What exactly is a Bitcoin?

WHAT IS A SINGLE UNIT OF BITCOIN

An extremely complex software code.

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*WHERE DO THEY COME FROM

Bitcoins were designed by an unknown person, or persons, known as Satoshi Nakamoto in 2009. They’re held in the Bitcoin network, from which they’re extracted or mined by computers.

Bitcoins are currently mined in lots of 25, but the number of units in a lot halves approximately once every four years.

Mining takes a lot of time for computers to process and the difficulty changes in response to the amount of computing power that miners are direct at the network.

Companies and syndicates set up for the sole purpose of Bitcoin mining exist, and yes they consist primarily of rooms full of computers trying to process the network.

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HOW MANY BITCOINS EXIST

There are currently almost 16 million in circulation and only 21 million will ever be mined, in accordance with the Bitcoin creator’s rules.

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WHAT ARE THEY WORTH

The price of Bitcoins wildly fluctuates, but they were worth $899 at the time of publication.

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WHO DECIDES WHAT THEY’RE WORTH

The users – the price of bitcoins is determined by market supply and demand. But rather than thinking about the value of bitcoins like real money, they’re better viewed as a commodity like gold.

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HOW DO PEOPLE GET BITCOINS

Bitcoins can be bought online with cash from bitcoin traders and many businesses accept them as a form of payment for goods or services.

Bitcoin ATMs also exist where people can insert money to buy them, or sell their bitcoins and withdraw cash.

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WHERE DO YOU KEEP THEM

Bitcoins are stored in a Bitcoin wallet similar to a bank account, which can be run by third-party websites, mobile apps, computer software or even computer hardware.

All Bitcoin users can view a ledger of every transaction in the network, which is known as the blockchain.

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(Source: CoinDesk.com, Bitcoin.org, Bitcoin Foundation, Bitcoinclock.com, Khan Academy and MarketWatch.com)

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TheBitcoinNews.com – leading Bitcoin News source since 2012

Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. The information does not constitute investment advice or an offer to invest.