What is Bitcoin?

So what is Bitcoin? Here is the definition found on the Wikipedia page.

  • Bitcoin is a peer-to-peer payment system and digital currency introduced as open source software in 2009 by pseudonymous developer Satoshi Nakamoto. It is a cryptocurrency, so-called because it uses cryptography to control the creation and transfer of money. Conventionally “Bitcoin” capitalized refers to the technology and network whereas lowercase “bitcoins” refers to the currency itself. Bitcoins are created by a process called mining, in which participants verify and record payments in exchange for transaction fees and newly minted bitcoins. Users send and receive bitcoins using wallet software on a personal computer, mobile device, or a web application. Bitcoins can be obtained by mining or in exchange for products, services, or other currencies.

Here’s a succinct video explaining bitcoin.

And then here’s a much more in depth explanation. If you’re interested in mining for bitcoins then I suggest you check this one out!

Another great definition of what bitcoin is comes from www.bitcointalk.org. A brief quote below:

Forget most things you’ve heard.  People discover Bitcoin in a variety of ways, but usually pick up some sort of misconception like “Bitcoin gives free money to people with computers” or “in order to use Bitcoin I have to use a program that wastes electricity for nothing” along the way.  Here is a good summary to help you understand Bitcoin in general, by focusing on what Bitcoin is and what problem it solves.  These two things are not typically well explained on most websites, and it is difficult to appreciate just how effective a technology Bitcoin is until they are understood.

What Bitcoin is:  An agreement amongst a community of people to use 21 million secure mathematical tokens–“bitcoins”–as money, like traditional African and Asian societies used the money cowry.  Unlike the money cowry:

  • there will never be more bitcoins

  • they are impossible to counterfeit

  • they can be divided into as small of pieces as you want

  • and they can be transferred instantly across great distances via a digital connection such as the internet.

For the rest of this article please visit www.bitcointalk.org.

The best place for “all things bitcoin” is www.bitcoin.org.  If you have any questions shoot them to me below and I’ll try my best to point you in the right direction.

Chris