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 called the first cryptocurrency, although prior systems existed. Bitcoin is more correctly described as the first decentralized digital currency. Bitcoin works without a central bank or single administrator. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain.

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.

Who created Bitcoin?

Satoshi Nakamoto created Bitcoin, the first and still most important cryptocurrency.

What is a Bitcoin wallet?

A Bitcoin wallet is a software program where bitcoins are stored. To be technically accurate, Bitcoins are not stored anywhere; there is a private key (secret number) for every Bitcoin address that is saved in the Bitcoin wallet of the person who owns the balance. Bitcoin wallets are sort of like virtual bank accounts in that they allow you to send and receive bitcoins, pay for goods and services, or exchange bitcoins for other currencies.

How do I get Bitcoin?

You can get Bitcoin by accepting it as a payment for goods and services, or by buying it from a friend or an exchange.

No comments:

Post a Comment

Pages