What is bitcoin and how does it work?

What is Bitcoin? Bitcoin is the first and most widely recognized cryptocurrency. It enables peer-to-peer exchange of value in the digital realm through the use of a decentralized protocol, cryptography, and a mechanism to achieve global consensus on the state of a periodically updated public transaction ledger called a 'blockchain.'

What is a bitcoin client?

And the bitcoin client, or for that matter you can use a service like Mt. Gox which will effectively do the same work as a client for you. But the short of it is that anyone who has a bitcoin client or who has an account with an exchange like Mt. Gox can engage in bitcoin transactions.

Why is bitcoin so hard to understand?

The crypto world dreams of playing an essential role in the global economy, offering an alternative to dollars and pounds. But alas, for many, the industry can feel impossible to understand because it is so technical. Read on to find bitcoin explained simply – demystifying the world’s biggest cryptocurrency.

Are bitcoins backed by the government?

That’s by design: Core to their decentralized nature, Bitcoins aren’t backed by the government or any issuing institution, and there’s nothing to guarantee their value besides the proof baked in the heart of the system.