What is Bitcoin?

Bitcoin is a digital or virtual currency created in 2009. It is a payment system based on mathematical proof and is not subject to government control. 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 only 21 million of them, over 14 million which are currently circulating as of early 2017. Bitcoin can be used to purchase goods or services online, but it has never been more than an experiment so far with very few vendors accepting bitcoin for transactions due to the volatility of its value relative to traditional currencies like the US dollar or Euro.

Bitcoin was first introduced on October 31st 2008 by Satoshi Nakamoto who published his invention at 12:00 am GMT on SourceForge. The identity of Satoshi Nakamoto has never been established with much disagreement over the subject, most likely he is a pseudonym which is why his real identity remains unknown.

The system itself operates using complex mathematical algorithms and cryptographic hashes amongst others which are used to verify transactions on the blockchain distributed ledger. Bitcoin can be mined by solving these problems with computing power either alone or in groups known as pools for an individual bitcoin reward. This process requires large amounts of electricity with China being the leader in mining operations due its cheap energy costs compared to most other countries around the world.

Bitcoin is a digital or virtual currency created in 2009

Bitcoin is a digital or virtual currency that was created in 2009. It is a payment system based on mathematical proof and is not subject to government control. 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 only 21 million of them, over 14 million which are currently circulating as of early 2017. Bitcoin can be used to purchase goods or services online, but it has never been more than an experiment so far with very few vendors accepting bitcoin for transactions due to the volatility of its value relative to traditional currencies like the US dollar or Euro.

Transactions are verified by network nodes through cryptography and recorded on the blockchain

Bitcoin transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. This process ensures that the data is accurate and that no double spending can occur. The use of cryptography also protects the privacy of the participants in a transaction.

Bitcoins can be mined by solving mathematical problems with computing power either alone or in groups known as pools for an individual bitcoin reward

Miners are rewarded with bitcoins for verifying and committing transactions to the blockchain. This process is known as bitcoin mining. Miners can verify and commit transactions by themselves, or they can join a mining pool. Pools are collections of miners who work together to verify and commit transactions to the blockchain. When a miner solves a problem, they are rewarded with bitcoins for their work.

Bitcoin is a digital or virtual currency that was created in 2009. It is a payment system based on mathematical proof and is not subject to government control. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called the blockchain. Bitcoin can be used to purchase goods or services online, but it has never been more than an experiment so far with very few vendors accepting bitcoin for transactions due to its volatility of value relative to traditional currencies like the US dollar or Euro. The use of cryptography also protects the privacy of participants in transaction while miners verify transactions on the blockchain distributed ledger; they are rewarded with bitcoins when solving problems related their work which requires large amounts of electricity depending on where you live (e.g., China).

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