Frecuent Asqued Questions

Bitcoin is a new form of money that's completely digital. It can be used by anyone, anywhere in the world. Unlike dollars, euros, pesos, or yen Bitcoin is a universal currency.

Unlike traditional forms of money, there are no physical bitcoins. No bills, no metal coins are printed or minted for Bitcoin: it’s 100% digital. Everything is done from phones, tablets and computers. This allows for fast and cheap transactions around the world and around the clock.

Incredibly, Bitcoin is not controlled by any person, company, or government. It’s run by the community of its users. Bitcoin users are located all around the world and use the internet to send and receive payments. But unlike traditional payments that pass through banks, bitcoin is sent directly from person to person, instead of from person to company to person. This is known as a peer-to-peer system (P2P). It means there is no central control.

Bitcoin was invented to solve problems that exist with the traditional banking system. 3000 years ago money, coins and paper bills started to replace the barter economy and created the foundation of our current economic system; Bitcoin brings the concept of money up date with the 21st century and will serve as the foundation of how our world will work in the future.

Let us explain you some of its benefits, values and principles:

Benefit 1 – Power back to the people

Traditional money is controlled by banks and governments, which makes it a “centralized” currency. Think about how the word “centralized” makes you feel? The ultimate question you have to ask yourself is about trust. If you trust the central authority will always act in your best interest, then maybe the way money works today is ok for you.

But if your trust is not unconditional, you are definitely not alone. And that is where Bitcoin can help.

Bitcoin is not controlled or regulated by any single entity like a bank, that is why we call it a “decentralized” currency.

Having no central authority in control makes sending and receiving money cheaper, faster, and easier. Most importantly your trust is not placed in one entity, because every single Bitcoin user in the planet (over 25 million people and counting) is part of a global system where each transaction can be validated by all of them. The consequence it that in Bitcoin it is impossible to hack, steal, bribe, devaluate, delete, scam, counterfeit, manipulate, control, fake or cheat… unless you can do that to the 25 million users of the system all at once!!

It may sound counterintuitive, trusting a centralized entity may sound safer than not having anyone controlling the system. But the reality is that by removing the need to trust big banks, you end up with a substantially much safer and reliable system, one that is orders of magnitude more equitable, fair, transparent, efficient, secure, resilient, agile and most importantly free of all the drawbacks that plage the way we currently use money.

By removing the middleman (the banks) from the equation, and giving back the power and control governments and central banks have over your money, Bitcoin puts you back in the driver seat to determine how, when and where your hard earned money will be used.

Benefit 2 – The end of Fake Money

Paper currencies, credit cards, and checks can be counterfeit. If you’ve ever been a victim of fraud, you know this well.

Counterfeit traditional money is very common. In the U.S. alone it is estimated that between $70 and $200 million in counterfeit bills are in circulation. That’s up to 1 out of every 4,000 real bills. Add to that the fact that credit card fraud was over US$ 28B worldwide in 2019 and it quickly becomes clear that the current system we use to handle money was not designed for an all digital world, a world in which bad actors can take advantage of the many loopholes of the existing system and profit from it.

Bitcoin goes to the root of the counterfeit problem by making impossible for criminals to create fake Bitcoins. The system as we said is absolutely bullet proof and since it is a 100% digital solution created for a 100% digital world does not have any of the loopholes current money has.

So forget about paying fraud protection fees ever again, Bitcoin does not need that!

Benefit 3 – Less is worth more

Traditional money is created by governments in unlimited quantities. They print more constantly, which decreases the value over time. At the core inflation is just the natural consequence of the governments printing more money; as with anything else when there is “plenty” of something the price of that something tends to go down and vice versa.

Think about apples… when they are is season we have lots of them, so the grocery store sells them at cheaper prices; but when they are off season you may still see imported apples at the market, but you can bet your bill will be higher at the checkout cashier.

Since government controls money (and banks operate in tune with government monetary policies) they have absolute control over how much money is on the system at any point in time. Actually we have entrusted governments around the world with the power to “print” more money when they feel it's necessary.

In other words a government can, at any time they so feel like it, turn on the money printing press and can literally flood the market with new money making each dollar less valuable… it is like if you could go into a grocery store during the apples off season and upon seeing the prices per pound at $4,60, you reach to your magic wand and create 1000 apples out of the blue and instantly the price would to US$ 2,07… good for the apple pie, but not so good for the apple grower in Chile.

So remember this: scarcity increases the value, while abundance lowers the value. Bitcoin’s is by design a scarce resource, perhaps more similar to gold; the reason why people value so much gold it’s because its supply is limited because there is so much gold on planet earth (although some people believe that at some point we will be able to mine asteroids and if we find gold in them the price of gold will tank).

But Bitcoin has none of the above problems, the system is designed to allow for a maximum of 21 million coins ever, there is no way around it; once all 21 million coins have been mined (more on that latter) there will be no more, no one can print additional Bitcoins, you will not find any Bitcoin floating in space and no bank or government can order to print more of them. This absolute and deterministic scarcity will inexorably increase Bitcoin value over time.

