WHAT IS BITCOIN?

WHAT IS BITCOIN?

Bitcoin can be described in several ways. Bitcoin is the first successful digital currency, it is a blockchain acting as a public ledger (like a public database of information), it is a crypto currency (owing to its use of encryption); as well as a commodity or store of value- according to who you ask and what their use is for Bitcoin. It exists however as a file of information, stored on computers, shared and updated every few moments across all its participants through the internet.

Bitcoin serves different purposes for different people:

Some see Bitcoin as digital gold, owing to its use as a store of value and being classified by certain state authorities as a commodity and traded on a mercantile exchange, the same as gold. For people in some countries with unstable economies, Bitcoin, despite its huge volatility, is still more stable and a better store of wealth than national currencies.

Some see Bitcoin primarily as a currency, especially those living in regions with hyper-inflation and weak central governments. It also functions without needing access to a bank account, or being dependant on a third party. Bitcoin can be sent across borders, to anyone with access to the internet. All one needs to receive Bitcoin is a Bitcoin address – which can be generated on virtually any computer.

Bitcoin can be sent to anyone with a Bitcoin address anywhere in the world, in minutes, for a small fee (the equivalent of a few US dollars.) As a result, Bitcoin has become very popular as a payment method and is now accepted by an increasing number of companies around the world.