What is Bitcoin?
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.
How does Bitcoin work?
Bitcoin is often referred to as a new kind of currency. But it may be better to think of its units the bitcoin as commodities, like gold bars or oil futures. To buy or sell bitcoin you need an exchange: A platform that connects buyers with sellers. When you buy bitcoin you’re essentially buying units of the digital commodity on an exchange, just like you would when you buy gold bars or oil futures.
However, there are significant differences between investing in bitcoin and investing in other commodities. One key difference is that bitcoin is digital; it doesn’t have a physical form like gold bars or oil futures do.

This means there’s no need for central banks or other financial institutions to back or oversee transactions; there are also no transaction fees. Instead, bitcoins are created digitally through a “mining” process that requires powerful computers to solve complex math problems; the rewards for solving these problems are bitcoins. This process can be very energy intensive and costly.
What’s the difference between Bitcoin and regular money?
Bitcoin isn’t regulated like regular money. That means it doesn’t have to follow government rules on things like how it’s produced or where it can be used. Bitcoin also isn’t backed by anything tangible; regular money is usually backed by things like gold or silver (this is called the gold standard). So if no one wants to use bitcoins, they won’t have any value; if lots of people want to use bitcoins, they’ll have more value. The anonymous nature of bitcoin transactions makes it difficult to track them back to real-world identities; this makes it attractive for criminals who want to move money around without being traced.
What’s the forecast for Bitcoin?
The future of Bitcoin is shrouded in speculation and debate. On one hand, supporters believe that the currency will continue to grow in popularity and utility, eventually becoming a staple in the global financial system. On the other hand, critics argue that Bitcoin is nothing more than a speculative bubble with no intrinsic value, destined to collapse under its own weight. Only time will tell which side is correct, but one thing is certain: Bitcoin has created a lot of buzz since its inception, and it shows no signs of slowing down anytime soon.