Bitcoin (BTC) – a HOT topic and no stranger to many people in Vietnam as well as in the world, one of the most searched keywords on google in late 2017 – early 2018. So Bitcoin is what? Is it virtual currency, cryptocurrency, digital currency or cryptocurrency? Is there a multi-level scam? And year 2021 should invest in Bitcoin again or not? This article I Love Bitcoin will learn with you from A – Z.
What is Bitcoin (BTC)?
Bitcoin (symbol: BTC or XBT) is the world’s first cryptocurrency created by Satoshi Nakamoto – the pseudonym of the creator of Bitcoin, his identity is still a mystery, Bitcoin uses a peer-to-peer protocol on the Blockchain technology platform for all transactions, ie it completely remove the third-party intermediary, money will be sent directly from one person to another, so the transaction fee is almost zero, no country or organization controls these transactions. .
Bitcoin is a cryptocurrency that represents the anonymous currency of the internet that we collectively call Cryptocurrency (cryptocurrency, digital currency or cryptocurrency), the distinguishing feature of this currency from many people. is that it is anonymous, not controlled by the owner, and the transaction costs are extremely low.
How was Bitcoin born? Who is the creator of Bitcoin?
As I mentioned above, the creator Bitcoin coin is Satoshi Nakamoto in 2009, he used this pseudonym and did not reveal his true identity, until now there have been many people claiming to be and being labeled as the “father” of Bitcoin, but all After that, no corroborating evidence was provided. Therefore, the founder of Bitcoin is still a mystery to this day.
Is Bitcoin a virtual currency and is it a scam?
1. Bitcoin is “virtual money”???
Someone asked me “Is Bitcoin a real currency?” then I would like to answer that Bitcoin is not a Virtual Currency, but in Vietnam and some countries around the world, it has not been recognized as an official currency, speaking of the word “virtual” will usually mean something. is not real, for example, the money you load into the game, can only be used in the game and converted to cash in a community group together, of course the value converted to cash will be much smaller.
As for Bitcoin money, you can buy and sell anytime you want, buy and sell with other people or on exchanges and the cash value received back is true to its real value at that time. Moreover, some large companies and enterprises in the world have allowed payment for their services and products in BTC.
The name of Bitcoin is indeed Cryptocurrency (E-money, cryptocurrency or digital currency is okay), in Vietnam many people are still used to calling it. Bitcoin virtual currency Actually, it’s not true, and it’s hard to blame them because some major newspapers and major crypto blogs in Vietnam still call Bitcoin and other coins virtual money, plus the collapse of many multi-level coins like Bitconnect (BCC), Hextracoin (HXT) so they have more reason to call BTC a virtual currency, BCC or HXT it is very different from BTC, how is it different, I will have an explanation later.
2. Is Bitcoin a scam, multi-level?
I affirm that Bitcoin is not a scam at all, it is completely transparent and public, you can buy / sell at any time at large and small exchanges, in Vietnam as well as around the world. Bitcoin is widely used not only with individuals, but also with large corporate companies in the world such as Microsoft, Newegg, PrivateFly, Overstock.com, Sacramento Kings, TigerDirect, Time Inc, etc..
Most people say Bitcoin scam It’s because they lack understanding, and I also understand why they call Bitcoin a scam, the reasons that I often see like:
- When someone just learns about Bitcoin and wants to buy BTC, they don’t have much knowledge about BTC transactions, they search online and buy from an individual, they transfer money to the seller but the seller does not transfer. give them back BTC => Bitcoin scam 🙂
- The crash of BCC and HXT is also the reason why many people call BTC a multi-level scam, the reason is because when investing in these two multi-level coins, investors will have to buy BTC to deposit and then use it. BTC to buy the system’s coin, thereby receiving interest in USD, and when BCC, HXT collapse => Bitcoin is also a scam 🙂
End hereBitcoin: Bitcoin is not scamming anyone, but just because an individual or organization takes advantage of it to scam others.
What is a Bitcoin (BTC) Wallet?
Just like your cash is used every day, you will need something to store it, or you use a bank card, so is Bitcoin, Bitcoin wallets are used to store and transact (send/ receive) Bitcoin. Each type of Bitcoin wallet will allow you to create “Bitcoin wallet address”, this address is similar to your “bank account number”, you will use this wallet address to send/receive BTC from others.
