By Kate Cox March 4, 2014 (Great Beyond ) The world of finance and economics is pretty complicated as-is, and now there’s “digital money” in the mix making it even worse. Bitcoin is everywhere in the news lately, from hacks to hearings and everything in between. But there are a lot of questions about Bitcoin — starting with, what the heck is all this, anyway? And so, here is everything you wanted to know about Bitcoin, but didn’t actually want to ask your tech-loving, early-adopter friend. What is Bitcoin? Bitcoin is the world’s biggest cryptocurrency. It was introduced in 2009, and is the longest-standing, best-known, and most widely-traded cryptocurrency.
Generally, Bitcoin with a capital B means the software and the system; bitcoin with a lowercase b means the actual money.
A what? A cryptocurrency is digital money. It’s a virtual medium of exchange, not issued by, backed by, or tied to any particular nation or government. It’s the biggest but there are others? Yup. The software— Top nav — News – Companies – – Exchanges – – Merchants – – Wallets – – Investors – – Funding – Technology – – Mining – – Bitcoin Protocol – – Bitcoin ATMs – – Altcoins – – Cryptocurrency 2.0 – Regulation – Events – BitLicense – Prices – Crime – – Silk Road – Features – – Opinion – – Data Analysis – – Reviews Price & Data – Bitcoin Price Index – Bitcoin Venture Capital – Bitcoin Network Statistics – Bitcoin Calculator – About the BPI – Bitcoin ATM Map – CoinDesk API – Bitcoin Price Ticker Widget Guides – What is Bitcoin? – Why Use Bitcoin? – How Can I Buy Bitcoins? – How to Buy Bitcoin in the UK – How to Store Your Bitcoins – What Can You Buy with Bitcoin? – How to Sell Bitcoin – How to Accept Bitcoin Payments – How do Bitcoin Transactions Work? – Is Bitcoin Legal? – Who is Satoshi Nakamoto? – How Bitcoin Mining Works – How to Set Up a Bitcoin Miner – What are Bitcoin Mining Pools? – How Does Cloud Mining Work? – Calculate Mining Profitability – How to Make a Paper Bitcoin WalletBitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give your real name. More merchants are beginning to accept them: You can buy webhosting services, pizza or even manicures. Why Bitcoins? Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation.
Small businesses may like them because there are no credit card fees.
Some people just buy bitcoins as an investment, hoping that they’ll go up in value. Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured by theMembers of Congress today will get a crash course on bitcoin, the digital currency that allows users to conduct transactions online. In just five years the virtual currency has gone from being worth pennies to nearly $600 apiece. It has funded nascent democracy movements as well as a huge underground marketplace for illegal drugs and weapons. We set out to answer the question: What Are Bitcoins? Below is an attempt to answer that and many other questions surrounding the virtual currency.
And we promise to speak really, really slowly. When I was 4, I bit a coin, swallowed it, and had to go to the emergency room. I ve had a fear of payphones and gumball machines ever since. Thank goodness Congress has finally gotten around to fixing the scourge of people biting coins. Wait. is this the same thing? You never have to worry about choking on a bitcoin. Unlike U.S. quarters, Canadian loonies, or, for that matter, the currencies of every country in the world, bitcoins are completely virtual.Bitcoin[note 5] is a payment system invented by Satoshi Nakamoto,[note 6] who published the invention in 2008 and released it as open-source software in 2009. The system is peer-to-peer; users can transact directly without needing an intermediary.:4 Transactions are verified by network nodes and recorded in a public distributed ledger called the block chain. The ledger uses its own unit of account, also called bitcoin.[note 7] The system works without a central repository or single administrator, which has led the US Treasury to categorize it as a decentralized virtual currency. Bitcoin is often called the first cryptocurrency, although prior systems existed.[note 8] Bitcoin is more correctly described as the first decentralized digital currency. It is the largest of its kind in terms of total market value. Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into the public ledger. This activity is calledWith the Bitcoin price so volatile everyone is curious. Bitcoin is extremely complicated and no one definition fully encapsulates it. By analogy it is like being able to send a gold coin via email. It is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. Bitcoin was the first practical implementation and is currently the most prominent triple entry bookkeeping system in existence. Who created Bitcoin? The first Bitcoin specification and proof of concept was published in 2009 by an unknown individual under the pseudonym Satoshi Nakamoto who revealed little about himself and left the project in late 2010. The Bitcoin community has since grown exponentially.
Satoshi s anonymity often raises unjustified concerns because of a misunderstanding of the open-source nature of Bitcoin. Everyone has access to all of the source code allBitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks ! General What is Bitcoin? Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer . What can you buy with bitcoins? You can use bitcoin in many stores, both online and offline. Read our guide to find out where to spend yourWhat is Bitcoin? Who created Bitcoin? Who controls the Bitcoin network? How does Bitcoin work? Is Bitcoin really used by people? How does one acquire bitcoins? How difficult is it to make a Bitcoin payment? What are the advantages of Bitcoin? What are the disadvantages of Bitcoin? Why do people trust Bitcoin? Can I make money with Bitcoin? Is Bitcoin fully virtual and immaterial? Is Bitcoin anonymous? What happens when bitcoins are lost? Can Bitcoin scale to become a major payment network? Is Bitcoin legal? Is Bitcoin useful for illegal activities? Can Bitcoin be regulated? What about Bitcoin and taxes? What about Bitcoin and consumer protection? How are bitcoins created? Why do bitcoins have value? What determines bitcoin’s price? Can bitcoins become worthless? Is Bitcoin a bubble? Is Bitcoin a Ponzi scheme? Doesn t Bitcoin unfairly benefit early adopters? Won t the finite amount of bitcoins be a limitation? Won t Bitcoin fall in a deflationary spiral? Isn t speculation and volatility.