Bitcoin is a digital currency. Bitcoin is also an idea. The idea is that money should not be controlled by banks or governments, but rather by everyone who uses it.
Bitcoin was invented in 2009 by an individual known as Satoshi Nakamoto. Since no one knows who he is, and without his help the idea would still be a pipe dream, I will be making all of my references to him “Satoshi.”
The basic idea behind bitcoin is that people can transfer money from person to person without going through a bank (or through some other middlemen, such as PayPal). Credit cards are a good example: you go to Amazon and buy something, but instead of handing over money to the seller, you go to Visa or MasterCard and pay them for the privilege of using their card-issuer’s money to buy your own stuff. It’s credit-card companies’ way of getting paid for their risk: if you don’t pay you can’t use their money. By contrast, with bitcoin it’s just up to the seller whether they want to accept bitcoins or dollars or gold bars or whatever else they might want.
Bitcoin is a new kind of virtual money. In the future, it might be the sole global currency. It is also an electronic payment system that uses a peer-to-peer network to operate with no central authority, making it impossible for governments or banks to shut down. You can create your own bitcoin wallet and add money to it by sending bitcoins from another person’s wallet.
Within a Bitcoin network, you can send some bitcoins to someone else and they will give you some bitcoins back. That makes it possible to do business with people across the country or around the world without having to pay any fees to bank systems or government agencies.
A payment system that doesn’t need a third party makes possible all kinds of things that were previously thought impossible: creating digital twins of real-world objects and people; using smart contracts to automatically enforce agreements; doing all kinds of financial transactions without ever entering the real world.
Bitcoin is not the only cryptocurrency. Other currencies include Litecoin, Dogecoin, Peercoin, and Feathercoin, among others. If you want more information, you can find links in this blog post http://www.mikeoncrime.com/2013/03/bitcoin-or-bitcoin-like-currency-a-primer/
Bitcoin was first described in a paper called “Bitcoin: A Peer-to-Peer Electronic Cash System” in 2008. It’s been updated since then, but the basics have stayed the same.
In practice, bitcoins are not paper dollars. Bitcoins can be used anywhere that bitcoins are accepted. Most people use bitcoins to buy things on the internet. They are constantly fluctuating in value, but usually go up and down in a predictable way. They are currently worth about $9.5 million dollars each (or a little less than one cent each).
On their own, they are not valuable; they are just a very convenient way to move money around. For example, you can use them to pay for web hosting services or buy pizza from your favorite restaurant (but there’s no reason you should do these things with bitcoins unless you want to learn about them).
What is Bitcoin? Bitcoin is a form of electronic cash you can use to pay for things online. It’s based on a decentralized peer-to-peer computer network called the “blockchain,” the same kind of system that underlies digital currencies such as bitcoin and ethereum.
Bitcoin was invented in 2009 by an anonymous person or group of people going by the name Satoshi Nakamoto, and the concept was published in a paper written under that name. In the paper, Nakamoto describes bitcoin as “a purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”
Bitcoin is different from normal money because it does not exist in physical form, like dollars or euros. Bitcoins are mathematically generated and stored on your computer, but they are not printed by any government. Instead, bitcoins are created by computers solving complex problems using software that carries out the same function as our brains do when we make sense of numbers we see on computers.
The supply of bitcoins is limited—currently there are about 16 million bitcoins in circulation. That means every transaction has to be weighed carefully against the disappearing supply. The number of bitcoins released per block, which is set once every 10 minutes, halves every
Bitcoin is a new digital currency that’s based on an open-source software protocol. It’s not controlled by any central authority, so it’s impossible for third parties to shut down or manipulate the payments system.
In late 2008, Alan and his friend Nick Szabo created a digital token called “bit gold,” which they described in a white paper as “a commodity similar to gold but with all its properties replaced by software.” In 2009, they made the bit gold code available under an open-source license.
Three years later, Satoshi Nakamoto, the anonymous creator of Bitcoin, published an essay in which he proposed using electronic bits as the basis for a new kind of money. He called this new kind of money “bit coin.”
Bitcoin is a form of electronic cash. Like other forms of electronic cash – paypal, money orders, gift cards, etc. – bitcoins are not backed by any government or central bank and have no fixed value in terms of foreign currency. Bitcoins are created by a process called “mining”, which is essentially a competitive lottery.
The Bitcoin system is designed in such a way that it rewards those who contribute the most computing power to the network. This is known as “proof-of-work”, and one of the ways Bitcoin ensures security against counterfeit bitcoins is that you need to solve complex mathematical puzzles before you can make a transaction.
Bitcoin is an electronic cash system, created to give people more control over their money. It’s like conventional cash but with a few key differences: 1. instead of being printed by governments and banks, Bitcoin is created by lots of different people running computers all around the world. 2. Bitcoins aren’t tied to any bank or government. 3. Bitcoins are divisible into very small pieces, so you can easily move or trade them from your computer to someone else’s computer without ever needing to reach a bank or government in between. 4. You can use Bitcoins just like cash at any store that accepts them 5. Everyone in the Bitcoin network runs Bitcoin software, so if everyone else is using Bitcoin and you want to get a transaction confirmed, there’s no cost to you even if other people don’t have Bitcoin software yet.