- Bitcoin is a digital currency that is not supported by any country’s government or central bank.
- It can be traded for services or goods with sellers who accept bitcoins as payment.
- Bitcoin was first introduced in October 2008. It was invented by an unidentified programmer, or group of programmers, under the name of Satoshi Nakamoto.
- The system is peer-to-peer (person to person using bitcoins) and transactions take place between users directly, without an intermediary (like Bank).
- Bitcoin transactions are seen by the entire network within a few seconds which are verified by network nodes and are usually recorded into Bitcoin’s world wide ledger (record of transactions) called the blockchain, in the next block.
- Bitcoin isn’t owned by anyone. Anyone can use it, but there isn’t a single company that is in charge of it.
- So, Bitcoin payments are impossible to block, and bitcoin wallets can’t be frozen (unlike the currency we use that government can regulate).
- Unlike government issued money, that can be inflated at will (by increasing or decreasing the money supply), the supply of bitcoin is mathematically limited to twenty one million bitcoins, and that can never be changed.
- Bitcoins are impossible to counterfeit (as they are encrypted, hence also called Crypto-currency). Bitcoin’s price is determined by the laws of supply and demand.