What is bitcoin and how does it work?

Bitcoin is, at its root, a math-based digital currency. Its value is based on scarcity versus demand and its governing body in the world. Those sound like very abstract ideas, but in 2009 a person named Satoshi Nakamoto made it very specific when he published a white paper on how a free, global currency could work.

Who controls the bitcoin network?

Instead, different stakeholders control different aspects. The Bitcoin network includes two main components: the actual currency, Bitcoin; and the blockchain, a decentralized ledger system that logs the funds in and out. Miners are the people that use their computing power to make the Bitcoin network run.

What is Bitcoin (BTC)?

The native cryptocurrency of the Bitcoin network, called bitcoin (BTC) Bitcoin runs on a peer-to-peer network where users — typically individuals or entities who want to exchange bitcoin with others on the network — do not require the help of intermediaries to execute and validate transactions.

Is there a physical version of bitcoin?

It’s been used as a medium of exchange, a store of value, and a unit of account—which are all properties of money. Meanwhile, it only exists digitally; there is no physical version of it. Who created Bitcoin? To really grasp how bitcoin works, it helps to start at the beginning.