What is exactly is Bitcoin?

4 years ago

I`ve been hearing a lot about bitcoin in the news lately but I`m still not sure what it is and how it works. Supposedly it`s some sort of online currency. But who issues it and regulates it?

According to wikipedia:
Bitcoin (BTC) is an online commodity that is based on an open-source, peer-to-peer encryption protocol first described in 2009 by a pseudonymous developer (or developers) Satoshi Nakamoto. It serves as a form of digital currency on an Internet-based network that is not managed by any central authority. The creation of new bitcoins is automated and may be accomplished by servers, called bitcoin miners that confirm bitcoin creation by adding codes to a decentralized log, which is updated and archived periodically. Each bitcoin is subdivided into 100 million smaller units called satoshis, defined by eight decimal places.

Huh? It`s all been interesting but I wonder who uses it actually. According to the article below you can actually use it at a one bar in NYC to buy beer. If that`s the case, can bitcoin currency be exchanged for real currency? If so, who does it? So many questions!

Are you familiar with Bitcoin?

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Source link: http://www.popsci.com/technology/article/2013-04/how-order-beer-bitcoins

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