In the following we will provide five facts about the cryptocurrency Bitcoin you should definitely know.
- The inconsistency of the price
The Bitcoin price is very volatile and not consistence. Which means it can decrease and increase over a short period of time and keeping and trading Bitcoins is still pretty risky.
- Transactions are irreversible
Bitcoin payments can only be refunded by the receiver and cannot be reversed once done. Consequentially it means you should always be careful and check the trustworthiness and reliability of the business or person you are interacting with. Usually, it is not possible to make transactions with invalid addresses by mistake.
- Privacy and Bitcoins
Bitcoin is not anonymous and it needs a bit of work to protect your privacy. The storage happens public, though the user remains anonymous until information gets revealed through a purchase.
- Importance of confirmation
It takes around 10 minutes for a transaction to be confirmed. Unconfirmed payments are not secure. The confirmation score shows how hard or easy it is to reverse a transaction.
- Government involvement
The cryptocurrency Bitcoin is not an official currency which means often it is still required to pay taxes (income, sales, payroll, capitals gains) on your Bitcoin. It is each users own responsibility to make sure to check and pay taxes and other legal regulations by the government.