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What are its characteristics?

It's decentralized

Every machine that mines bitcoin and processes transactions makes up a part of the network,.

It's completely transparent

Anyone can tell how many bitcoins are stored at any address.

It's easy to set up

You can set up a bitcoin address in seconds, no questions asked, and with no fees payable.

Transaction fees are small

Your bank may charge you a £10 fee for international transfers. Bitcoin doesn’t.

It's anonymous

Users can hold multiple bitcoin addresses, and they aren’t linked to names, addresses, or other personally identifying information.

It’s fast

You can send money anywhere and it will arrive minutes later, as soon as the bitcoin network processes the payment.

What is Bitcoin?

Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.It’s the first example of a growing category of money known as cryptocurrency.

What makes it different from normal currencies?

Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.

However, bitcoin’s most important characteristic, and the thing that makes it different to conventional money, is that it is decentralized. No single institution controls the bitcoin network. This puts some people at ease, because it means that a large bank can’t control their money.

Who created it?

A software developer called Satoshi Nakamoto proposed bitcoin, which was an electronic payment system based on mathematical proof. The idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees.

Who prints it?

No one. This currency isn’t physically printed in the shadows by a central bank, unaccountable to the population, and making its own rules. Those banks can simply produce more money to cover the national debt, thus devaluing their currency.

Instead, bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are ‘mined’, using computing power in a distributed network.

This network also processes transactions made with the virtual currency, effectively making bitcoin its own payment network.

What is bitcoin based on?

Conventional currency has been based on gold or silver. Theoretically, you knew that if you handed over a dollar at the bank, you could get some gold back (although this didn’t actually work in practice). But bitcoin isn’t based on gold; it’s based on mathematics.

Around the world, people are using software programs that follow a mathematical formula to produce bitcoins. The mathematical formula is freely available, so that anyone can check it.

The software is also open source, meaning that anyone can look at it to make sure that it does what it is supposed to.

"You can't stop things like Bitcoin. It will be everywhere and the world will have to readjust. World governments will have to readjust"

John McAfee, Founder of McAfee

„Proti hluposti se bojovat musí, ale vyhrát se nedá!“ Jan Werich