• Breaking News

    Saturday, October 2, 2021

    Home Unlabelled Bitcoin Bitcoin Newcomers FAQ - Please read!

    Bitcoin Bitcoin Newcomers FAQ - Please read!

    October 02, 2021

    Bitcoin Bitcoin Newcomers FAQ - Please read!

    Bitcoin Newcomers FAQ - Please read!

    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 or bitcoin directory 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

    Coinmap and AirBitz are helpful to find local businesses accepting bitcoin. A good resource for UK residents is at wheretospendbitcoins.co.uk.

    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
    [link] [comments]

    Daily Discussion, October 02, 2021

    Posted: 01 Oct 2021 10:07 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
    [link] [comments]

    Why mod ban this video like china ban bitcoin?

    Posted: 01 Oct 2021 08:49 PM PDT

    So true ☺️☺️

    Posted: 01 Oct 2021 11:13 PM PDT

    El Salvador's move into volcano-powered bitcoin mining makes the case that bitcoin can act as an accelerant to renewable energy development. Geothermal energy is renewable, it's clean, and in some places, it makes use of a previously untapped resource.

    Posted: 01 Oct 2021 11:42 AM PDT

    Jack Mallers and CNN's Julia Chatterley Part 1: "If we're all on the same standard, in the same way we're all on the same internet - interoperability & connectivity becomes seamless, instant & free."

    Posted: 01 Oct 2021 04:58 PM PDT

    Fiat down, Bitcoin up.

    Posted: 01 Oct 2021 10:30 PM PDT

    A reminder that we are all still wayyyyyyy early

    Posted: 01 Oct 2021 04:51 PM PDT

    Jack Mallers and CNN's Julia Chatterley Part 2: "I expect to go well into the 6 figures this year."

    Posted: 01 Oct 2021 04:59 PM PDT

    Class of ‘90 HS Reunion tonight…not one I spoke to knew the first thing about BTC.

    Posted: 01 Oct 2021 08:21 PM PDT

    Still very early folks! These were bankers, doctors, lawyers, and other professionals. Buy and Hold my friends.

    submitted by /u/davidpmicklock
    [link] [comments]

    “If stock market experts were so expert, they would be buying stock, not selling advice.” — Norman Ralph Augustine

    Posted: 01 Oct 2021 01:19 PM PDT

    El Salvador announces gas discount for those who pay with government bitcoin wallet

    Posted: 01 Oct 2021 05:59 PM PDT

    My biggest fear with Bitcoin and crypto in general.

    Posted: 01 Oct 2021 04:32 PM PDT

    Those who are not naturally distrustful of the government or critically-minded probably will think I'm nuts, as already evidenced by some of the comments. Please keep in mind that I'm approaching this topic as a PRO-bitcoiner, not a FUD spreader. I may get downvoted to oblivion, but I don't care. This is a topic that isn't discussed enough, and I don't understand why people don't think about this more. I'm invested, and I'll continue to invest in Bitcoin for the next few years. So here goes…

    My biggest fear is that the CIA/Government created Bitcoin and is planning an eventual rug pull that will lead to the biggest wealth transfer in world history into the hands of the elites.

    Think about it. Who would want a Central Bank Digital Currency from the government? Nobody.

    Enter Bitcoin. Built upon the hashing algorithm SHA-256 (which was originally designed by the NSA), and designed by some supposedly benevolent, anonymous creator (Satoshi Nakamoto) with a name that literally translates to "Central Intelligence" in Japanese. People flock to it with the dream that it will help them conquer the corrupt financial system by hedging against inflation and allowing them to make decentralized transactions. As it picks up adoption…celebrities, bankers, and big companies start buying it up. Enamored by promises of wealth and financial freedom, everyone ignores the uncomfortable fact that the creator of Bitcoin has 1 million coins and could easily tank the market just by activating his wallet. "He's dead or forgot his keys" we reassure ourselves.

    By 2030, 80%-90% of the worlds population has invested their wealth and savings into this digital asset. Suddenly, Satoshi's wallet wakes up one day and begins to sell-off massive amounts of Bitcoin. Major investors rush to sell off their holdings as the price plunges into a free-fall collapse. Within 24 hours, the value of Bitcoin is decimated. Millions across the world lose their life savings. But it's to late. Satoshi (or the elite group who may be Satoshi) have transferred the bulk of the world's wealth to themselves.

    At this point, the world governments and banks swoop in to offer their new traceable, trackable, controllable digital currency.

    Revelation 13:16-17: "It also forced all people, great and small, rich and poor, free and slave, to receive a mark on their right hands or on their foreheads, so that they could not buy or sell unless they had the mark, which is the name of the beast or the number of its name."

