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Essential pointsBitcoin is a digital currency known as a cryptocurrencyThe peer-to-peer technology underpinning it's known as the blockchain a people ledger of all transactionsBitcoins can be stored in a virtual wallet and used to Purchase other currencies or actual world goods

Where once a single bitcoin was worth a few cents it's now worth about $9,200 per coin (November 2017), creating millionaires in the process.There have been many reported cases where people mined thousands of comparatively useless bitcoins as a hobby years ago, only to now realise they are rich.One IT worker even threw out a hard drive containing 7,500 bitcoins.

All this is done without a central authority or bank.Who generated itBitcoin and also the blockchain technology was made by someone under the pseudonym of Satoshi Nakamoto and released as a working beta in 2009. Satoshi's true identity remains a mystery as he vanished from the scene in 2010 after seemingly handing over the reins into Gavin Andresen, the chief scientist at the Bitcoin Foundation.Over years numerous people have claimed to become Satoshi, including Australian computer scientist Craig Wright.

Once the limit is reached, no more bitcoins can be made.However, a single bitcoin can be subdivided as far down as the decimal place (0.00000001BTC) to buy smaller goods using only a fraction of these coin.How do you shop or send bitcoinYou can shop and send bitcoins from an encrypted electronic wallet, which is run as a program on your computer.The wallet works with two keys that a private key and a public key which seem like a seemingly random string of numbers and letters.The private key is kept confidential by you and functions as a password that unlocks the wallet and lets you send any bitcoins connected with that.

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In case the website gets hacked or someone gets your login information they can access and drain your funds from the exchange.There is no way to get a transaction to be revoked or revoked if a thief sends your bitcoins to their wallet.After buying your coins you need to transfer them into a secure digital wallet created by you and not hosted online.You can even write down the pocket's personal key on a sheet of paper (this is known as a paper wallet) and stick it in a safe.If you don't store the personal key on your computer or online then recipients can never break in and get your funds.

Bitcoin means different things to different people. For some, it's a future of moving currency untied to any central bank. To the others, it's a purely electronic entity of questionable value and dubious origin. However, what is Bitcoin, in the most basic senseIn most casual conversations, you can eliminate knowing that bitcoin is, essentially, an electronic currency.

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In fact, it is two much more complex things.Bitcoin has been with us since 2009, when a person (or group) under the pseudonym Satoshi Nakamoto introduced a stage (Bitcoin, uppercase) that hosts a digital currency (bitcoin, lowercase). Bitcoin the platform is built on the concept of proof of work data that is expensive and time-intensive to produce but can be easily verified.

To mine a bitcoin, a computer must complete a complicated algorithm, essentially going through the work of an extensive calculation in exchange for a few newly minted currency. That piece of electronic currency is worth whatever the market determines through distribution and demand.Transactions are connected to some users Bitcoin speech, which can be stored on its own general ledger, known as the blockchain.

This comparative anonymity resource makes the system appealing for things like incognito purchases within the internet.A key component of Bitcoins blockchain is the simple fact that it is an open, distributed ledger. Throughout the dispersed nature of this ledger, the transactions on the blockchain are confirmed by the consensus of every member, offering protection and trust without a third-party overseer.One of the most important things to bear in mind when thinking about exactly what Bitcoin (or bitcoin) is: that there is no single answer.