What is Bitcoin?
When you buy something online with Bitcoin, the transaction is recorded on a public ledger called the blockchain. People on the internet, called miners, use their computers to verify and secure the blockchain. Bitcoin is often compared to gold or digital cash, but it has more properties of a commodity than a currency. For example, it is finite and limited in supply, which makes it potentially more valuable over time. Some people buy it as a long-term investment, hoping its value will rise. Others use it to pay for things, as it can be easily converted back into real money on a number of cryptocurrency exchanges.
Bitcoin Wallets: Safeguarding Your Digital Assets
The invention of Bitcoin solves an important problem for commerce on the internet: How do you transfer value between two people without a trusted third party (like a bank or credit card company) in the middle? With Bitcoin, anyone can send money anywhere in the world instantly and without fees.
In addition, a bitcoin transaction is irreversible once it’s confirmed. This is a big difference from credit cards, where transactions can be reversed months later by the centralized banks that manage them. Bitcoin is a global payment network that anyone can join, and it’s the first of its kind to be built entirely on open source technology. It has the potential to create an open financial system that is more efficient, free, and innovative than any that has gone before.