Bitcoin is a brand new capital or currency. It is similar to the US dollar, the euro or the peso, but it is not under the control of any company or government.
Bitcoin is not a single institution, but a decentralized peer-to-peer currency, which means it exists on everyone's computer with which it works. [The same as the Internet itself.] Because it is decentralized, no one can break the market by releasing more bitcoin into the market, and no Wall Street bankers stand in the center of every order in the wallet.
The advantage of Bitcoin is that the transaction happens almost immediately and does not require transaction fees – unless the person starting the transaction decides to pay a fee. You will see that because no one is manipulating the Bitcoin network, there are computers on the planet that can help identify every transaction that occurs – a process called "mining."
To motivate these “miners” to help certify all transactions, the Bitcoin network occasionally grants bitcoins to miners. Currently, 25 bitcoins are awarded in the form of a lottery system approximately every 10 minutes. The program behind Bitcoin handles the lottery, it is completely open source, so everyone can see it.
The bitcoin award rate will be halved to 12.5 in 2017 and then halved every four years until the final bitcoin is obtained in 2140. Then, there will be around 21 million bitcoins in total – absolutely no more. According to the current exchange rate, there are more than $1.4 billion in bitcoin on the market.
The way bitcoin transactions work is very basic. Everyone has a bitcoin wallet that they can use to send and receive funds. This wallet is a simple string of letters and numbers that helps keep the wallet completely confidential, unless the person chooses to link himself to the wallet. The private nature of Bitcoin transactions makes it used for a variety of illegal activities.
Despite the ban on purchases, Bitcoin is recognized by thousands of institutions, programs and economies on the planet.
Bitcoin was originally designed by Satoshi Nakamoto in 2008, and the first bitcoin transaction took place in 2009. If you actually only invested a few hundred dollars in bitcoin at the beginning, then today these bitcoins will be worth millions of dollars. Exactly, what are you waiting for – come and get your bitcoin!