    That's my biggest fear. Never in history have the elites lost control of the financial system. And I think it's short-sighted to believe they don't have a plan for Bitcoin. I'll still keep buying it in the short term as it's making me money. But I'm not going to be a 10-30+ year HODLER like everyone else. In the next 5 years, I'll be transferring all my crypto into physical assets like food, land, etc… Call it FUD, call it what you want. Nobody knows who Satoshi is though. Nobody knows why he hasn't touched his wallets which contain a massive amount of wealth. And no, "he forgot his keys" isn't a valid argument. You really think the man who designed Bitcoin couldn't keep track of his own keys?

    The only possible explanation that could absolve us of any worry is that he is dead. And that's a big gamble for the long-term. No sane human would leave that amount of wealth untouched while alive, unless they had a nefarious purpose and were waiting to sell it until a later date to facilitate the biggest wealth transfer in world history.

    EDIT: Really appreciate the constructive replies that actually address my points instead of bashing me for a Bible verse. Whether you believe in the Bible or not isn't important, my primary arguments about Satoshi still stand regardless. The verse at the end was an added effect that I probably could have excluded without detracting from my original points. Although, based on the numerous comments accusing me of being on drugs, excluding the verse may have made no difference. Again, I genuinely appreciate the thoughtful replies, and I'm glad we can have a constructive discussion.

    submitted by /u/maroonblood94
    [link] [comments]

    CNBC: "El Salvador just started mining bitcoin with volcanoes for the first time ever – and they've already made $269"

    Posted: 01 Oct 2021 05:34 AM PDT

    “Buy bitcoin before its too late, you wont be laughing in a few years”

    Posted: 01 Oct 2021 01:05 PM PDT

    $200 Million worth of Bitcoin shorts liquidated over night (12h) 40k+ “traders” rekt

    Posted: 01 Oct 2021 06:02 AM PDT

    The title speaks for itself - don't short Bitcoin. 🌽

    Data - https://www.bybt.com/LiquidationData

    submitted by /u/undergroundinvestin
    [link] [comments]

    This will likely be the last time you be able to buy Bitcoin at 40k.

    Posted: 01 Oct 2021 08:15 AM PDT

    It's unbelievable where we are at with Bitcoin, where even the might of a powerful nation like China can't break the momentum of the evolution.

    Never before in the history of humanity, has a decentralized currency been adopted on a national level, like Bitcoin has. Let that settle in, a sovereign nation has not only accepted Bitcoin, but also implemented it into their entire economy. That should be mind-blowing!

    The chain of events that will likely lead to a dozen counties to follow suit by end of 2022 has already been set in motion. By 2025 it will likely be adopted by most countries.

    Unbelievable, what we are witnessing. I continue to buy $20 of Bitcoin every week, not only for the imminent return, but because I want to be part of that revolution.

    submitted by /u/Karmaa
    [link] [comments]

    Big Green Candle

    Posted: 01 Oct 2021 05:02 AM PDT

    Oct 1 and we already got a big green candle

    submitted by /u/Rambalamda
    [link] [comments]

    There is currently 1 public comment under this Bitcoin ETF application and it is FUD. We need positive public commentary on these applications.

    Posted: 01 Oct 2021 12:15 PM PDT

    Does anyone else find waiting for bitcoin transactions stressful ?

    Posted: 01 Oct 2021 08:49 PM PDT

    It's always a stress somehow , although all my transactions have turned up .

    submitted by /u/Ok_Astronaut_7973
    [link] [comments]

    Hodlers fighting anti bitcoin FUD

    Posted: 02 Oct 2021 12:50 AM PDT

    CNN: "Most cryptos will fail, but bitcoin could be here for good".

    Posted: 01 Oct 2021 08:14 AM PDT

    Only buying BTC in October

    Posted: 01 Oct 2021 11:48 AM PDT

    I made a challenge to myself to only buy Bitcoin for the entire month of October… anyone want to join me?

    submitted by /u/decadeinvestor
    [link] [comments]

    Bitcoin Price Jumps After Powell Says U.S. Has No Plans to Ban Crypto

    Posted: 01 Oct 2021 06:45 PM PDT

    I am never ever selling.

    Posted: 01 Oct 2021 05:41 AM PDT

    I don't care what the price gets to, owning Bitcoin will be all you ever need.

    There is no exit strategy!

    submitted by /u/SnooDonuts2975
    [link] [comments]

    I miss the maxis in this sub

    Posted: 01 Oct 2021 12:43 PM PDT

    That's it. Too many crypto bois here.

    submitted by /u/ANAL-Inverter-2000
    [link] [comments]
    Read more
    at

    No comments:

    Post a Comment