What are the pros and cons of using Bitcoins as a currency?
Pros:1. Works everywhere where there’s Internet (which is, like, everywhere on Earth plus Low Earth Orbit). It makes PayPal and Visa look like rednecks!(an artist’s rendition of PayPal and Visa)2. It’s not possible for your account to be closed, your funds to be seized, or your transactions to be blocked. If you’ve had at least one of them happen to you (as many people have), you know how annoying it can be, while here the system is designed from the ground up to not allow these things.3. No fraudulent charges. If a transaction is not cryptographically-signed by you, it doesn’t count - simple as that.Cons:1. You pay the processing fee when you shop, however, merchants have calculated their prices to account for them paying the fees (like you have with credit cards). I’m not sure I’ve seen many shops that give you a discount for paying with Bitcoin, as they should, since you’re saving them the credit card processing fees!2. With all the rights, you also get some responsibilities - you have to protect your private key (the “spending key”); if you lose it, or if it’s stolen from you, the money is gone.Neutral:1. No chargebacks. It’s like cash, once you’ve paid, that’s it. This can be a pro or a con depending on the situation. However, if you don’t like it, you can get an escrow from e.g. Bitrated (not affiliated; I haven’t actually used them, but I noticed they’re pretty cheap, sometimes even free).2. It’s very volatile, since the supply is fixed (it’s basically like gold in that regard). You never know how much bread you can buy for 1 BTC… will it be worth more next month? Less? Well, you kind of have to guess :D This can be good or bad, depending on which way it goes.
Are Bitcoin and other cryptocurrencies the future of currency?
To understand this one must understand a few things about currency. Any currency as a medium of exchange is backed by the full faith of the issuing government. This means that the government that issues for example the dollar backs its use and is responsible for guaranteeing some aspect of its value. More importantly, a currency is only as good as the value it's users assign to it. For example, lets take 2 currencies, the US dollar and the Euro. If Americans are confident that $1 can buy them a loaf of bread at the store whereas Europeans are not, then the value of $1 increases. If the Europeans start panicking thinking (mind you - just thinking!) that a loaf of bread will cost more say 2 Euros tomorrow, then there is a run on the Euro and the value of the currency starts crashing. This is called inflation and in this specific case is governed by demand and supply. Consumers no longer demand the currency and lose faith that it carries any store of value. This scenario happened in Zimbabwe earlier during this century.Pre-1970's, the US dollar used to be backed by Gold. That meant that the US backed the value of all its currency in circulation to the gold reserves it carried. Nowadays, the US dollar is backed by the faith in the US government and the confidence of the American consumer (not totally of course) more so, the faith of the international consumer in the US dollar.With regard to Bitcoin, I don't see it backed by anything not a precious metal nor a government. If it was to be a future currency, most probably, this would occur if consumers placed a lot of faith in its ability to serve as a medium of exchange and as a store of value. I stand to be corrected or clarified on this. My answer is a bit simplistic.
What will the future hold for Bitcoin now that US regulators have declared it as a commodity?
US regulators have not “declared Bitcoin as a commodity”.I assume that you are refering to the recent CFTC ruling, It is venue specific, and has no effect on individuals and businesses.Last year, the IRS issued guidance also treats Bitcoin as a commodity. That guidance applies only to tax treatment of Bitcoin sales—and only at the national level.Regarding the CFTC ruling, we agree with Dan Roseman’s explanation, above. But, the IRS guidance is perhaps more interesting…While it is confusing to have different definitions and treatments of a new instrument, based both on venue and at different levels of government, most pundits (including proponents, like me) consider this clarification helpful. It is neither for or against Bitcoin, but it simplifies year-end accounting.In other ways, however, Bitcoin is indisputably a cash instrument, and to many early proponents, it has the potential to become a full fledged “foreign currency”.For more information—at least from our perspective at the Cryptocurrency Standards Association, refer to: What gives Bitcoin Value? I wrote this piece and tried hard to clarify the future prospects for a transformative new mechanism that will become simpler, safer and easier to integrate in the coming years.Ellery Davies is a frequent contributor to Quora.He is also Co-chair at Cryptocurrency StandardsAssociation and chief editor at A Wild Duck.
Where is the Bitcoin central server located?
There is no central server for Bitcoin. It is a decentralized digital currency working on peer-to-peer (P2P) networks between transacting users.
Is earning money through Bitcoin illegal in India?
Is it LEGAL OR ILLEGAL?Firstly, Please understand that the the cryptocurrencies are neither declared as illegal nor accepted as legal tenders by RBI. Secondly, clarification has been given by RBI that it has not given any authorization or license to any entities to operate or deal with Bitcoins or any virtual or digital currency. Along with that, RBI keeps creating alertness among people regarding the risks associated with cryptocurrencies.The statement made by the finance minister of India was, ‘Our technical people are doing research on this topic in depth. I didn’t say, “Bitcoin” is illegal, I said, it won’t have a LEGAL TENDER in India.’Click here to read the full article for FREE!Source: Bitcoin illegal in India? Techcryptoguru