Question 1

Where can I learn more about Bitcoin and crypto?

Accepted Answer

At Bitcoin First Steps, we can provide tailored guidance to help you begin your cryptocurrency journey — no matter what your current experience or knowledge base is. Schedule a one-on-one meeting with us and we’ll walk you through buying and storing your first bitcoin or other crypto, while answering any specific questions you may have and those you don't even know you need to ask.

Question 2

I heard Bitcoin is dead or just a fad. Is that true?

Accepted Answer

While that’s ultimately down to personal opinion, we strongly believe the answer is “no.” The second anything becomes popular, mainstream media outlets like to declare that it’s dead to generate more views, and this has certainly been the case with Bitcoin. In reality, there’s plenty of evidence that the cryptocurrency is doing better than ever before, with various large companies and financial institutions investing in Bitcoin or accepting it as a payment method. Naturally, nobody can guarantee that Bitcoin will become a widely accepted currency in the future, and its value is bound to experience ups and downs (as with any market) — but we suspect it will get stronger and stronger for decades to come. In fact, the country of El Salvador just adopted bitcoin as legal tender. So you are really at the beginning stages of the transformation that is taking place as a result of Bitcoin.

Question 3

What is Bitcoin?

Accepted Answer

Bitcoin is a non-physical form of money — unlike the coins and dollars in your wallet, it only exists virtually. As with PayPal and wire transfers, you can send Bitcoin to other people or between your accounts, but it offers far more than just a convenient way to transfer money. Most importantly, Bitcoin is decentralized, meaning there’s not one single person or company with complete control; instead, a number of people (or rather, their computers) across the globe keep the system running.

Question 4

What is a cryptocurrency?

Accepted Answer

Essentially, a cryptocurrency is a type of digital money. The “crypto” part of the name comes from the cryptographic protocols each coin is built on, which ensure digitalization, decentralization, and security. Meanwhile, the “currency” aspect is self-explanatory, although not everyting people call cryptocurrencies are designed to be exchanged for goods and services — for example some tokens used on blockchain networks to pay fees and reward users for verifying transactions.

Question 5

Is bitcoin the only cryptocurrency?

Accepted Answer

No. Bitcoin might be the most famous cryptocurrency out there, but it’s certainly not the only digital asset — there are thousands of other examples, such as Litecoin and Dash.

Question 6

What is the difference between Bitcoin and other cryptocurrencies?

Accepted Answer

Bitcoin is the most well known cryptocurrency and many consider it the grandaddy of cryptocurrencies.  However, there are thousands of cryptocurrencies — each one differs from Bitcoin in its own way. Common differences include how transactions are verified on the network, the end-use of the currency, the transaction speed, the total supply of the currency, and the level of decentralization.

Question 7

Is Bitcoin money?

Accepted Answer

Yes. While some claim Bitcoin is just a speculative asset, it meets the definition.  Most people would agree that the cryptocurrency is a store of value (it’s been consistently valuable), a medium of exchange (it can be used for transactions), and a unit of account (it denotes a precise amount of value).

Question 8

What is the difference between Bitcoin and banks?

Accepted Answer

Bitcoin consistent with the true philosophy behind the blockchain is decentralized, meaning no one controls your bitcoin except for you. In contrast, banks are centralized— once you deposit your money with them, they retain complete control.  In theory, the bank could decide it doesn’t want to give you access to your funds, and there’s little you can do about it. This isn’t the case with bitcoion — as long as you have your private key and a non-custodial wallet, you’ll always be able to access and withdraw your bitcoin.

Question 9

I’m a beginner. Should I invest in cryptocurrencies other than Bitcoin?

Accepted Answer

Bitcoin First Steps cannot and does not provide investment advice, so you’ll have to make that decision on your own. There are serveral reasons a person may want to start with Bitcoin before delving into alternative cryptocurrencies — as the most popular and established coin, it provides a solid foundation as you learn about the world of blockchain. Some people (often referred to as “Bitcoin maxis”) believe you should only ever invest in bitcoin since it’s the only truly decentralized network, while other cryptocurrencies involve central parties to some degree. Others like to branch out — but if you do decide to experiment with other coins, you may want to stick to coins that meet certain parameters. For more information about other coins, important factors you may want to consider and more, schedule a call with us.

Question 10

Who invented Bitcoin? How did Bitcoin start?

Accepted Answer

“Satoshi Nakamoto” is attributed with creating Bitcoin, although this name is a pseudonym and nobody knows the founder’s true identity. “Nakomoto” published Bitcoin’s whitepaper back in 2009, although it’s believed they started working on the cryptocurrency one or two years earlier. Named Bitcoin: A Peer-to-Peer Electronic Cash System, the paper outlined the framework and mechanisms behind the pioneering concept of a blockchain-based payment system. Using the white paper, developers created an open-source program that took Bitcoin from dream to reality. The rest is history.

Question 11

What is a white paper?

Accepted Answer

It might have a complicated name, but a white paper is simply a document that outlines a topic in detail — kind of like an academic journal paper. Most developers write one of these papers when they release a new cryptocurrency to explain how their creation works and what problems it aims to solve. If you’d prefer to see one of these papers yourself to gain a better understanding, you can check out the original Bitcoin white paper, which is available publicly online.

Question 12

What is a Node?

Accepted Answer

A Node is a computer in a cryptocurrency network. Because the blockchain is decentralized, it relies on various computers and users to verify transactions and keep it running instead of a central authority, so Nodes perform an essential role in the blockchain sphere.

Question 13

Is Bitcoin private?

Accepted Answer

One of the biggest perks of Bitcoin is that it exists on a private, decentralized network. Bitcoin is pseudonymous. All Bitcoin users have a public address (a series of numbers and characters) that can be viewed by anyone on a public ledger showing all transactions, but it doesn’t contain any personal information about individuals.

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