What Is Bitcoin?


What Is Bitcoin?

Bitcoin was created by Satoshi Nakamoto, a pseudonymous person or team who outlined the technology in a 2008 white paper. It’s an appealingly simple concept: bitcoin is digital money that allows for secure peer-to-peer transactions on the internet.

  • Contrary to PayPal and Venmo, which depend on traditional financial systems for permission to transfer money, and existing debit/credit cards, bitcoin is decentralized. Any two people can send bitcoin to one another anywhere in the world without the need to involve a bank, government or any other institution.
  • Each transaction involving Bitcoin can be tracked on the Blockchain. This is similar to a bank’s ledger or log of customers’ funds moving in and out of the bank. It’s simply a record of all bitcoin transactions.
  • The Bitcoin blockchain is distributed throughout the entire network, unlike a bank’s ledger. It is not controlled by any country or company. Anyone can join that network.
  • 21 million bitcoin will never be enough. This digital currency cannot be inflated or manipulated.
  • You don’t have to buy the entire bitcoin. If you only need a small amount, you can purchase a fraction.

Key Question

What's BTC?

BTC stands for bitcoin.

What is Bitcoin cryptocurrency?

Bitcoin is the first cryptocurrency widely used. This is another way to say digital money.

What is a simple definition of bitcoin?

Bitcoin is digital currency that allows peer-to-peer transactions over the internet.

Is Bitcoin a good investment?

You can either make money buying BTC at a low price and then selling it high or you could lose money doing the opposite.

When did Bitcoin begin?

In early 2010, one BTC was worth a fraction of an American penny. Its value surpassed a dollar in the first quarter 2011. Its value soared to close to $20,000. In the second quarter of 2017, it was worth more than a dollar.

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