Bitcoin is digital money that allows secure, direct peer-to-peer transactions on the internet. It is not controlled by a central authority, and its creation and transactions are verified by a vast network of computers using cryptography. It is often compared to digital gold for its scarcity, and it acts as a store of value that can appreciate in price.

Bitcoin’s Impact: Transforming Finance and Beyond

You can purchase Bitcoin through an exchange, or receive it as payment for goods or services. It can be stored in a wallet, which is like an email account, or on a computer or mobile device. The wallet can be used to send Bitcoin to other people, or to pay online retailers who accept it. The wallets are encrypted to protect the user’s privacy and identity.

It is possible to reverse transactions with credit cards and conventional online payment systems, but with Bitcoin and the other coins in its ecosystem, once a transaction is confirmed it can’t be undone. This is known as immutability. Bitcoin’s blockchain is a public ledger, and every confirmation is added to the previous one. The verification of the transactions is done by a large network of computers, known as miners, that pool their computing power to check for errors in the blockchain.

Because of these characteristics, Bitcoin is gaining acceptance as an investment and a way to transfer wealth, in addition to its use for payments. As a result, its price is volatile and has seen sharp ups and downs.