door
Expedia, Cheapair, Destinia, Abitsky, SkyTours, the Travel category on Gyft and 9flats	For when you need to get away
Cryptostorm, Mullvad, and PIA	VPN services
Namecheap, Porkbun	Domain name registration
Stampnik	Discounted USPS Priority, Express, First-Class mail postage

There are also lots of charities which accept bitcoin donations.

Merchant Resources

There are several benefits to accepting bitcoin as a payment option if you are a merchant;

1-3% savings over credit cards or PayPal.
No chargebacks (final settlement in 10 minutes as opposed to 3+ months).
Accept business from a global customer base.
Increased privacy.
Convert 100% of the sale to the currency of your choice for deposit to your account, or choose to keep a percentage of the sale in bitcoin if you wish to begin accumulating it.

If you are interested in accepting bitcoin as a payment method, there are several options available;

Can I mine bitcoin?

Mining bitcoin can be a fun learning experience, but be aware that you will most likely operate at a loss. Newcomers are often advised to stay away from mining unless they are only interested in it as a hobby similar to folding at home. If you want to learn more about mining you can read the mining FAQ. Still have mining questions? The crew at /r/BitcoinMining would be happy to help you out.

If you want to contribute to the bitcoin network by hosting the blockchain and propagating transactions you can run a full node. You can view the global node distribution for a visual representation of the node network.

Earning bitcoin

Just like any other form of money, you can also earn bitcoin by being paid to do a job.

Site	Description
WorkingForBitcoins, Bitwage, Cryptogrind, Coinality, Bitgigs, /r/Jobs4Bitcoins, BitforTip, Rein Project	Freelancing
Lolli	Earn bitcoin when you shop online!
OpenBazaar, Purse.io, Bitify, /r/Bitmarket	Marketplaces
/r/GirlsGoneBitcoin NSFW	Adult services
A-ads, Coinzilla.io	Advertising

You can also earn bitcoin by participating as a market maker on JoinMarket by allowing users to perform CoinJoin transactions with your bitcoin for a small fee (requires you to already have some bitcoin).

Bitcoin-Related Projects

The following is a short list of ongoing projects that might be worth taking a look at if you are interested in current development in the bitcoin space.

Project	Description
Lightning Network	Second layer scaling
Liquid, Rootstock and Drivechain	Sidechains
Hivemind	Prediction markets
Tierion and Factom	Records & Titles on the blockchain
BitMarkets, DropZone, Beaver and Open Bazaar	Decentralized markets
JoinMarket and Wasabi Wallet	CoinJoin implementation
Decentralized exhanges	Decentralized bitcoin exchanges
Keybase	Identity & Reputation management
Abra	Global P2P money transmitter network
Bitcore	Open source Bitcoin javascript library

Bitcoin Units

One Bitcoin is quite large (hundreds of £/$/€) so people often deal in smaller units. The most common subunits are listed below:

Unit	Symbol	Value	Info
bitcoin	BTC	1 bitcoin	one bitcoin is equal to 100 million satoshis
millibitcoin	mBTC	1,000 per bitcoin	used as default unit in recent Electrum wallet releases
bit	bit	1,000,000 per bitcoin	colloquial "slang" term for microbitcoin (μBTC)
satoshi	sat	100,000,000 per bitcoin	smallest unit in bitcoin, named after the inventor

For example, assuming an arbitrary exchange rate of $10000 for one Bitcoin, a $10 meal would equal:

0.001 BTC
1 mBTC
1,000 bits
100k sats

For more information check out the Bitcoin units wiki.

Still have questions? Feel free to ask in the comments below or stick around for our weekly Mentor Monday thread. If you decide to post a question in /r/Bitcoin, please use the search bar to see if it has been answered before, and remember to follow the community rules outlined on the sidebar to receive a better response. The mods are busy helping manage our community so please do not message them unless you notice problems with the functionality of the subreddit.

Note: This is a community created FAQ. If you notice anything missing from the FAQ or that requires clarification you can edit it here and it will be included in the next revision pending approval.

Welcome to the Bitcoin community and the new decentralized economy!

submitted by /u/BitcoinFan7
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Daily Discussion, October 12, 2021

Posted: 11 Oct 2021 10:03 PM PDT

Please utilize this sticky thread for all general Bitcoin discussions! If you see posts on the front page or /r/Bitcoin/new which are better suited for this daily discussion thread, please help out by directing the OP to this thread instead. Thank you!

