From 955aaaf88ae27ea834f332f333ceb020f0ba8301 Mon Sep 17 00:00:00 2001 From: "Rune K. Svendsen" Date: Fri, 22 Mar 2013 02:12:45 +0100 Subject: [PATCH] Distinguish between "price" and "value" when explaining *price* volatility Similar to how we would not say cars are volatile if large price swings for cars happen often, we shouldn't say Bitcoin is volatile because its price is volatile. It's important to distinguish between the underlying technology that is Bitcoin, and the price of the tradable currency unit within this network. The currency units may fluctuate often and greatly in price, but the Bitcoin technology itself is not volatile because of this. Additionally, I've used the lowercase "bitcoin" when talking about the currency *unit* rather than the "Bitcoin" technology/network. --- en/you-need-to-know.html | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/en/you-need-to-know.html b/en/you-need-to-know.html index 5966edd9..541eb6c5 100644 --- a/en/you-need-to-know.html +++ b/en/you-need-to-know.html @@ -22,8 +22,8 @@ title: Some things you need to know - Bitcoin

An offline backup of a wallet provides the highest level of security for savings. It involves storing a wallet only on paper and on usb keys in different secured locations that are not connected to the network. This is a good protection against computer failures, computer vulnerabilities, theft and human mistakes. As of today, this approach still requires some technical knowledge to be done correctly.

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VolatileBitcoin value is volatile

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The value of Bitcoin can unpredictably increase or decrease over a short period of time due to its young economy, novel nature, and sometimes-illiquid markets. Consequently, keeping your savings in Bitcoin is not recommended. Bitcoin should be considered as a high risk asset and you should never store money that you cannot afford to lose with Bitcoin. If you receive payments with Bitcoin, many service providers allow you to convert them instantly to your local currency.

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VolatileBitcoin price is volatile

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The price of a bitcoin can unpredictably increase or decrease over a short period of time due to its young economy, novel nature, and sometimes illiquid markets. Consequently, keeping your savings in bitcoin is not recommended. Bitcoin should be considered as a high risk asset, and you should never store money that you cannot afford to lose with Bitcoin. If you receive payments with Bitcoin, many service providers allow you to convert them instantly to your local currency.

IrreversibleBitcoin payments are irreversible

Any transaction you issue with Bitcoin cannot be reversed. It can only be refunded by the person receiving the funds. That means you should take care to do business with people or organizations you know and trust. But don't worry, Bitcoin can detect typos and usually won't let you send money to an invalid address.