What is bitcoin and how does it work?

What is Bitcoin? Bitcoin is the first and most widely recognized cryptocurrency. It enables peer-to-peer exchange of value in the digital realm through the use of a decentralized protocol, cryptography, and a mechanism to achieve global consensus on the state of a periodically updated public transaction ledger called a 'blockchain.'

What is the difference between Bitcoin and cryptocurrency?

When you hear people talk about cryptocurrency or when cryptocurrency is on the news, it is likely about Bitcoin. For a lot of people, Bitcoin and cryptocurrency are the same, but Bitcoin is a cryptocurrency and there are a lot more other digital coins, called altcoins ( alternative coins ).

Is bitcoin a currency or a commodity?

Although its regulatory status varies by region and continues to evolve, Bitcoin is most commonly regulated as either a currency or a commodity, and is legal to use (with varying levels of restrictions) in all major economies. Bitcoin is based on the ideas laid out in a 2008 whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System.

What is the value of bitcoin?

It was estimated in late 2017 that Bitcoin mining consumed 0.14 percent of the world’s electricity production. The value of Bitcoin sharply fell and fluctuated between about $3,500 and $12,000 from 2018 to late 2020, when institutional investors like hedge funds became interested in the currency.