What is bitcoin & how does it work?

Unlike fiat currency, Bitcoin is created, distributed, traded, and stored using a decentralized ledger system known as a blockchain. Bitcoin and its ledger are secured by proof-of-work (PoW) consensus, which is also the "mining" process that introduces new bitcoins into the system. Bitcoin can be purchased via various cryptocurrency exchanges.

Where did bitcoin come from?

You may be asking, “Where did Bitcoin come from and how are its rules decided?" The Bitcoin protocol is open-source software that was originally created by Bitcoin’s pseudonymous founder, Satoshi Nakamoto. Anyone in the world can run the software, and thousands of people have contributed to its development since launching in 2009.

What makes Bitcoin different?

Bitcoin spans many traditional assets, such as cash and gold. For example, you can use it like money or as a store of value. Another key to what makes Bitcoin different is its decentralized and “trustless" model. This means that trusted third parties (middlemen such as banks) aren’t necessary with Bitcoin.

What is Bitcoin (BTC)?

Sponsored by What's this? What Is Bitcoin? Bitcoin (BTC) is a cryptocurrency, a virtual currency designed to act as money and a form of payment outside the control of any one person, group, or entity, thus removing the need for third-party involvement in financial transactions.