What is Bitcoin ?
Bitcoin is a digital currency that allows transactions to be made without a central authority interference.Bitcoin is one of the already existing cryptocurrencies which is peer to peer open source software.
Whats a cryptocurrency ?
A cryptocurrency is a medium of exchange, such as the US dollar, but is digital and uses encryption techniques to control the creation of monetary units and to verify the transfer of funds.
What is Bitcoins’ origin ?
Bitcoin was designed and created by programmer(s) by the name Satoshi Nakamoto.
Is Bitcoin trading legal ?
The use and trade of Bitcoin is legal in a majority of countries however some governments are concerned about its potential threat as a money laundering tool and its going concern as it majorly depends on the market forces of demand and supply and its characteristic of being a virtual currency.Currently bitcoin trades as a source of currency as users exchange bitcoins for goods and services.
Is it safe to trade in Bitcoins ?
Yes it is safe to trade in Bitcoin however there are many fraudsters taking advantage of lack of sufficient information and risks involved therein in trading. As much as it its return is high and transactions can take as low as 10 minutes, one should have high technical competence and alertness while trading especially if you are trading as a block and therefore wise to have a financial expert to guide you through the process.
Whats the price of 1 Bitcoin ?
The price of Bitcoin varies with from exchange platform to another depending on whether you are buying or selling. The price is also controlled by the market forces of demand and supply and will vary from time to time. The average price of a Bitcoin is: 1 Bitcoin = $50,602 OR 1 Bitcoin = Ksh 5,566,220 (averagely as at 16/02/2021)
How can one buy bitcoins?There are companies that are approved bitcoin exchange centers with both international and local approval. Popular international Bitcoin exchanges include Bitsquare, Coinbase etc while local exchanges include Bitpesa , coindirect etc.
What form of Currency/exchange can be used to buy Bitcoin ?
Bitcoin can be purchased through a digital market place, through which you can fund your account with your currency of choice,and place an order on the open market.Bank transfers are the most popular mode of payment.
How are bitcoins stored ?
Bitcoins can be transferred from a bitcoin exchange to one of many available (locally & Internationally) bitcoin wallets ranging from online options to ‘cold storage’
What is Blockchain ?
Blockchain is a decentralized ledger of all transactions across a peer-to-peer network. Using this technology, participants can confirm transactions without a need for a central clearing authority.
Take in- From a business perspective, blockchain technology might be the next-generation business process improvement software. Collaborative technology, such as blockchain, promises the ability to improve the business processes that occur between companies, radically lowering the “cost of trust.” For this reason, it may offer significantly higher returns for each investment dollar spent than most traditional internal investments.Financial institutions are exploring how they could also use blockchain technology to upend everything from clearing and settlement to insurance. Therefore this might be the next generation trading platform. Companies that will have a good investment in blockchain technology will have a return on investment of 1000% plus.
Whats the relationship between Bitcoin and Blockchain ?
Bitcoin is powered by blockchain technology.
Why use blockchain ?
Using a blockchain ensures security and manages digital relationships as part of a system of record.
Note : As much as it is seen as the most emerging type of currency which is highly liquid , it is also keen to note that extra caution needs to be taking while investing as the value highly depends on market forces of demand and supply
By Cpa Sammy Aloyo Director Accmak Global Consultants
{Cpa/Cifa/Aca/Emba} Website : accmakglobalconsultants.co.ke