Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain.
Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.
As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
Bitcoin can be used to pay for things electronically, if both parties are willing. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.
However, bitcoin differs from fiat currencies in several important ways:
The decentralized nature of the Bitcoin network allows users to be in full control of their own money. There is no central authority that can freeze or seize bitcoins. This makes Bitcoin attractive to criminals and terrorists, who may use it for black market activities or money laundering. However, it also has legitimate uses in the legal economy.
2) Limited supply
There will only ever be 21 million bitcoins created. This makes Bitcoin similar to gold or other precious metals, which have limited supplies and therefore maintain their value over time due to scarcity. However, unlike gold or other commodities, there is no easy way to determine the current price or value of a bitcoin. This makes pricing and valuation difficult for investors and potential users.
The price of a bitcoin can fluctuate wildly from day to day (and even hour to hour). This makes it difficult to use as a currency, since its value is constantly changing. This volatility also makes it risky for investors looking to buy bitcoins as an asset or commodity.
4) No chargebacks
Once you’ve sent someone bitcoins, they’re gone forever. There’s no way to get them back (unless the recipient is willing to send them back). This makes Bitcoin attractive for criminals and terrorists looking to move money anonymously but also makes it risky for buyers who may not receive what they paid for (or may not receive anything at all).
So can you send bitcoin from Coinbase? Yes, you can!.