Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
Bitcoin is unique in that there are a finite number of them: 21 million.
NOTE: WARNING: Understanding how Bitcoin got its value is complex and involves a variety of factors. Before engaging in any financial transaction involving Bitcoin, it is important to understand the risks associated with investing in cryptocurrencies. Additionally, there is no guarantee that the value of Bitcoin will remain stable or increase over time. Investing in Bitcoin is not suitable for everyone, and you should always assess your own risk tolerance before investing.
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.
5 Related Question Answers Found
Bitcoin is often lauded as an innovative breakthrough in the digital age, and for good reason. The cryptocurrency is decentralized, global, open-source, and borderless. But what exactly is Bitcoin, and why does it have any value?
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
When it comes to digital currencies, there is no denying that Bitcoin is the king. The original cryptocurrency has been around for over a decade now and it continues to dominate the market. But how does a Bitcoin make money?
When it comes to Bitcoin, there are a lot of different opinions out there. Some people view it as a digital currency that has the potential to revolutionize the way we interact with money. Others view it as a speculative investment that could turn out to be a huge financial bubble.
Bitcoin is often described as digital gold. Like gold, bitcoin cannot be created out of thin air. Gold must be mined out of the ground, and bitcoin must be “mined” through computational power.
