What Is Bitcoin? 11 Things You Need To Know About The Digital Currency

virtualcurencybitcoin28 Jan 2014 / Huffington Post Ca – The rise of Bitcoin marks the first time you’ve probably heard the words “trendy” and “currency” uttered in the same sentence. And given the momentum it’s seen lately, both in international headlines and on exchanges, the buzz around digital currency is only going to grow in the next year. Here are answers to 11 pressing questions that will help even the biggest Bitcoin neophyte sound in the know at cocktail parties and water coolers in 2014.

What is Bitcoin?

Bitcoin is the most popular type of digital currency, an online-only alternative form of money. Bitcoin represents two things: Capital “B” Bitcoin refers to the payment network, the whole system behind making payments, while lowercase “bitcoin” refers to the unit of currency itself. The payment network and the currency are both decentralized, meaning that — unlike traditional currency — they are not created, controlled or regulated by a central body.

Why digital currency?

Libertarians tout the “people power” that Bitcoin enables. Because there is no central authority, two people anywhere in the world can transact freely, with no fees and no bank account, instantaneously. They can’t be censored or have their money confiscated or controlled, which happens in some unstable countries. Freedom from government means the rules of bitcoin are set by the market, without political interference. Supporters say that freedom from political interference, along with bitcoin’s limited supply, makes bitcoin a more stable store of value than currencies that can be inflated or deflated through control of the money supply…… Read more


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