What is Bitcoin?

Bitcoin first cryptocurrency was created by satoshi nakamotu . Bitcoin was designed to have a fixed money supply, therefore cashing out would be impossible. It is an unregulated digital currency with no central bank or financial authority. It is not tied to a physical form of currency and cannot be inflated by print or gold mining like other fiat currencies in circulation today such as the US dollar, Euro, or Japanese Yen.

Bitcoin is often considered as anonymous digital currency due to its decentralized nature and use all over world for commercial transactions without the need for bank account details. All Bitcoin transactions are public and can be seen on a public ledger but the identity of the user can not be discerned.

Bitcoin is based on peer-to-peer technology, so there is no central authority to issue new money or keep track of transactions. Instead, everybody in the system is responsible for verifying transactions and keeping each other honest. All transactions are stored publicly and permanently on the network, which means that anyone can see the balance and transactions of any Bitcoin address.

Bitcoin is a computer protocol, and it should not be confused with a physical form of currency. Most users of bitcoin are known as "miners" because they contribute their computing power to help verify and record payments in Bitcoin's public ledger or "blockchain". The ledger is called the "blockchain" because it is made up of individual records, also called blocks. A blockchain acts like a distributed database, constantly growing as more transactions take place. The blockchain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the blockchain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

Bitcoin uses public-key cryptography, in which two cryptographic keys, one public and one private, are generated. At its most basic, a wallet is a collection of these keys. Users are said to have "Bitcoin addresses", which are hashed, since they resemble a string of letters and numbers. You can think of this hash as a kind of electronic fingerprint; it's unique to each user.