Bitcoin is a digital currency created in 2009. It uses peer-to-peer technology to create and manage monetary transactions without needing a central bank or an intermediary. It was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto and they released its code as open-source software.
How does Bitcoin work?
Bitcoin is a cryptocurrency that is conducted on a public ledger, the “blockchain.” Digitally transferred, it exists only online. Much like gold, it can have monetary value while also being a commodity, but it’s still its own currency. It is also decentralized and not managed by a single entity, but rather a group of people who process transactions, called miners. This means it is not subject to government regulations when traded or spent, and you don’t need a bank to use it.