Is bitcoin a credit card?

Bitcoin transactions operate more like cash: exchanged person-to-person without a financial intermediary. Credit card companies are widely accepted, but there are many parties between merchants and customers that charge fees for "necessary" services. Credit card providers generally offer fraud protection, while Bitcoin does not.

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.

What is bitcoin based on?

Bitcoin is based on the ideas laid out in a 2008 whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System. The paper detailed methods for "allowing any two willing parties to transact directly with each other without the need for a trusted third party."

How do bitcoin payments work?

Bitcoins are stored in a digital wallet that you hold and control. You do not need to depend on a financial institution to hold your money for you. Payments are similar to wire transfers or cash transactions, where payment is "pushed" directly from one party to another without going through another financial institution.