- Example 1 BTC address: 3CMCRgEm8HVz3DrWaCCid3vAANE42jcEv9
Which Bitcoin wallet is the most reputable and secure today?
There are many types of wallets and services offered Bitcoin wallet different and I will have a detailed article later, here I just take an example of the 2 most popular online wallets that are also the wallets that I often use, which are Blockchain.com and Coinbase.com. See instructions below:
Also, you can see more reputable Bitcoin wallet options here.
Pros and cons of BTC coins
1. Advantages of Bitcoin
Not subject to anyone’s control: Bitcoin is an internet currency, and is not regulated by any government, bank or organization.
Not faked: With paper money can be counterfeited, but Bitcoin cannot, it completely eliminates the problem of counterfeiting, as it does not exist in physical form but is generated by algorithms.
Low and fast transaction fees: If you use a bank or a money transfer service to send money to your loved ones, it will take a considerable fee, as well as take a few days to send abroad, With Bitcoin that fee is extremely expensive. low and time only takes 20 minutes to 30 hours.
Information security and safety: Bitcoin uses an anonymous transaction system (Blockchain), so when you make a transaction, no one will know who you are, where you are.
2. Disadvantages of Bitcoin
Difficult to use for newbies: To buy and sell using Bitcoin requires you to have a little knowledge of the internet, use a computer, if you are new Learn about Bitcoins It will be a bit complicated, but once you get used to it, it won’t be a problem.
Not many people use itBitcoin: Currently, Bitcoin is mainly used for speculative activities, ie it is like a commodity to buy and sell, exchange, but the actual use (such as payment) is not much, although it has been There are quite a few businesses that use it.
Slow transaction speed: The slow transaction speed here is compared to other coins, but compared to fiat currency transactions, BTC is still much faster, because when you send BTC it will need a few steps to confirm the transaction. It will take about 20-30 minutes.
There is no clear legal framework: Currently in Vietnam and most countries around the world there is no clear legal framework for Bitcoin in particular and Cryptocurrencies in general, so if you have a problem with your investment, you will be refunded. fully responsible, and this is also an opportunity for many individuals and organizations to take advantage of Bitcoin to commit fraud. Therefore, when participating in this market, you need to prepare yourself with at least basic knowledge to protect yourself.
Crime and hackers ragingBitcoin: The fact that Bitcoin is not regulated by any country is both an advantage and a disadvantage, criminals can use it to launder money by buying and selling weapons and banned substances. In addition, if you store BTC on exchanges or wallets, there is a possibility of hackers attacking and stealing.
How many Bitcoins are there in the world?
Total Bitcoin (BTC) offer is 21,000,000 VND and this amount of BTC is fixed, no one can change this increase/decrease. Out of these 21 million VND, at the moment I am writing this article, 17,200,425 BTC have been mined and are trading on the market, the rest more than 3 million VND have not been mined yet (This mining part is quite complicated, I I’ll save it for a later post to explain it more clearly).
Units of the cryptocurrency Bitcoin
Any currency will have units, like VND will be dong, USD is cent, and the unit of Bitcoin is Satoshi – this is also the smallest unit of Bitcoin and is named after its founder Satoshi nakamoto.
1 BTC = 100,000,000 Satoshi, ie you can split one BTC to buy and sell, this is also one of the advantages of BTC, suitable for each person’s investment needs.
What is the current Bitcoin price?
At the time of this writing, price of 1 BTC = $6,472.88 USD, equal to about 154,015,397 VND. Looking at the chart below you can see that there was a time when the Bitcoin price surpassed $20,000, about 450 million VND (about December 2017) and it gradually decreased to more than $6,000 now. I’ll tell you why below along with the Should I Invest in Bitcoin? now or not.
You can view and update the rate of Bitcoin and more than 1,500 other coins at the “Coin Rate Table” of I Love Bitcoin.
Is Bitcoin legal in Vietnam and internationally?
In Vietnam, Bitcoin and other coins are not banned but also do not support issues related to Bitcoin and the government has repeatedly warned people to be careful when transacting, Bitcoin investment.
Here in 2018, Vietnam also has a law on Bitcoin that you need to know. As follows :
From January 1, 2018, if you use Bitcoin/Altcoin as a currency, you will be breaking the law. That is, it is forbidden to pay for goods with Bitcoin, you cannot use Bitcoin to buy anything in Vietnam, so it is against the law. But if you use it as a commodity, use VND to buy it, no problem.
In the world, there are many…