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.
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..
Research produced by University of Cambridge estimates that in 2017, there were 2.9 to 5.
8 million unique users using a cryptocurrency wallet, most of them using bitcoin..
The question of whether or not bitcoin is backed by assets has been a controversial one since the cryptocurrency was first created. On one side, there are those who believe that bitcoin is backed by nothing more than faith and trust in the system; on the other side, there are those who believe that bitcoin does have asset backing in the form of the computing power used to create and maintain the blockchain ledger.
There is no definitive answer to this question, and it remains to be seen which side is correct in the long run.