Bitcoin
| Bitcoin is a cryptocurrency, a form of electronic cash. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009. 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 also be held as an investment. According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin. Bitcoin is a cryptocurrency, a form of electronic cash which is decentralized and not managed by any central bank or single administrator. Bitcoin is the first cryptocurrency to have ever been created, and it is also the most well-known cryptocurrency in the world. Bitcoin was created in 2009 by an unknown person or group of people under the pseudonym Satoshi Nakamoto. Bitcoins are created as a reward for a process known as mining. Mining is when computers solve complex mathematical problems in order to verify Bitcoin transactions. When a Bitcoin transaction is made, the transaction is broadcast to the entire Bitcoin network. Bitcoin miners then race to verify the transaction. The first miner to verify the transaction is rewarded with newly created Bitcoins. Bitcoins 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 also be held as an investment. According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin. Bitcoin has a number of advantages over traditional fiat currencies. Bitcoin is global, so it can be used by anyone in any country. Bitcoin is also borderless, so it can be sent to anyone in the world instantly. Bitcoin is also censorship-resistant, so it cannot be shut down by any government or financial institution. Bitcoin also has a number of disadvantages. Bitcoin is volatile, so its price can go up or down a lot in a short period of time. Bitcoin is also not widely accepted as a form of payment, so it can be difficult to find places to spend it. Bitcoin is also not regulated, so there is no protection if you lose your Bitcoins or if a Bitcoin company goes bankrupt. |
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