Bitcoin is both a form of digital money and a type of online bank account and remarkably, it does not require a trusted central authority. No one controls it, and Bitcoins aren’t created at the discretion of governments, like dollars or euros.

 

Bitcoins are hidden in a series of complex mathematical problems of increasing difficulty. Every day Bitcoins are found by computers all around the world that solve one of the problems. The organisations that find the Bitcoin, often called miners, then exchange their Bitcoin for  something else of value, like dollars, and the Bitcoins are released into the world. Once the last Bitcoin is found, that is it. There will be no more.

 

Bitcoin uses a revolutionary cryptographic technology called Blockchain to keep it secure, and as such it is often referred to as a crypto currency. Since its inception in 2008, Bitcoin has grown into a technology, a currency, an investment, and a community. Bitcoin is often described as digital gold.

 

Check out the below video on bitcoin to see how it works.

What is bitcoin?