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.

What is the unit of account of bitcoin?

The unit of account of the bitcoin system is the bitcoin. Currency codes for representing bitcoin are BTC [a] and XBT. [b] : 2 Its Unicode character is ₿. One bitcoin is divisible to eight decimal places.

How do I use Bitcoin?

To use your Bitcoin, you need to have a cryptocurrency wallet. Wallets hold the private keys to the bitcoin you own, which need to be entered when you're conducting a transaction. Bitcoin is accepted as a means of payment for goods and services at many merchants, retailers, and stores.

Is bitcoin a currency or a payment system?

Per some researchers, as of 2015 [update], bitcoin functions more as a payment system than as a currency. Economists define money as serving the following three purposes: a store of value, a medium of exchange, and a unit of account. According to The Economist in 2014, bitcoin functions best as a medium of exchange.