FAQs

General

Bitcoin is peer-to-peer electronic cash (digital money). This digital money can be sent directly from one person to another without using a centralised financial institution like a commercial bank or central bank. Instead, the users of the bitcoin network support and enable the technology that makes the transfer of digital money possible.

Bitcoin SV describes the cryptocurrency originally invented in 2009 by its creator, Satoshi Nakamoto. Since bitcoin was created as an open source project from the beginning, any software developer could make changes to the way it worked. Some developers decided to create new cryptocurrencies that were similar to Bitcoin Core (BTC) but with new or different features. Examples of these new cryptocurrencies created are Ethereum (ETH), Litecoin (LTC), Zcash (ZEC) and Ripple (XRP). The result was that the cryptocurrency now listed on the world’s cryptocurrency exchanges as BTC (“Bitcoin Core”), is actually very different from what was originally designed. Bitcoin SV (BSV) is a cryptocurrency using the original design that was presented in Satoshi Nakamoto’s Bitcoin Whitepaper. Bitcoin SV exists to deliver digital money technology for the whole world that can process thousands of transactions per second. Bitcoin SV transactions happen almost instantly at almost zero fees, enabling micro and merchant payments. It is built and designed on a stable protocol which will never change, so that businesses will have the confidence to invest time and resources to the Bitcoin SV blockchain knowing that what they build now will remain relevant, useful and functional now and at any point in the future.

Think of a bitcoin address like a bank account number – it’s a string of characters like this:

1DRR4opijDdYcAEXFLj3eygv3Cn7nCMzJM

and is the address you send money from and to. It is sometimes called your ‘Public Key’ because it’s visible by anyone and may be shared. It is also possible to have many addresses linked to the same wallet – a bit like an ‘alias’ for email addresses.

Every bitcoin address also has a ‘Private Key’. This is like a password (made up of a 12-word phrase and a PIN number) that must be kept secret and safe and is used by your wallet software to authorize transactions.

There are differences between Bitcoin Core (BTC), Bitcoin Cash (BCH) and Bitcoin SV (BSV) bitcoin addresses. This means that if you send Bitcoin SV (BSV) to a Bitcoin Core (BTC) address it won’t ever arrive. A mistake like this is like sending money to the wrong bank account, only no-one can access that bank account for you and get your money back.

Only send Bitcoin SV to a Bitcoin SV address. The easiest way to make sure you don’t make a mistake is to ask the other person to download a Centbee (or any other Bitcoin SV) wallet, and send Bitcoin SV from your Centbee wallet to their address.  Bitcoin SV (BSV) that is sent to a Bitcoin Core (BTC) or Bitcoin Cash (BCH) bitcoin address will be lost permanently.

A ‘wallet’ is software (either on your desktop or a mobile phone app) that enables you to easily view and manage your cryptocurrency. This software manages your public and private keys to authorise transactions. The wallet software connects to ‘nodes’ to read and publish transactions to the relevant cryptocurrency blockchain.

You should treat bitcoin as you would any other financial investment and spend some time doing your own research before you decide whether you’re going to buy any kind of cryptocurrency. Centbee is not a registered financial services provider and nothing we say should be taken as financial advice. Bitcoin SV (BSV) and the cryptocurrency market is still new which makes it a high risk asset class. Prices of all cryptocurrencies are very volatile (go up and down drastically) and unpredictable. Only put in money that you can afford to lose. 

The following websites provide regular updates on news in the blockchain and cryptocurrency world:

The laws on cryptocurrencies are different all over the world. A very few countries have banned it, some countries have embraced it, and many regulators are somewhere in between.

In South Africa, cryptocurrencies including Bitcoin SV are not illegal. You are allowed to buy Bitcoin SV, pay for goods and services in Bitcoin SV, and store Bitcoin SV. Centbee (based in South Africa) works closely with local regulators in South Africa to ensure that we proactively comply with laws and regulations so that we can deliver an excellent, trusted service to our customers.

Yes, profits made on cryptocurrency must be declared to your local tax authority. In South Africa, SARS will tax your profits or losses at either the normal tax rate or the Capital Gains Tax rate (CGT), depending on whether the income generated was due to:

  1. trading activities (intention to make a short term profit), or
  2. profits made on the sale of cryptocurrency which was bought with the intention to keep for long term capital appreciation (CGT).