As a proof think about the following examples:

If you had purchased 1 Bitcoin on Aug 16th 2010 for US$ 0,06 that Bitcoin today (May 2, 2020) would be worth US$ 8,981.11… a wooping return of 14,968,517%

Let’s say you learned about Bitcoin latter in the game and you purchased your Bitcoin in Feb 5th 2015 for US$ 216,32… your return today would be 4,152%

Or maybe you bought your Bitcoin on March 23rd 2019 for US$ 4,007,21… your return would be 224%

These are OFF CHARTS return by any standard, there is no other investment you could have made that even goes anywhere close to the value appreciation of Bitcoin; and guess what… this trend will accelerate as Bitcoin get more and more scarce day by day and eventually we will run out of them.

Benefit 4 – Infinitesimally Divisible

Old fashioned money can be spent only in amounts as small as a single cent, it is very unpractical to charge US$ 2,08292021 for a can of soda, or collect US$ 10.28006018 for a movie theater ticket.

Bitcoin can be spent in much smaller amounts, we call them Satoshis. One Satoshi equals 0,00000001 Bitcoin, in other words one hundred million Satoshis equal 1 Bitcoin. This means we can use Bitcoin even for tiny purchases.

As we already explained, Bitcoin value grows exponentially as it becomes more and more scarce. The good thing about the infinitesimal divisibility of Bitcoin is that an ice cream cone may cost 0.001 bitcoin today, but in the future, it may cost 0.00000010 Bitcoins..

A practical example where Bitcoin’s high divisibility is useful today is for microtransactions. These are very small payments used for digital goods and services. For example, imagine paying only a tiny amount of bitcoin for every page of an eBook you read, instead of paying for the whole book and discover mid book you really are not enjoying the plot.

Microtransactions are something traditional money can’t do, because cents are not divisible enough and therefore too big and cumbersome to be used for very small purchases.

Benefit 5 – Unbreakable Security

We all tend to fear when someone promises us absolute security. The plain truth is security in the digital world is never absolute. You will not hear many people admit this, but security technology is all about making it really hard for the bad guys to commit a cybercrime.

Surely you have heard of big hacks into major banks, retailers and even the government. Hackers exploit vulnerabilities of these systems to break in and gain control of valuable stuff (money, intellectual property, trade secrets, unreleased movies, etc). Breaking into some of these systems requires great time, effort and resources; some governments even devote very large resources and money to fund cyber armies; while others also spend greatly in fortifying and defending against these attacks.

Cracking Bitcoin security is actually the ultimate problem; it is so hard to break-in that no government, no hacker group, no private corporation or country can compromise it.

There are several reasons why Bitcoin security is so difficult to violate:

Bitcoin relies on hundreds of thousands of distributed nodes across the planet, each node keeps a copy of the transactions in the network; to fool the system you would need to first find all the nodes and simultaneously attack all of them…

…and you would need to time your attack very well, if the attack on one node happens out of sync (even by a few milliseconds) that attack will be rendered useless…

…you would also need a really vast amount of computing capacity, you would need to control around 2,5 million computers to initiate an attack to the Blockchain…

..and then you would need time, lots of time…about 200 years to be exact…

…you would also need to pay a very large electric bill because all these computers will use about 328,500 GW of energy, that is 10X the amount of energy the whole US uses in one year…

…and after all this effort you would only be able to extract one transaction, because in the next instant all the codes you figured out have changed….

…and if you try again the complexity of the next try doubles, meaning you will need to spend a couple hundred more years to get one more result...

So, pretty hard no?

Putting the complexity bar for hackers so high what actually makes Bitcoin practically unbreakable, it is not impossible, but it is so expensive and impractical to even try that hackers don’t even bother trying.

But wait a moment, you may have heard about hackers breaking into crypto currency exchanges and stealing the money; how can this be true if the above is also true?

The main thing to understand here is that as we already explained Bitcoin is absolutely safe, unless you openly share your keys; if you hand out your keys you loose all safety, if you keep your keys no one (no matter how hard they try) will ever gain control of your Bitcoin.

In the notorious hacks to crypto currency exchanges what happened was that poorly run companies asked customers give them their Bitcoin keys. When customer handed their keys to these “custodial entities” they also handed their TRUST to them… and we know what happens when you trust in a centralized entity.

When custodial entities were breached, hackers found a trove of Bitcoin keys they could use to access all the customers Bitcoin as if they were the owners of these assets, the did not need to break the impenetrable Bitcoin security to find the keys to the kingdom… the keys were waiting for them on the front door.

So yes, Bitcoin security is impenetrable and long as you keep your keys to yourself. If you hand out your Bitcoin keys to anyone, you are giving that person or entity total control and permission to do whatever they want with your Bitcoin.

Benefit 6 – Value preservation

Did we mention Bitcoin was the most valuable asset on the planet? Recall those outrageous returns we shared with you? Let’s compare to other potential investments:

Investment

10 year return

5 year return

1 year return

Bitcoin

14,968,517%

4,152%

224%

Gold

19%

32%

31%

S&P Index

193%

54%

16%

NASDAQ

454%

87%

17%

Apple stock

772%

151%

69%

You can pick any stock, any index, any market…nothing comes even close to Bitcoin’s appreciation.