If you don't get an answer to your question, you can try phrasing it differently or commenting again tomorrow.

Join us in the r/Bitcoin Chatroom!

Please check the previous discussion thread for unanswered questions.

submitted by /u/rBitcoinMod
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Hate on Coinbase all you want. I just sold a tiny amount of BTC and chose their new "instant cash out" option which cost 55 cents. Checked my bank account 15 seconds later and the funds were there.

Posted: 11 Oct 2021 09:51 AM PDT

submitted by /u/nakasatamooshito
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“i personally think bitcoin is worthless” Jamie Dimon - Chase CEO ��

Posted: 11 Oct 2021 06:44 PM PDT

submitted by /u/yummynothing
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El Salvador Saves #Bitcoin �� The Movie �� - Link -> https://twitter.com/KevinSvenson_/status/1447734302188441600?s=20

Posted: 11 Oct 2021 06:36 PM PDT

submitted by /u/bankoncrypto
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How I spent 29 bitcoin at 16

Posted: 11 Oct 2021 03:28 PM PDT

Back when I was young, around 2015. I got into bitcoin, it was amazing, exciting and brand new.

I immediately saw the utility and value going up, it was enough to make my young eyes glisten. However in my wisdom, I only saw a single use case at the time. I saw bitcoin as a currency, not something to be held and stored.

I found these 'dark web' stores where you could spend bitcoin and get stuff delivered!?! Amazing. I felt like I was in a thriller movie for a little bit of trees. During my time as a teen, I did this again, and again. I spent 29 bitcoin. At the time, this wasn't much, just my minimum wage job paying me enough to do something with it.

Here I am, 6 years later. Struggling financially, investing in crypto and just wishing I had held it. $1.6 million USD, what a life changing amount.

I dont know why I am posting this, but if I could say one thing to each and every one of you it would be to hold. Just hold, don't regret it years later like me.

submitted by /u/throwaway11121121112
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Someone just bought this $63,000 watch with BTC

Posted: 11 Oct 2021 05:42 PM PDT

submitted by /u/crmjewelers
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#Bitcoin is on its way to infinity

Posted: 11 Oct 2021 06:15 PM PDT

submitted by /u/SID1318
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Jamie Dimon Calls Bitcoin Useless AGAIN!! That TRANSLATES to : HE IS REALLY BULLISH AND HE IS BUYING AGAIN!

Posted: 11 Oct 2021 11:07 PM PDT

submitted by /u/Telugucryptodaily
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5 Countries Will Accept Bitcoin as Legal Tender by End of Next Year, Says Bitmex CEO

Posted: 11 Oct 2021 07:16 AM PDT

submitted by /u/fataleclipze
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If you have more than 1 BTC, you are in the top 1.73% of Hodlers

Posted: 11 Oct 2021 09:36 AM PDT

submitted by /u/Ok-Breakfast1
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JPMorgan CEO Jamie Dimon questions 21 million bitcoin cap

Posted: 11 Oct 2021 05:32 PM PDT

submitted by /u/jack_murray
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The current US debt is more than 1 Bitcoin for every single person in America.

Posted: 11 Oct 2021 09:53 PM PDT

If you look at the US national debt, you'll see that right now it's at $28.4 Trillion. That's $86,025 for every single person in America.

Currently, 1 Bitcoin is traded at roughly $57k.

Even if you put together all the 21M Bitcoins that will ever be in existence at the ATH price, that wouldn't be enough to pay the US debt. You would be about $27 Trillion short.

submitted by /u/nullama
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Vitalik is Wrong About Bukele’s Bitcoin Mandate

Posted: 12 Oct 2021 12:39 AM PDT

submitted by /u/bdinu89
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While all other crypto 'projects' were trying to hoodwink you, putting crypto lipstick on their centralized corporate pigs, the Bitcoin community was just quietly getting on with rigorously testing the Lightning Network.

Posted: 12 Oct 2021 01:19 AM PDT

Hello scale

submitted by /u/bitcoinferret
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Swiss think tank initiates vote to add Bitcoin in federal constitution

Posted: 11 Oct 2021 12:23 PM PDT

submitted by /u/Phreesion
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When will Satoshi win the Nobel Prize in Economics?

