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Essential pointsBitcoin is a digital currency known as a cryptocurrencyThe peer-to-peer technology underpinning it is known as the blockchain a public ledger of all transactionsBitcoins can be stored in a virtual wallet and used to buy other currencies or actual world goods

Where once a single bitcoin was worth a few cents it's now worth about $9,200 per coin (November 2017), creating millionaires in the process.There have been many reported cases where people mined thousands of comparatively useless bitcoins as a hobby years back, only to now realise they are rich.One IT employee even threw out a hard drive containing 7,500 bitcoins.

All this is done without a central authority or bank.Who generated itBitcoin and also the blockchain technology was made by someone under the pseudonym of Satoshi Nakamoto and released as a working beta in 2009. Satoshi's true identity remains a puzzle as he vanished from the scene in 2010 after seemingly handing over the reins into Gavin Andresen, the chief scientist at the Bitcoin Foundation.Over years numerous people have promised to become Satoshi, including Australian computer scientist Craig Wright.

Once the limit is reached, no longer bitcoins can be made.However, a single bitcoin can be subdivided as far down as the decimal place (0.00000001BTC) to purchase smaller goods using just a fraction of these coin.How would you shop or send bitcoinYou can shop and send bitcoins via an encrypted electronic wallet, which can be run as a program on your computer.The wallet functions using two keys that a private key and a public key which look to be a seemingly random string of numbers and letters.The private key is kept secret by you and functions as a password that unlocks the wallet and allows you to send any bitcoins associated with that.

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In case the web site gets hacked or someone gets your login information that they could access and drain your funds from the exchange.There is no way to get a transaction to be reversed or recovered if a burglar sends your bitcoins to their wallet.After buying your coins you need to transfer them into a secure digital wallet created by you and not hosted online.You can even write down the wallet's private key on a sheet of paper (that is known as a paper wallet) and stick it in a safe.If you don't save the personal key on your pc or online then recipients can never break in and access your funds.

Bitcoin means different things to different people. For some, it's a future of freely moving currency untied to any central bank. To the others, it is a purely digital entity of questionable worth and dubious origin. But what is Bitcoin, in the most elementary senseIn most casual conversations, you can eliminate knowing that bitcoin is, essentially, an electronic currency.

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In fact, it is two much more complicated things.Bitcoin has been with us since 2009, when a person (or group) under the pseudonym Satoshi Nakamoto introduced a stage (Bitcoin, uppercase) that hosts a digital currency (bitcoin, lowercase). Bitcoin the stage is built on the concept of evidence of work information that is expensive and time-intensive to create but can be readily verified.

To mine a bitcoin, a computer must complete a complicated algorithm, essentially going through the work of an extensive calculation in exchange for a few newly minted currency. That piece of digital currency is worth whatever the market determines through supply and demand.Transactions are connected to some users Bitcoin speech, which is stored on its own general ledger, called the blockchain.

This relative anonymity makes the platform appealing for things such as incognito purchases over the internet.A key component of Bitcoins blockchain is the simple fact that it is an open, distributed ledger. Throughout the dispersed nature of the ledger, the transactions on additional reading the blockchain are verified from the consensus of each member, a fantastic read offering security and trust without a third-party overseer.One of the most important things to bear in mind when thinking about what Bitcoin (or bitcoin) is: that there is no single answer.