Bitcoin is a digital currency, or cryptocurrency, that is not controlled by any central bank or government but by a decentralized network of users. Like traditional currencies, such as the U.S. dollar, Bitcoin possesses value relative to other currencies and physical goods.
The first public record of Bitcoin dates to October 2008, when a pseudonymous person or organization known as Satoshi Nakamoto published a white paper with the technical details for a new, decentralized cryptocurrency. Nakamoto released Bitcoin's open-source code in January 2009, marking the beginning of its public mining and trading
A whole Bitcoin units can be subdivided into decimals representing smaller units of value. It can be used to purchase goods from an ever-growing community of merchants that accept Bitcoin payments. It can be exchanged with other private users in lieu of their services or to settle outstanding debts. It can be swapped for other currencies on exclusive cryptocurrency exchanges that are similar to the for-exexchanges.
Bitcoin is a cryptocurrency, that uses a source code that uses highly complex algorithms to prevent unauthorized duplication or creation of Bitcoin units. It's nearly impossible to break Bitcoin's source code and manipulate the currency's supply.
The bitcoin system is designed to publicly record and update Bitcoin transactions and other relevant data without revealing the identity of the individuals or groups involved. Instead, Bitcoin users are identified by public keys, that serve as the requisite address during a transaction.
Bitcoin exchanges allow users to exchange Bitcoin units for numerous fiat currencies. Many of these exchanges also exchange Bitcoin units for other cryptocurrencies, including less popular counterparts that can't directly be exchanged for fiat currencies. Most Bitcoin exchanges take a cut for their services, typically less than 1%, of each transaction's value.
The Bitcoin units are stored at secure places known as "wallets". These wallets protect and store Bitcoin that aren't currently being used as they're vulnerable to hacking – particularly those stored at the public wallets used by Bitcoin exchanges
Bitcoin exchanges ensure the liquidity of the bitcoin market, setting their value relative to traditional currencies – and allowing holders to profit from speculation on fluctuations in that value. Having said that, users of bitcoin must understand, that Bitcoin's value is very volatile.
A revolutionary cutting edge technology known as blockchain is the bedrock of bitcoin's functionality and value.in simple terms, the blockchain is a public, distributed ledger of all prior Bitcoin transactions, which are stored in blocks. Every node of Bitcoin's software network includes servers and terminals, run by individuals or groups known as miners, whose efforts creates new bitcoins in the system.
Today, there are tons of online businesses accepting wide variety of cryptocurrencies such as Bitcoin, Litecoin, Ripple, Dash, DogeCoin, etc. (especially the online gambling industry where Cryptocurrency is widely accepted to play games at Bitcoin Casinos).
To get more detailed information about Bitcoin and Blockchain technology, please check the following infographic developed by our friends at Bitcoinfy.net, and please share your thoughts.