FAQs

FUD FAQs for Bitcoin. Fear, Uncertainty, and Doubt and Frequently Asked Questions for Bitcoin. This FAQ is designed to provide simple understandable and accurate answers to frequently asked questions and to assist Bitcoin supporters in defending Bitcoin against FUD attacks. This service is intended to be community-driven. If you have new questions or better answers please post them in the comments.

Why is China opposed to Bitcoin?

China is opposed to Bitcoin because its independence competes with their State controlled cryptocurrency, the Digital Yuan.

Bitcoin is too expensive!

The total number of bitcoins is forever limited to 21 million. There are ~45 million millionaires in the world. If half of them bought 1 Bitcoin, anyone owning 1 bitcoin would be a millionaire.

Bitcoins are divisible into 100,000,000 units called Satoshis, which is the unit most often used by the Lightning Network. A common Bitcoin investment phrase is “Stacking Sats“.

Source: Wikipedia

Is Bitcoin used by criminals?

Only 0.34% of all Bitcoin transactions in 2020 involved criminal activity – down from 2.1% in 2019. This data was derived from a detailed analysis of the Bitcoin blockchain, one of the huge benefits of Bitcoin’s immutable ledger and transaction transparency. Source: Chainalysis

Is Bitcoin a currency?

Bitcoin is on its way to becoming a viable day-to-day currency with the rollout of the Lightning Network.

Who owns the Bitcoin network?

No one. Bitcoin is like the Internet. Bitcoin is an open-source public protocol that is supported by developers, miners, node operators, exchanges, and numerous software vendors. This distributed dedicated community is one of Bitcoin’s core strengths.

Can I earn interest on Bitcoin?

Yes, there are several sites that pay interest on Bitcoin. The rates range from about 4-6% APY

Is Bitcoin legal?

Yes, Bitcoin is legal in nearly all countries. Source: Investopedia

What is the Lightning Network?

The Lightning Network is a second layer of computers that run on top of the Bitcoin network. It provides nearly instantaneous and nearly free bitcoin transactions. It is still under rapid development and in the early stages of deployment.

What is a Bitcoin wallet?

A bitcoin wallet is an application that manages and stores the unique secret keys that represent your ownership of bitcoin. There are software wallets for Windows, Mac, iOS, Android, and a variety of hardware wallets (they look like dedicated USB devices and provide more secure offline storage).

How much energy is consumed by Bitcoin mining?

Bitcoin mining consumes 110 Terawatt Hours per year — 0.55% of all global electricity production. Source: Harvard Business Review, May 2021

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