What exactly is a bitcoin?

*WHAT IS A SINGLE UNIT OF BITCOIN

A 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 hidden in an encrypted computer program, from which they’re mined by computers.

To mine a bitcoin a computer must solve an extremely complex mathematical problem, which gets harder each time a new coin is found.

Today only massive amounts of computing power can solve the difficult problems.

Companies set up for the sole purpose of bitcoin mining exist, and yes they consist primarily of rooms full of computers trying to solve the equations.

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HOW MANY BITCOINS EXIST

There are currently 11 million in circulation and only 21 million will ever be mined, in accordance with the program creator’s rules.

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WHAT ARE THEY WORTH

The price of bitcoins wildly fluctuates, but they were worth $857 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

Read more ... source: TheBitcoinNews

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