Pundits say Bitcoin is very volatile, and it certainly its price has traditionally fluctuated much more than other type of currencies and assets such as Gold, real state and US stocks. But as time has passed this volatility difference has narrowed and during hard times such as the COVID-19 pandemic, Bitcoin has been LESS VOLATILE than Oil and has been very close to the variations in prices in the real estate market.

And even when Bitcoin volatility is high, its long term value preservation capabilities far exceed any other option; as a short term investment it may prove to be above average in terms of risk, but as a long term investment there is no better alternative today.

(https://charts.woobull.com/bitcoin-volatility-vs-other-assets/).

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With a custodial service, like that of exchanges, the user is not the real owner if his/her bitcoins. If the service is hacked, the hacker can steal the bitcoins. Or an authority could demand that a user bitcoins be confiscated. 

With a non-custodial service, like Bapp, the user is the sole owner of his/her bitcoins and no hacker or authority can do much about it.

The owner of a wallet is the one having the private kayes. The private keys, in modern wallets, are generated by the combination of a mnemonic (12-24 words chosen by an algorithm) and a password (called passphrase). In poorly designed wallets, only the menomic is used to generate the private keys so anyone with access to the words can steal the bitcoins.

Bapp doesn't hold the private keys of its users. When an user creates a wallet, the wallet mnemonic is encrypted (*), at the browser, using the wallet password as the key, and the resulting cyphered text is sent to the server where it's again encrypted on the server with an internal key.

When a text is encrypted the only way to decrypt it, obtaining the original text, is by brute force trying different keys and it can take maney years if the key is good enough. So an encrypted text is protected against prying eyes.

When an user wants to send bitcoins, the private keys are generated at the browser by the wallet mnemonic, decrypted with the wallet password, plus the wallet password. Once the bitcoins are sent the private keys are forgotten.

Important: in a non-custodfial service the user is responsible for keeping access to his/her bitcoins. In the case of a wallet if the mnemonic/password combination is lost then the bitcoins are lost.

* What's is encryption and why are texts encrypted? Encription is used to protect data. In this case we want to protect 24 words so nobody sees them. An encryption algorythm uses a user supplied key (it's like a password) to obfuscate the text you want to protect. After encryption the text, "word1 word2 ..." get transformed to "c2b164b0e02f6c087a748cd2ecd4aefe ...". Now all we have to do is keep the encrypted text (called cyphered) and the key. Whenever we want we reverse the encryption to get the original text back.

As secure as bitcoins in the Bitcoin blockchain. All Bapp services use Bitcoin Scripts so Bitcoin cryptography is protecting our users bitcoins. Bapp doesn't keep it's users private keys.

BAPP is a complex, yet effective platform that uses the Bitcoin & Blockchain technology combined with lots of creativity and user-friendly programming to make it possible to buy (coming soon), save, operate, pay, spend, leave to your heirs, create a trust (coming soon), build an escrow service and in general, almost every regular financial service adapted to the Bitcoin digital world, across the globe. This unrivalled technology enables BAPP to grant customers a secure and widespread use of the digital asset that matters, Bitcoin.
Not just individuals, also any group or organization can use BAPP’s platform as a group tool or a service creation deck.

Answer

Bitcoin is a blockchain-based cryptocurrency that shares some properties with its gold counterpart. Like gold, there is a limited amount of bitcoin, limited the total supply to 21 million tokens.

Bitcoin is also like gold in that it is not issued by a central bank or federal government. As a decentralized cryptocurrency, bitcoin is generated by the collective computing power of ¨miners¨, individuals and pools of people working to verify transactions which take place on the Bitcoin network and are then rewarded for their time, computing power, and effort with bitcoins. So, there is no-single individual or group controlling it. It cannot be “switched off” as the rest of cryptocurrencies.

Bitcoin is the hardest money in history. That is why at Bapp we only support Bitcoin.

Around Bitcoin a comple environment has developed. There are many companies with interesting apps but one needs to install many different ones in order to meet private or company needs. There are plenty of unreliable offers. Some solutions are good, but carry a hefty price tag. Definitely, not all financial solutions are created equal.

This is what we are going to change.

If you need get a little more technical, here we go.

BAPP is a Non-Custodial platform

  • Our design revolves around a non-custodial model
  • We believe our users ownership of their Bitcoins is sacred
  • Bapp users hold on to their own private keys
  • Not your keys, not your Bitcoin

BAPP is Ready to use
  • Powered by our intelligent scripting engine we NOW offer advanced use cases. More soon to come
  • We make Bitcoin user-friendly, once and for all./li>
  • Powerful but easy to use services
  • In contrast to other solutions in the market ALL the most common use cases are found in one single place 

Service creation Engine
  • Our internal intelligent scripting engine facilitates the creation of new use cases
  • BAPP seeks to empower the user with highly innovative business models built on top of Bitcoin.
  • BAPP is a true enabler of innovation in the Bitcoin space

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