What Is Bitcoin?
Bitcoin is a decentralized digital currency that’s secured using cryptography. Bitcoin, and other digital coins like it, are called cryptocurrency.
Bitcoin users “mine” and “store” individual units of the cryptocurrency, and all units of Bitcoin are linked together by a central ledger (i.e. record of transactions). That ledger is a core Bitcoin feature called the “blockchain.” The blockchain validates and records every single transaction made using Bitcoin, ensuring the integrity of the Bitcoin network.
However, unlike regular fiat currency, there is no central Bitcoin bank or government. The creation and regulation of Bitcoin is controlled by an algorithm and is entirely digital. You cannot hold a physical Bitcoin in your hand, but you can hold physical hardware that contains data that corresponds to the Bitcoins you own.
Bitcoin is expensive. There aren’t many who can afford to buy one entire Bitcoin outright; instead, most people buy fractions of a Bitcoin. This is possible because Bitcoins are divisible to eight decimal places, meaning you can own as little as 0.00000001 BTC. You can’t do much with it, but you can definitely own it.
For example, let’s say you have $1,000 USD and want to buy some Bitcoin. As of this writing, that much cash would net you around 0.15 BTC. If the price of Bitcoin were to rise, so would the value of the Bitcoins you own, and vice versa should the price of Bitcoin fall.
Bitcoin is a decentralized digital currency that’s secured using cryptography. Bitcoin, and other digital coins like it, are called cryptocurrency.
Bitcoin users “mine” and “store” individual units of the cryptocurrency, and all units of Bitcoin are linked together by a central ledger (i.e. record of transactions). That ledger is a core Bitcoin feature called the “blockchain.” The blockchain validates and records every single transaction made using Bitcoin, ensuring the integrity of the Bitcoin network.
However, unlike regular fiat currency, there is no central Bitcoin bank or government. The creation and regulation of Bitcoin is controlled by an algorithm and is entirely digital. You cannot hold a physical Bitcoin in your hand, but you can hold physical hardware that contains data that corresponds to the Bitcoins you own.
Bitcoin is expensive. There aren’t many who can afford to buy one entire Bitcoin outright; instead, most people buy fractions of a Bitcoin. This is possible because Bitcoins are divisible to eight decimal places, meaning you can own as little as 0.00000001 BTC. You can’t do much with it, but you can definitely own it.
For example, let’s say you have $1,000 USD and want to buy some Bitcoin. As of this writing, that much cash would net you around 0.15 BTC. If the price of Bitcoin were to rise, so would the value of the Bitcoins you own, and vice versa should the price of Bitcoin fall.
