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Key pointsBitcoin is a digital currency known as a cryptocurrencyThe peer-to-peer technology underpinning it's known as the blockchain a people ledger of transactionsBitcoins can be stored in a digital wallet and used to Purchase other currencies or actual world goods

Where once a single bitcoin has been 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 instances where people 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 drive containing 7,500 bitcoins.

All this is done without a central authority or bank.Who created itBitcoin and the blockchain technology was created by someone under the pseudonym of Satoshi Nakamoto and released 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 the years numerous individuals have claimed to be 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 just a fraction of the coin.How do you shop or send bitcoinYou can shop and send bitcoins from an encrypted digital wallet, which can be run as an app on your computer.The wallet functions using two keys a private key and a public key which look to be a seemingly random string of numbers and letters.The private key is kept confidential by you and functions as a password that unlocks the wallet and lets you send any bitcoins associated with it.

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In case the website gets hacked or someone gets your login information they could access and drain your funds from the exchange.There is no way to get a transaction to be revoked or revoked if a burglar sends your bitcoins for their wallet.After buying your coins you should transfer them into a secure digital pocket made by you and not hosted online.You can even write down the pocket's personal key on a sheet of paper (this is known as a paper wallet) and stick it in a safe.If you don't save the personal key on your computer or online then recipients can never break in and access your funds.

Bitcoin means different things to different individuals. For some, it's a future of moving currency untied to any central bank. To others, it's a purely digital entity of questionable worth and dubious origin. However, what is Bitcoin, in the most elementary senseIn most casual conversations, you can eliminate knowing that bitcoin is, basically, a digital currency.

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In reality, it is two top article considerably more complex 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 that is expensive and time-intensive to produce but can be easily verified.

To mine a bitcoin, a computer must complete a complicated algorithm, essentially going through the job of an extensive calculation in exchange for some newly minted currency. That piece of digital currency is worth whatever the market decides through supply and demand.Transactions are connected to a users Bitcoin address, which is stored on its general ledger, called the blockchain.

This relative anonymity makes the platform appealing for things such as incognito purchases over the internet.A key component of Bitcoins blockchain is the simple fact it is an open, distributed ledger. Through the distributed 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 of the most important things to bear in mind when thinking about what Bitcoin (or even bitcoin) is: that there is no single answer.