Any system can be judged as fraud or legit, if it can pass a test of questions, the questions prepared keeping in mind the interests of the people or organization or nature, who will be using or are affected by the system. So, is Bitcoins Legit? Or better put, is the Bitcoins system legit?

A legit system has an owner, an individual or a legal entity, who or which can be taken to court if a party who is using the system feels he has been cheated/betrayed by the system. So, a legal framework should exist for the system, for all this to happen. The Govts. world over are not yet willing to create a framework of legal procedures for Cryptocurrency.

Bitcoin System.

Bitcoin is a Cryptocurrency, which means it is encrypted for verifying purposes.

It is a digital currency which can be used only for online payments.

Now, let us see, how the Bitcoin System stands up to a test of questions.

Is it legal?

No. Simply because no government will help you if Bitcoin gets into trouble. Which simply means, there is no one to protect users interests. There is no law to protect you if you get into difficulty with individuals or organizations when transacting in Bitcoins. Suppose, a supermarket is giving you Bitcoins instead of points, and eventually you are not able to redeem the Bitcoins – nobody is there to support you.

What can I buy with Bitcoins?

Practically nothing.

Can I do some work to do earn Bitcoins

No. Nobody in the regular businesses we come across, will pay you in Bitcoins for your work. However, there are people claiming they get paid in Bitcoins.

What do I do after invest in Bitcoin rig?

Invest in the software, to connect to Bitcoin network and run programs and mine the data.

What are ASIC Bitcoin miners?

Special computers based on the Application Specific Integrated Circuits. These systems are optimized for mining Bitcoins.

Is electricity cost high for Bitcoin computers?

Yes, because the power of the Bitcoin computers is high.

What is a Bitcoin rig?

It is a computer assembled in haste to mine Bitcoins. So, it is called a rig.

Is Bitcoin similar to Amway and Ponzi scheme?

In a way, yes. The lure of do once, and get paid eternally. Like real estate.

Which are the software I should download?

You should download two software, Bitcoin client and mining software.

Is it free or comes with a Cost?

You have to pay nominal charge for consultation.

Can I use Bitcoin computer to install word processor for other computing purposes?

Yes. With a little bit of further investment you can use word processor and excel to keep track of your Bitcoin expenses and returns. J

Do Bitcoin consultants visit premises and setup Bitcoin systems?

Yes.

When will I start seeing return on my Bitcoin investment?

Nobody can tell that. You will get a Bitcoin when your rig is able to locate an empty block in the Blockchain software.

What is a Bitcoin mining pool?

A mining pool is a network of Bitcoin computer networks.

What should one do to earn Bitcoins?

Set up a high power computer system, connect to the Bitcoin network, use software to search for empty blocks in Blockchain database and participate in verifying transactions. This is called mining. The picture shows the relationship between the miner, the database and other relevant details.

Will this be a long term opportunity?

No one can say yes or no.

Who are joining Bitcoin mania?

A number of people, individuals, supermarkets, Bitcoin exchanges, etc.

How do you cash Bitcoins?

You have to sell it to a buyer in an exchange at the prevailing rate.

What happens after we install Bitcoin software?

We join the Bitcoin network and learn how to locate a block in the public ledger and get to work.

How to buy Bitcoins?

Very simple. Install ‘Bitcoin wallet’ in your mobile, wallet is free. Using pay Paypal or using your credit card you can pay in an exchange. You pay hard cash to get digital cash. A word of caution - once you buy you cannot return it.

Who determines how much and when Bitcoin owners are paid?

It is self running, is the public opinion. It obviously is run by some unknown person and a community with no name. It is like a man with no name.

What is the present state of Bitcoin business?

Most people are now trying to get small amounts of Bitcoin credits by using coupons, shopping at select malls, etc.

I there a Bitcoin original website where I can get the full picture?

Yes, it is here. BITCOIN

Ironically, on the website, you are requested for a donation in hard cash, not in Bitcoins.

Is there a physical address of Bitcoin office?

No. There is no physical address. As expected, the website says it is community promoted. We also do not know who are the community members.

How do I know how much I can spend from my wallet?

Your wallet will calculate your spendable balance for you.

Does the wallet contain Bitcoins?

No. The wallets have a value.

What is a Bitcoin Transaction?

A transaction is a transfer of value between wallets.

What is Mining?

Mining is the process of confirming a list of pending transactions in the block chain. After confirmation, these transactions are included in the block chain.

How do you earn Bitcoins?

You can earn Bitcoins by confirming transactions and pack them in a block that follows very strict cryptographic rules.

In the process, you locate empty blocks in the Blockchain database which is a software holding Bitcoin transactions.

You use your computers and the downloaded software to mine the data, and earn Bitcoins.

Where is Bitcoin heavily used?

In online games, and game parlors. You can play games, and earn Bitcoins and buy Bitcoins to rise up the levels. You will know this if you have played computer games.

Microsoft has announced you can buy Xbox using Bitcoins. See the connection? You play computer or online games, earn Bitcoins and spend them to buy new game units like Xbox.

So, how will a world with only Bitcoins look like?

At the top level you have the community which maintains the Blockchain software, ensure that it is running and algorithms are updated as things keep developing and improving.

Below this level you have Bitcoin miners who mine the blockchain public ledger and become a part of the community with their own computer rigs. Based on a lottery system miners get Bitcoins.

Bitcoin miners, go out of their offices and homes to spend these Bitcoins to buy stuff for their lives. So, the earning members of every family bring Bitcoins to their homes and spends them.

Each miner helps to validate these Bitcoin transactions.

Each one of us will have a wallet and spend our Bitcoins using the wallet.

Is there a court for Bitcoin fraud?

No. In fact, the Bitcoin website does not even have a Google verified address on its website or contact number, whereas a relatively small firm like ours has a google verified address, paypal verified payment option, and a telephone number available 24 hrs, and a open whois record.