FAQ

Do People Really Use Bitcoin?

In short, yes. There are millions of transactions of Bitcoins per day, which means that the Bitcoin network is being used frequently. In fact, every day you see more and more businesses starting to accept Bitcoin as a method of payment.

However, it is nearly impossible to give an exact number of how many users are using Bitcoin. The reason is because one person can possess multiple wallets. If someone forgets their wallet address, it doesn’t expire; instead it is still active on the network without any transactions. So adding up all the wallets won’t give us an accurate number of users.

Checking transactions isn’t reliable either since multiple wallets can belong to a single person. This is the dilemma which we as Bitcoin users face. Because of the ability to use Bitcoin with complete anonymity, it is impossible to track how many people are using it on a daily basis.

How Can You Get Bitcoins?

There are four ways to get Bitcoins. The first one is pretty simple and self-explanatory: you offer goods or services in exchange for Bitcoins. No strings attached, just determine the price of your service or goods in BTC and make the exchange.

The buyer will send the appropriate amount of BTC to your wallet and upon receiving it you will provide the requested service or goods.

The second way to get BTC would be to make a purchase through Bitcoin exchange. Generally, there are plenty of different exchange sites available where you can look for buyers and sellers of BTC. You will also need to use your Bank Account, which will be linked to the exchange website to make BTC purchases.

Although there are a few exchanges that let you buy BTC with other methods of payment, such as PayPal, usually there are additional fees involved when using these alternative payment formats.

How Hard Is It To Make Bitcoin Payments?

Often, completing a Bitcoin transaction is easier than making a purchase with a debit card or a credit card. All you need is your wallet address and you can make payments or request Bitcoins through your PC software, mobile application, or web wallet.

You can even create custom QR codes which, when scanned, will automatically put in the amount of BTC you are charging and your address so that all the sender has to do is confirm the information and click send.

There is even an option to use Near-Field Communication (NFC), which most smartphones are equipped with today, to simply press your phone back to back with the seller’s or buyer’s phone and complete the transaction.

Is Bitcoin A Virtual Currency?

The best way we can put it is that Bitcoin is as virtual as a Debit Card or a Credit Card is. While technically Bitcoin does not have a physical form, Bitcoin balances are stored in a large network which distributes the information among the holders of each balance. This network cannot be altered by anyone.

The most convenient way to use Bitcoin remains via your mobile device, but you can purchase physical devices or coins which represent a certain bitcoin balance and contain a wallet address that starts with a single Bitcoin on it. It is impossible for Bitcoin to simply vanish, because they are stored on the Bitcoin blockchain.

So while technically this currency can be considered virtual, in reality it is much more than that.

What Is The Relationship Between Taxes And Bitcoin?

As of right now there is no way for any jurisdiction to effectively tax Bitcoin because it does not belong to any jurisdiction. However, there are quite a few different legislations across many jurisdictions that can potentially cause some type of tax liability to arise eventually regardless of the medium used to generate income.

Unfortunately, the Bitcoin community has no rule over the decisions that jurisdictions make regarding Bitcoin and other virtual currencies.