A 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 purchased in person or online with a credit card, bank transfer, or other payment methods. The first exchange rate was published on October 5, 2009.
The legality of Bitcoin varies from country to country, but it is generally accepted as legal in Australia. There are no specific regulations regarding Bitcoin in Australia, but the Australian Taxation Office (ATO) has issued guidance on the taxation of digital currencies.