By JOHN MCDONALD, Associated Press The cryptocurrency bitcoin has fallen in value, hitting a low of $1,270 a coin in late July.
But that has not stopped some investors from betting on it gaining traction as a store of value.
Here are the key questions to consider when buying bitcoin.1.
Will it last?
Will it be able to last long enough to make a significant dent in the financial system?
The cryptocurrency is one of the most volatile commodities in the world.
A major collapse in the value of bitcoin could cause havoc for banks and governments that hold the digital currency.2.
What is bitcoin?
Bitcoin is an online payment system that lets anyone send or receive money.
It is used for buying and selling goods and services.
Bitcoins can be bought and sold with fiat currency.
Bitcoin can also be used to buy goods and merchandise with credit cards, but credit card payments are not required.3.
Will Bitcoin be able do what other currencies have failed to do?
Many of the bitcoin exchanges are still operating.
Some of the biggest are Gemini and Poloniex.
But those two exchanges have been hacked and are now unable to process transactions.4.
Will there be a shortage of bitcoins?
Bitcoin will likely need to be more popular to gain traction.
It could help a currency survive an economic downturn or help it gain currency.
It also could be used by criminals to fund illegal activities.5.
Will bitcoin be used for illegal activities?
If a large number of people decide to invest in bitcoins, it could be difficult to regulate how they do so.
In that case, there could be potential for money laundering.
There is also a risk of the money being used to launder illegal activity.6.
What happens if bitcoins get banned?
There are several options for businesses that are using bitcoin to conduct business.
These include banks, companies that accept payments in bitcoins or payment processors that use bitcoins.
Some governments have already banned the use of bitcoin.7.
Will the government ban bitcoins?
The US Federal Reserve, which is part of the Federal Reserve System, announced on June 25 that it would allow the use in banking transactions of bitcoins.
It said it will use the same rules for payments in dollars and for payments involving credit cards.
But bitcoin transactions in the US are not regulated by the Fed.8.
Will bitcoins become more expensive?
A currency’s value is determined by its supply and demand.
A price rise or a decrease in the supply or demand for the currency would mean that a currency is more expensive than it was a few years ago.9.
How much does bitcoin cost?
Bitcoin transactions usually take about an hour to process.
It costs about $1.50 to buy $1 worth of bitcoin at one exchange and about $0.50 per bitcoin at another.10.
What if I can’t get into a bitcoin exchange?
If you want to buy bitcoin with cash or a credit card, you might be able get a cashier’s check, which will have a transaction fee attached.
If you want bitcoin from an exchange, you’ll need to use a bitcoin wallet to hold your bitcoins.11.
What do the exchanges do?
Bitcoin exchanges are regulated by different countries.
In some cases, bitcoin exchanges operate on separate premises.
If an exchange fails, the company will be fined and its assets seized.
Other exchanges have to adhere to a regulatory framework.12.
How can I trade bitcoins on my credit card?
You can trade bitcoins by using a credit cards credit card.
A debit card is generally accepted at many merchants.
However, credit cards can be used in transactions with bitcoin exchanges.13.
Can I buy bitcoin from a vending machine or online?
Vending machines and online services such as eBay, Amazon and others accept bitcoin.
They are available on many websites.14.
How big is bitcoin’s market cap?
Bitcoin’s market value is about $4.6 trillion, according to CoinDesk.
That is roughly three times the size of the US economy.15.
What about currency swaps?
Traders may be able buy and sell bitcoins at a discount if they can arrange for cash transfers to be made with a third party.
Some bitcoin exchanges allow buyers and sellers to swap their bitcoin for currencies.16.
Can people trade their bitcoin?
Trading bitcoin is a very different concept from other forms of financial transactions.
Trading is often done through an exchange or another financial institution.
Some exchange operators also accept bitcoin for their customers.17.
Can a business accept bitcoin?
Yes, companies can accept bitcoin as a payment method.
But a lot of businesses don’t accept it as payment for goods or services.18.
How long will bitcoins last?
Bitcoin lasts about three to five years.
If bitcoins are accepted as a medium of exchange in the future, it will likely be decades.19.
How will the US deal with bitcoin-related problems?
Bitcoin regulations are complicated.
But there is a clear framework in place.
For example, there is legislation that governs bitcoin exchanges, as