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Essential pointsBitcoin is an electronic currency known as a cryptocurrencyThe peer-to-peer technology underpinning it's known as the blockchain a public ledger of transactionsBitcoins can be stored in a virtual wallet and used to Purchase other currencies or real 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 instances where individuals mined thousands of relatively worthless bitcoins as a hobby years back, only to now realise they're rich.One IT employee even threw out a hard drive containing 7,500 bitcoins.

All this is done with no central authority or bank.Who generated itBitcoin and also the blockchain technology was created by someone under the pseudonym of Satoshi Nakamoto and published as a working beta in 2009. Satoshi's true identity remains a puzzle as he disappeared from the scene in 2010 after seemingly handing over the reins into Gavin Andresen, the chief scientist in the Bitcoin Foundation.Over the years numerous people have claimed to become Satoshi, including Australian computer scientist Craig Wright.

Once the limit is reached, no more 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 the coin.How do you store or send bitcoinYou can shop and send bitcoins from an encrypted digital wallet, which can be run as an app on your computer.The wallet works with two keys that a private key and a public key which look like 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 it.

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

Bitcoin means different things to different people. For many, it's a future of moving currency untied to any find more info central bank. To others, it's a purely electronic entity of questionable value and doubtful origin. However, what's Bitcoin, in the most basic senseIn most casual conversations, you can get away with knowing that bitcoin is, basically, a digital currency.

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In fact, it is two considerably 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 data which is expensive and time-intensive to create but can be easily verified.

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

This relative anonymity makes the platform appealing for things like incognito purchases over the internet.A key component of Bitcoins blockchain is the fact that it is an open, distributed ledger. Throughout the dispersed nature of this ledger, the transactions on the blockchain are verified by the consensus of each member, offering protection and trust with no third-party overseer.One of the most important things to keep in mind when thinking about what Bitcoin (or bitcoin) is: that there is no single answer.