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Key pointsBitcoin is a digital currency known as a cryptocurrencyThe peer-to-peer technology underpinning it is known as the blockchain a people ledger of all 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 cases where individuals mined thousands of relatively useless bitcoins as a hobby years back, only to now realise they are rich.One IT worker even threw out a hard disk containing 7,500 bitcoins.

All this is done without a central authority or bank.Who created 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 mystery as he disappeared from the scene in 2010 after seemingly handing over the reins to Gavin Andresen, the chief scientist at the Bitcoin Foundation.Over years numerous individuals 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 eighth decimal place (0.00000001BTC) to buy smaller goods using only a fraction of these coin.How would you store or send bitcoinYou can store and send bitcoins via an encrypted digital wallet, which is run as an app on your computer.The wallet works using two keys that a private key and a public key which seem to be a seemingly random string of numbers and letters.The private key is kept confidential by you and acts as a password that unlocks the wallet and lets you send any bitcoins connected with it.

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In case the website gets hacked or someone gets your login information that they can access and drain your funds from the exchange.There is no way for a transaction to be reversed or recovered if a burglar sends your bitcoins for their wallet.After buying your coins you should transfer them to 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 (this is known as a paper wallet) and stick it read more in a safe.If you don't save the personal key on your computer or online then hackers can never break in and get your funds.

Bitcoin means different things to different individuals. For many, it's a future of moving currency untied to any central bank. To others, it's a purely electronic entity of questionable worth and dubious origin. But what's Bitcoin, in the most elementary senseIn most casual conversations, you can get away with 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 platform (Bitcoin, uppercase) that hosts a digital currency (bitcoin, lowercase). Bitcoin the platform is built on the concept of proof of work data which is expensive and time-intensive to produce but can be readily verified.

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

This comparative anonymity makes the platform appealing for things like incognito purchases within the internet.A key component of Bitcoins blockchain is the simple fact that it is an open, distributed ledger. Throughout the dispersed nature of this ledger, the transactions on the blockchain are confirmed by the consensus of each member, offering protection and trust without a third-party overseer.One read more of the most important things to bear in mind when thinking about exactly what Bitcoin (or even bitcoin) is: there is no single answer.