Bitcoins Explained ~ Part 2

Very interesting!!!  Hope you are learning about Bitcoins and how they are being used. Become a founding member.  Only 2 more weeks.

Bit coins

What can you buy with them?

You can buy anything from any company that accepts Bitcoins as currency. There aren’t that many of them. However, privacy activists have lauded the ability of Bitcoins to preserve the anonymity of political dissidents to publish online in countries where Internet access is restricted. The Freedom of the Press Foundation says that Bitcoin “offers the potential for a censorship-resistant currency.” One of the more popular uses for Bitcoin, however, seems to be the purchase of illegal drugs, because like cash the transactions are harder to trace, but unlike cash, they can take place over long distances. “When you’re talking about normal American consumers, is there anything legal they can get with Bitcoins that they can’t get with dollars or with their credit card?” Grinberg says. “I think the answer is no.”

Why do people say Bitcoins are easier for criminals to use?

Bitcoins provide a certain amount of anonymity for users, because the accounts are just numbers and not necessarily linked to an individual identity. You can also create a new wallet for each new Bitcoin transaction, further hiding your identity. But it’s not completely anonymous, says Grinberg. Bitcoin users who reveal information to third parties, either a Bitcoin wallet provider or even through joining pools to mine Bitcoins, are making it more likely their identities could be discovered. But because all Bitcoin transactions are public, it’s theoretically possible that you could use the account numbers to discover someone’s identity. “It’s possible that using statistical techniques and information that’s publicly available you could find out a great deal about Bitcoin users,” Grinberg says. Also if you’re using a third-party Bitcoin wallet, the feds have a number of ways to compel corporations to reveal user information when it comes to matters of national security.  This is what the US government has to say because they hate not getting their taxes. Stop and think about having off shore accounts, how easy it for them to make those banks give up their account holders?

Can you use Bitcoin to avoid taxes?

Yes, in the same way you could use cash to avoid taxes. The more that people use Bitcoin this way, however, the more likely that governments will get better at finding people who do so. “Just like people who accept cash, it’s generally easier to evade taxes,” says Grinberg, “but as a large-scale tool to evade taxes,” he’s “not sure” it would work. If you earn income with your Bitcoins, you technically still have to pay taxes on them.

Can they be hacked?

Bitcoin wallets and exchanges can be hacked. “There’s plenty of stories where Bitcoin exchanges have been hacked,” says Cato’s Harper. “One of the weaknesses of Bitcoin by far is that people don’t know very well how to secure their Bitcoin.” Of course, identities can be stolen and regular bank accounts hacked too.

Which famous people use Bitcoins?

Ashton Kutcher pic

Ashton Kutcher’s venture capital firm, A-Grade Investments, invested in a Bitcoin pay network, according to Beta Beat. And BuzzFeed speculates that there has to be at least a few Bitcoin millionaires, although they only managed to track down a Reddit user claiming to be one. So if celebrities are using Bitcoins, they’re not bragging about it. Who should be the next Bitcoin celebrity spokesperson? Users in this Bitcoin forum note that Sean Penn, Charlie Sheen, President Obama, and the woman who “works for Fox Sports and also plays the character ‘Chelsea’ on TNA Wrestling on Spike TV” would all make good candidates.

Will Bitcoins ever replace national currencies?

That seems like a long shot right now but one never knows. Think what they use to say about cell phones? Never.. “There’s enough to be cautious about with Bitcoin that I don’t see whole countries abandoning their currency and using Bitcoin,” Harper says, although he argues that Bitcoin could be useful to people in countries without a stable currency.

In which other countries can you buy Bitcoins?

We began by looking at which countries had the most downloads of bitcoin software and then calculated the trends over time and within context of a number of other factors. Worth noting: while this likely serves as a reasonable proxy, it is not inclusive of all bitcoin users, as hosted wallets, thin wallets and holdings at exchanges would not be reflected here.



Watch this please and then message me if you are interested in joining. Bitcoins went from $55.00 when we bought to $847.00 today. They said it would never last.

About Debi

I am a retired nurse. Wife, mother of three and 2 wonderful grandchildren. “Watch your thoughts, for they become words. Watch your words, for they become actions. Watch your actions, for they become habits. Watch your habits, for they become character. Watch your character, for it becomes your destiny”
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