FAQ about Bitcoin, Blockchain and Cryptocurrencies

in LeoFinance5 months ago

Here are the frequently asked questions you may have heard about Bitcoin, blockchain, and cryptocurrencies. The answers provided below are not scientifically approved and are merely a personal view and understanding. Some of the answers are only there to make you laugh. Others - to make you question reality and do your own research on the topic.

Let's go!

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What is Bitcoin?

There are many definitions of what Bitcoin is. Some say it's digital gold. Others claim it's digital cash. In simple terms, it's a digital asset built on the strongest computer network that powers the blockchain, is decentralized, and has never stopped working since the day it launched. In simple terms, you get Bitcoin for helping the network sustain itself but you can also buy it as a store of value against the filthy fiat currency.

Then there are other definitions. They may sound crazy at first but once the veil is lifted, you'll see the truth yourself. Personally, I prefer all the crazy definitions. Here's how Michael Saylor put it:

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And this one's from me:

'' Bitcoin is a manifestation of the collective consciousness breaking free from the system that has enslaved us for centuries.'' - Crypto Bag

To sum up - Bitcoin is changing the world. One block at a time. Bitcoin is like the grandfather of the whole cryptospace. And the start of the financial evolution. If you ever get the chance to go back in time, tell yourself to buy Bitcoin. That way you'll never have to worry about your financial situation and you could spend your time helping others and enjoying life on its own.


What is a blockchain?

In simple terms, it's what crypto technology is built upon. What happens on the blockchain, stays on the blockchain. There are many blockchains out there, for example, HIVE on which LeoFinance is built upon. Everything I write will stay here as long as the hive blockchain is online.

Each blockchain has explorers where you can see all the metrics about it. If you visit blockchain.com/explorer, you'll see Bitcoin's blockchain, all the transactions, and important data about it.

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In other words, each cryptocurrency is built upon a blockchain. It's a big ledger of data that's always online and always in motion. Blockchain is changing the world by transferring wealth to those who are willing to learn and work for the community.


What is an altcoin?

Every cryptocurrency that's not Bitcoin is an altcoin where alt means alternate. Even though many Bitcoin maximalists out there are saying they won't touch an altcoin, most of the cryptospace is into altcoins.

For your information, there are more than 7000 different altcoins and many are coming out every single day. Yes, most of them turn into a pump and dump shitcoins but some have the potential to break into the top of the crypto market.


Is Bitcoin better than other cryptocurrencies?

Apples to oranges. Bitcoin was the first. Altcoins followed. When Ethereum launched as an ICO in 2014th, you could buy 2000 Ethereum for 1 BTC. Seven years later you can only get 20 Ethereum for 1 BTC. Not bad for an altcoin, right? The cryptospace has seen tremendous gains and huge losses but what matters, in the end, is - if the crypto survives once a bear market comes.

Many of the top cryptos from the bull run of 2017 have died and only a few have remained. Those that are still here have kept rising in price alongside Bitcoin. You will never go wrong when you buy Bitcoin but that's not the case for altcoins. When Bitcoin goes down 50%, an altcoin can go down by 99%.


What are private keys?

It's what you never share with anyone. It's what you never input in a computer that's connected to the internet. It's what you store as if your life depended on it. And not only your life. Lives and wealth of your kids and their kids.

There's also a saying ''Not your coins, not your crypto.'' It means that if you're storing your Bitcoin using a centralized exchange where you don't have an access to your private keys, you'll lose your crypto if something happens to the centralized entity, for example, a hacker attack.


What is DeFi?

DeFi means decentralized finance. To understand better, centralized finance is where there's one governing force, for example, banks. Decentralized finance is built with smart contracts with no need for the middleman. To govern the protocol and development, most of the DeFi projects have their own token. Holders of these tokens can make decisions.


getting rid of banks, eh?


How to DeFi?

The easiest and cheapest way to start your DeFi adventure is cubdefi.com because it's built by the lions, for the lions. Not only can you multiply your assets by putting them on a farm, but you also have the opportunity to make generational wealth. Read more about CUBs in my short review.

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The top DeFi tokens are now UNI on Ethereum, CAKE on BSC, and RUNE on Thorchain.

I believe that with all the new additions that are coming to CUB's, we'll soon become a known name in the DeFi-verse. Kingdoms FTW!


What is a crypto wallet?

A Crypto wallet is where you store your cryptocurrencies. Each cryptocurrency has its own blockchain on which a crypto wallet is built upon. Some wallets support multiple blockchains and there are also single-chain wallets. What matters is if you own the private keys. If yes, then store them like you would store gold in the middle-ages.

As seen in the gif, there are many types of crypto wallets. Everyone can choose what fits their needs the best. I'm mostly using MetaMask wallet for my Ethereum, BSC, Matic, and other transactions, and Trust Wallet for other cryptos. Speaking about HIVE and Leo, we have our own on-chain wallets and our own exchange called hive-engine where we can trade tokens created on top of hive blockchain.