Posted: 11 Oct 2021 05:18 PM PDT

His whitepaper in , 9 pages, put the blueprint out for a solution that

i) Spawned a 2T market cap industry

ii) Created an incentive structure for independent actors to operate truthfully in maintaining a financial system

iii) Created one of the most robust security models known to date

iv) Lead to an entire nation state adopting a new legal tender

v) Motivated an entire segment of our global population to be ACTUALLY interested in economics

And obviously we could list another 1000 tangential accomplishments that came from this whitepaper. Obviously I know he did not singularly implement it but it is safe to say without his amazing foresight we could easily have never had this version of the industry.

I saw this on CNN today:

https://edition.cnn.com/2021/10/11/business/nobel-prize-economics-winner-2021-intl/index.html

Some guy predicted the effects of shifting the minimum wage. Not saying that isn't good work but objectively the impact is not even 1% of the way there.

Is it the case that these awards go out after x period of years? To be fair if he doesn't ever win it, I feel like it is more of a sign that the system is nepotistic and flawed but I also think if he does win then it is an important societal validation.

/rantover

submitted by /u/christianc750
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So I was just getting notification texts for transferring my bitcoin and my girlfriend looks over and asks, what hoes are texting you at 9:45? I said babe its just my Crypt-hoes.

Posted: 11 Oct 2021 06:47 PM PDT

submitted by /u/DustyRoosterMuff
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JP Morgan Was Bullish Last Week…Now Today Comes Out With A Bearish Statement…These Institutions Are Playing Mind Games Through The Media…Trillions are being poured into bitcoin right now for those ETFs that about to hit the market ��

Posted: 11 Oct 2021 09:37 PM PDT

Last week institutions are all bullish, chamath said in a recent interview trillions are coming in

https://youtu.be/p7WEstY8unc

Than also last week you have this as a news headlines

https://news.bitcoin.com/jpmorgan-institutional-investors-dump-gold-for-bitcoin-better-inflation-hedge/

Than today JP Morgan changes course and says something completely different

https://ca.finance.yahoo.com/news/jp-morgan-ceo-jamie-dimon-questions-21-million-bitcoin-cap-201117274.html

submitted by /u/bpra93
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GM vibe check

Posted: 11 Oct 2021 08:55 AM PDT

submitted by /u/NeedleworkerNo2874
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"If El Salvador’s poorest can benefit from bitcoin, everyone can."

Posted: 12 Oct 2021 03:19 AM PDT

submitted by /u/migu3333l
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What happens when you get informed by fake news, Buterin about El Salvador

Posted: 11 Oct 2021 02:21 PM PDT

Hi! First time posting here.

This is my opinion about what Buterin said, I'm salvadorian and maybe I'm not the regular salvadorian but if the law didn't require big businesses to accept bitcoin most likely I wouln't be able to pay in the supermarket. I work online and I receive my payments in bitcoin. I found online jobs as my salvation for the moment while I find something better, here in the country I haven't been able to find a job in my field as a creative artist and illustrator.

Our law says that those businesses must accept bitcoin but they're not forced to receive them. How so? Thru the national wallet Chivo they have the option to instantly convert the bitcoins they're receiving into US dollar. And the government has repeatedly said that it's fully optional to receive bitcoin. Now with that said, we, salvadorians, know that there is plenty of fake news in the internet created to make El Salvador look like dumb and I know it myself because as a content creator in the internet these people have contacted me to create fake news for them. Many of these news didn't tell all the truth about what is happening here. These news have created the notion that Nayib is a dictator and evil person to their target auience, which Buterin fits into. Now, about the ideal of freedom that Buterin talks about, we're still free to use or not bitcoin, AND if the law didn't require busineses to accept bitcoin who would have that freedom restricted would be me.

The thing is that bitcoin was adapted to our reality as a society and not as a simple technology and they didn't just leave the people on god's will to whatever happens to them. Buterin was right that some people was scammed but again, the government has announced they're going for these scammers. I don't agree with many things about Nayib but the thing is that all salvadorians have to push to take our country out of where it was in the past and this just gives me the feeling that even with some mistakes (the government's app failed a lot at it's launch, for example), at least we are giving little stept and not being in the same position forever as a country.

submitted by /u/migu3333l
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Now I Know the Meaning of VISIONARY = MAX KEISER after watching this video. If only we have done our own research. The reason I really urge younger generation to start investing early. So you can learn your lessons along the way and even make fortunes.

Posted: 12 Oct 2021 01:53 AM PDT