Assets, Bitcoin

How Does Bitcoin Make Money?

Bitcoin is a cryptocurrency, a form of electronic cash. It 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: Bitcoin is a volatile market and you could risk losing your money if you invest in it. Investing in Bitcoin is a high-risk activity and should only be done with funds that you can afford to lose. Do your own research before investing, understand the risks involved, and never invest more than you can afford to lose.

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.

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