How to earn crypto?

The easiest way to start earning crypto is by writing on the hive blockchain, preferably with one of the tribes such as Leo/CTP/ProofOfBrain and others. Not only will you earn HIVE, but you'll also earn various hive-engine tokens from each of the tribes that you're posting on.

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Read 33 reasons why you should be using HIVE blockchain and be amazed!


Can I mine crypto?

Yes and no. It depends on which crypto you are going to mine. For example, if you want to mine Bitcoin, you'll need to invest a lot of money to get something out of it. The best way to mine and get crypto, in my opinion, is by creating crypto content online. If you can do better and create a product and a community, your consistency will pay off!


How to make money with crypto?

Buy low. Sell high. Invest in DeFi. Write articles. Engage with others. Participate in initiatives and contests. Create your own product or sell your skills. Create NFT's. Flip shitcoins. Learn and earn. There are so many possibilities that it's hard to count. Better listen to Dua Lipa.

If she decided to do a crypto version of this song, I'd help with lyrics:

'' One Bitcoin is all it takes. Falling in love with chains. Possibilities.''


Can Bitcoin be banned?

Yes and no. Yes, some countries can decide to ban Bitcoin or other cryptocurrencies as forms of payment BUT none of them can take down the Bitcoin network. They can ban only the centralized exchanges but not DEXs (decentralized exchanges). It has proven to be true that after a government decides to ban crypto, it gets even more popular.


Imagine that!


Is crypto the future?

Blockchain technology has been disrupting various industries since day one. What started as a payment system that requires no middleman, ended up to be changing the world. More and more use-cases for crypto appear every day. Getting into crypto now can be compared to getting into web development in the nineties. Yes, most of the companies eventually went broke but those who remained have become worth billions, for example, Amazon.


Will you come on-board?


What about taxes?

Hats off to Michael Saylor for spreading the word. How can you tax something that exists in your mind? What if you lose it in a boat accident? I'm saying, to hell with the greedy government because we can govern on our own. Get inspired by listening to this.

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What is LeoFinance?

It's a place where crypto enthusiasts, holders, and content creators meet each other. They read, write comments and articles, play games, participate in initiatives, or even create ones and build their community to become the number one source of crypto-related information. The LeoFinance community has called RUNE and AVA before they went on their mad runs. Those who listened got some crazy returns!

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Is Elon Musk giving away Bitcoin?

No and no. There are so many Elon Musk scams out there that you can't even keep up. You need to know that nobody willing to give you crypto will ask you to send crypto to him. It's a scam that many fall for. I hope you're not one of them.


You won't get 2 BTC for sending 1 BTC no matter what the website elonmuskgiveawayblogspotxmsfasd.com is saying.


What is Ethereum?

If we can compare Bitcoin to gas then Ethereum is like oil. If you're saying Bitcoin is like gold then Ethereum is silver. You can also say that Bitcoin is like a grandfather to all the cryptocurrencies out there and Ethereum is like its son. If Bitcoin is God, Ethereum is Jesus. I think you get it.

They are both here to change the world into a better place and make the bankers shit in their pants.


Who is Satoshi Nakamoto?

Satoshi Nakamoto is a pseudonym of a guy who created Bitcoin. Nobody knows the true identity of Satoshi and if he's even a human. Maybe it was a group of people. There are many theories out there but the fact is that Satoshi left the Bitcoin scene in 2011 and never returned. At least not as Satoshi. He also never touched his wallet.

Nowadays, in the name of the creator, we call the smallest unit of Bitcoin, Satoshi. That's why you're people are talking about stacking sats.


Who is Vitalik?

Vitalik is the guy who created Ethereum. Even though he's a public person, we can never know if he's truly a human being. Vitalik has done a lot for both crypto and decentralization. With ETH 2.0, we may see the biggest transfer of wealth ever seen.


There are many memes about the guy but that's what you deal with when you're one of the biggest names in the industry!


Can Bitcoin go to zero?

Yes but if we take into account that millions of Bitcoin will never be recovered, it's impossible to sell all the Bitcoin. Yes, if the blockchain dies and everyone decides to turn off their miners, Bitcoin will probably die but as long as we're here, nothing is going to stop the change. Unless we go into full-blown nuclear war or an alien attack, we should be good. Remember to take profits and enjoy the ride!


In the cryptospace, I feel like an explorer, every single day! Finding new projects, movements, and communities, being a part of them, and watching it all grow! What a time to be alive!


Can Bitcoin go to infinity?

We saw this one on Simpsons and everyone knows how good they are at predicting things. As long as the dollar supply keeps increasing while the Bitcoin supply remains the same, Bitcoin's price should go up. It usually happens in cycles and now we're in a bull run of a cycle.
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Yes, it won't go to infinity but I believe that the top is not in, not yet.


Thank you for reading! Keep learning and thrive!


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This is an outstanding FAQ. Thanks for your hard work putting it together in an engaging format. !BBH

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