What is Bitcoin and Who created it?
A software developer called Satoshi Nakamoto proposed the “bitcoin protocol”, as an encrypted electronic payment system based on mathematical proof. The idea was to produce a currency independent of any banks or central authority, transferable electronically, more or less instantly, with negligible transaction fees. Now that you are aware of Bitcoin you will notice it’s symbol all over the place if you are buying something online.
What makes it different from normal currency?
Bitcoin can be used to purchase virtually anything electronically, so it’s like conventional dollars, euros, or GB Pounds, which can also be traded digitally. However, Bitcoin is decentralized. No single institution, government or bank controls the bitcoin network. This puts some people at ease, because it means that a large bank can’t control their money. Instead of a bank account you keep your Bitcoin in a digital wallet which is extremely secure and encrypted. So, what is Bitcoin for? Anything, and the ability to use it continues to grow exponentially.
So you can’t churn out unlimited bitcoins?
That’s right. The bitcoin protocol (the set of rules that make bitcoin work) say that only 21 million bitcoins can ever be created by miners. However, these coins can be divided into smaller parts (the smallest divisible amount is one hundred millionth of a bitcoin).