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What is Bitcoin?

In 2009, there is an origin of digital currency - Bitcoin. Satoshi Nakamoto set out the concept in a white paper. Unlike government-issued currencies, bitcoin is operated by a decentralized authority that involves lower transaction fees as compared to traditional online payment mechanisms. However, the current market cap for all bitcoin (abbreviated BTC or, less frequently, XBT) in circulation surpasses $7 billion.


Bitcoins are no physical money, only balance can be kept on a public ledger in the cloud that verifies all Bitcoin transactions through a massive amount of computing power. No banks or government dispensed or funded Bitcoins, nor any individual bitcoins valuable as a commodity. Not being a legal tender, the charts of bitcoin is high on popularity, also contributed towards the launch of other virtual currencies - referred as Altcoins.


A kind of Cryptocurrency - bitcoin balances are maintained through public and private "keys," that are long strings of numbers and letters connect with mathematical encryption algorithm in order to create them. However, the public key (as compared to a bank account number) act as a worldwide address of a user to receive and send bitcoins. The private key (comparable to an ATM PIN) is intended to be a guarded secret, which can only be used to authorize Bitcoin transmissions.



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