- What is it?
- Basically it is a digital form of currency, that is created electronically and held electronically.
- It is not printed and it has no physical form.
- It is an electronic payment system based off of mathematical proof.
- How is it made?
- They are created by people and it's becoming more common that it's made by businesses running computers.
- These computers are all over the world running software that solves mathematical problems, which is where the bitcoins come from.
- Who and Why?
- It was invented by Satoshi Nakamoto, a software developer in Japan.
- He wanted to create a currency free from any central authority, which makes for lower transaction fees.
- Characteristics:
- Limited number of bitcoins can exist. It is said that there can only be 21 million bitcoins created by miners. Although it can be divided into smaller parts, the smallest is a one hundred millionth of a bitcoin.
- Decentralized- as discussed above it is not controlled by any institution.
- Easy to set up- You can set up a bitcoin account in seconds with no questions asked or fees.
- Anonymous- Its linked to a bitcoin account but those aren't linked to names or anything.
- Non-repudiable- Once you send bitcoins to someone, there is no way to ever get them back.
Monday, November 30, 2015
Bitcoin
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