what is bitcoin

Bitcoin is a decentralized digital currency created in 2009 by an unknown person or group of people using the alias Satoshi Nakamoto. It is a peer-to-peer system, meaning that transactions take place directly between users and do not require a middle-man such as a bank or government. Bitcoin is a decentralized form of currency, meaning it is not backed by any central bank or government. Instead, bitcoins are created, or “mined”, by computers solving complex algorithms. Bitcoin is unique in that it is not printed like traditional currencies. Instead, it is completely digital and relies on a global network of computers to process transactions. All of the computers on this network keep a record of all Bitcoin balances, and all new transactions are added to the blockchain, a public ledger that records every transaction ever made using Bitcoin. An example of how Bitcoin works is if someone sends you 10 bitcoins, that transaction is broadcast to the network and is confirmed within 10 minutes. Once the transaction is confirmed, the 10 bitcoins are added to your wallet, and you can use them to purchase goods and services online. One of the most popular uses for Bitcoin is as an investment. Bitcoin has been around for over a decade and has gained a lot of attention in recent years as its value has skyrocketed. In 2017, the price of one Bitcoin rose from around $1,000 to nearly $20,000. Fun Fact: The highest recorded transaction with Bitcoin was the purchase of a Tesla Model S, which cost the buyer 91.4 bitcoins.