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 decentralized. This means that no single institution or person controls the network. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain.
Bitcoin is pseudo anonymous. This means that while all transactions are public, the identity of the parties involved are not.
What are the benefits of Bitcoin?
Bitcoin has several benefits over traditional currency.
Bitcoin is global. Bitcoin can be used by anyone, anywhere in the world.
Bitcoin is fast. Transactions are verified and recorded quickly.
Bitcoin is cheap. Transactions are typically very cheap.
Bitcoin is secure. Bitcoin transactions are secure and irreversible.
What are the risks of Bitcoin?
Bitcoin has several risks over traditional currency.
Bitcoin is volatile. The value of Bitcoin can fluctuate greatly.
Bitcoin is untested. Bitcoin is a relatively new technology and has not been tested in a large scale setting.
Bitcoin is unregulated. Bitcoin is not currently regulated by any government.
What are the opportunities with Bitcoin?
Bitcoin has several opportunities over traditional currency.
Bitcoin is global. Bitcoin can be used by anyone, anywhere in the world.
Bitcoin is fast. Transactions are verified and recorded quickly.
Bitcoin is cheap. Transactions are typically very cheap.
Bitcoin is secure. Bitcoin transactions are secure and irreversible.
What is Bitcoin mining?
Bitcoin mining is the process by which new Bitcoin are created. Miners are rewarded with Bitcoin for verifying and recording transactions in the blockchain.
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