Frequently Asked Questions
1What is Bitcoin?
Bitcoin is a digital currency that is used to make payments of any value. It runs on a blockchain, a decentralised transparent ledger that is kept running by “miners” whose powerful computers solve transactions and are rewarded in bitcoins. This is how bitcoins are “unearthed” and brought into existence. The difficulty of transactions increases over time, making it harder and harder to mine as it gets closer to total supply of 21 million. At the time of writing, there are currently 16,711,825 in circulation. People see value in money free from government control and the fees banks charge; as well as the blockchain, to verify transactions. Bitcoin is not about making people rich, but allowing people to be free.
2What is a Blockchain
A digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly. This takes out the middleman (banks) and makes all transactions capable of being audited on the ledger publicly. It is constantly growing as ‘completed’ blocks are added to it with a new set of recordings. The blocks are added to the blockchain in a linear, chronological order.
3How do I invest?
Cryptocurrencies can be bought and traded from exchanges or traded locally between friends, family or strangers with the help of third party apps which help you locate buyers / sellers in your area. For beginners, we suggest using the Coinbase app (link to the right) as they hold your “private keys”. This will leave your Bitcoin, Bitcoin Cash, Ethereum & Litecoin (the 4 cryptocurrencies offered) safe in the event of a lost phone, computer or password.
4What is an ICO?
ICO stands for Initial Coin Offering. It’s an event, sometimes referred to as a crowd-sale, that last for a certain amount of time or until a set goal is reached. When a company releases its own cryptocurrency with a purpose of funding, it usually releases a certain number of crypto-tokens for sale at a discounted rate. New “Tokens” are most commonly in exchange for Bitcoin and Ethereum as these have liquid value. It is most similarly related to an IPO for a stock but instead of shares, you receive ‘tokens’.
5Should I buy?
We say yes! The FIRST best time to buy bitcoin was in 2009, the second best time is right now! Ultimately, that’s for you to decide and we are here to help! Contact us today to find the right blockchain investment solution for you.
6What is a Fork?
A hard fork in the cryptocurrency world is pretty controversial, it basically means that a potentially upcoming update will conflict with older versions. A lot of people say this isn’t in the ethos of cryptocurrencies. So all the users would have to ensure they run the update. With a soft fork, quiet a lot of these have happened with cryptocurrencies. Specifically, these are updates to the protocol that don’t conflict with the current version. An update here isn’t mandatory by users. With cryptocurrencies as there decentralized forking is a little more tricky than it would be for a typical organization, as all of those connected to the ecosystem such as miners have to agree on the decision that needs to be made. Only then can a fork occur.