What is a Bitcoin address?

A bitcoin address is a unique identifier which consists of 26-35 alphanumeric characters. The identifier begins with the number 1 or 3, which represents a location where the cryptocurrencies can be sent. The bitcoin user can generate a bitcoin address without any cost. However, the bitcoin address is not permanent, that means it may change for every new transaction.

There are currently three standard address formats in use:

P2PKH: It always begins with the number 1, e.g., 1BvBMSEYvtWesqTFn5Au4n4GFg7xJaNVN2.

P2SH: It always begins with the number 3, e.g., 3J78t1WpEZ72CMnQviedrnyiWrnqRhWMLy.

Bech32: It always begins with bc1, e.g., bc1qat0srrr7xdkvy5l643lxcnw9re59gtzxwf5ndq.

Is it legal to buy and sell Bitcoin from India?

It is not illegal to buy and sell bitcoins in India. There is no law in India which declares it illegal. In India, the cusp of a digital revolution is yet to recognize the cryptocurrency officially. The Reserve bank of India(RBI), which regulates Indian rupee, had earlier cautioned users, holders and traders of Virtual currencies including Bitcoins.

Any central bank or monetary authority do not authorize the creation, trading or usage of Bitcoins as a medium for payment. There are no regulatory approvals, registration or authorization is stated to have been obtained by the entities concerned for carrying on such activities. However, the central bank has not unequivocally banned Bitcoins in the country.

Can stores accept Bitcoins?

As we know, anyone can accept Bitcoin. Many B2B services and hardware installation are available for the convenience of the storeowners. All these business organizations give invoicing and accounting with their services. All third party services are not compulsory. Individuals can also transact and invoice on their own.

What do you mean by Bitcoin Mining?

Bitcoin mining is performed by bitcoin miners(a group of people). The procedure of bitcoin mining is done by specialized computers equipped for solving algorithmic equations. Miners achieve bitcoin mining by solving a computational problem which makes the chain of blocks of transactions. These specialized computers help miners to authenticate the block of transaction held within each bitcoin network. Whenever a new block added into the blockchain, immediately miners get rewards for this new block. The miners get rewards in bitcoin along with transaction fees.

What are the advantages of bitcoin?

Following are the benefits of Bitcoins:

It is accepted worldwide at the same rates, and there is no risk of depreciation or appreciation.
It has the lowest transactional fees in the world.
It has fewer risks and irreversible transaction benefitting merchants.
It is fully Secured and control by the cryptographic encryption algorithm.
It is the transparent & neutral mode of administration as anyone can check data in real-time.

Is Bitcoin Anonymous?

No, bitcoin is not completely anonymous; instead, it is pseudonymous, i.e. every identity is tied with the fake name. It is because each user has a public address, and whenever there are financial transactions occur, the fraudsters will survive to trace that addresses.

How do bitcoin transactions work?

A transaction is a transfer of value between Bitcoin wallets of sender and receiver in the blockchain network. Each bitcoin transaction is composed of an amount. The amount is the input (sending address), an output (receiver’s address), and the private keys that allow spending of Bitcoins from an individual’s account. The blockchain is a database which maintains the transaction history since bitcoin’s inception.

How can you convert Bitcoin into Fiat currencies?

It is very important to know how to cash out bitcoin or withdraw from bitcoins into fiat currency (USD, EUR, INR), which will be acceptable in their native countries. There are some easy ways listed below which convert BTC into USD, INR, EUR or GBP. Before picking any of the listed methods, you need to find out how you want to receive your fiat currency. You can sell Bitcoins in person for cash or can sell it on exchanges and get the money directly into your bank account.

Cryptocurrency Exchange
Bitcoin Debit card
Selling bitcoins
Bitcoin ATMs

Who developed Bitcoin?

Bitcoin was invented by an unknown person Satoshi Nakamoto in the year 2008. But there is no valid proof for this because the person behind bitcoin has never given an interview. It was released as open-source software in 2009. It was the first successful virtual currency designed with faith and equivalent to authorized currency of centralized government. It is a digital currency that uses rules of cryptography for regulation and generation of units of currency. It is commonly called decentralized digital currency.

What are the disadvantages of Bitcoin?

The price of bitcoin is determined by the market in which it trades. It is determined by how much someone is willing to pay for that bitcoin. The market sets the price of bitcoin as same as Gold, Oil, Sugar, Grains, etc. is determined. Bitcoin, like any other market, is subject to the rules of supply and demand. i.e.,

More Demand, Less Supply = Price Goes Up
More Supply, Less Demand = Price Goes Down
No one, in particular, sets the bitcoin’s price nor we can trade it in one place. Each market/exchange determines its price based on supply and demand.