Speak with an experienced crypto and blockchain attorney

The first and obvious addition among cryptocurrency FAQs would turn the emphasis towards definition of cryptocurrencies. Cryptocurrency is basically a digital form of currency with the support of cryptographic security for conducting trusted transactions. The underlying technology which runs cryptocurrencies is blockchain, and it offers a ledger for documenting all transactions. 

As of now, you can find multiple cryptocurrencies in circulation, such as Bitcoin, Ether, and many new cryptocurrencies. The cryptocurrencies run as decentralized systems or networks without allowing complete control to a specific entity. Another important highlight of cryptocurrencies refers to the method for generating them. For example, miners could use their computing resources and electricity for mining cryptocurrency or stake their assets in a network for earning governance tokens. 

You could not find any list of cryptocurrency questions for beginners without the mention of blockchain. The first-ever cryptocurrency, Bitcoin, is the first successful implementation of blockchain in the real world. Blockchain technology is basically a transparent, publicly accessible, trustless, and secure ledger.   It helps in secure transfer of the ownership of units of value by leveraging proof of work consensus and public-key encryption methods. Blockchain leverages decentralized consensus for maintaining the network, thereby excluding intermediaries such as government, banks, or corporations from the process.   On top of it, the expansion of the blockchain network increases the level of decentralization, thereby strengthening security on blockchain. Interestingly, the capabilities of blockchain technology don’t focus on Bitcoin only and also extend to financial services, healthcare, and gaming. 

No, cryptocurrency is not inherently illegal. While it has been associated with some illegal activities, it is also regularly used for legal purposes. 

Blockchain technology is regulated in some jurisdictions. However, it is not directly regulated in a number of jurisdictions. Generally, its use may only be regulated if it falls under an existing regulatory regime, such as where the sale of a blockchain-based cryptocurrency constitutes a security.

Blockchain technology provides the infrastructure for cryptocurrency, as well as blockchain-based data systems.

In theory, a jurisdiction can shut down a blockchain. Because of the nature of blockchain technology, however, governments could face challenges prohibiting or shutting down particular blockchains. Because public blockchains are based upon widespread nodes accessing the blockchain's network, public blockchains present a particular regulatory challenge.

A: The government can, under some circumstances, seize Bitcoin holdings. Much like any other more traditional assets, governments can, under appropriate circumstances, seize such assets—e.g., where they are the fruits or instrumentalities of criminal acts. However, in the United States, Bitcoin is not inherently illegal. So long as the holder complies with the tax laws and any applicable regulatory regimes, there is no violation in merely holding Bitcoin.

The next important addition among best questions about crypto would draw attention towards the basic elements in working of cryptocurrencies. The primary foundation of Bitcoin and other notable cryptocurrencies is public key cryptography. According to the cryptographic system, two different types of keys, such as public key and private key in pairs, can support crypto transactions. The public keys are important for identification and should be publicly visible. On the other hand, the private keys help in authentication and encryption, thereby implying that they are secret in nature. 

The commonly asked cryptocurrency questions for beginners would also point towards the implication of control and ownership of cryptocurrencies. Blockchain does not allocate control to a single entity in the case of cryptocurrencies. However, the creators or developers of cryptocurrencies can set specific parameters such as rules for purchasing or selling cryptocurrency. 

On the other hand, users get the privilege of controlling or managing the day-to-day operations of cryptocurrencies in a distributed manner. In addition, the identity of owners is anonymous, and you could not find any solid regulatory framework for verifying ownership of cryptocurrencies. 

However, some countries are investing efforts in introducing some regulations in this area for countering illegal activities. The legal framework for cryptocurrencies could help governments in fighting off the concerns of terrorism financing and money laundering with cryptocurrencies. Furthermore, regulations could also strengthen control of governments over monetary policies with respect to cryptocurrencies.