December 14th, 2013 5:00 am

What is a Bitcoin?

A Bitcoin is a type of electronic currency that cannot be traced. It uses technology to operate with no central authority or bank to manage transactions. The issuing of Bitcoins is an open-source, public design that nobody owns or controls. It is essentially a peer to peer electronic payment network introduced in 2009 and uses cryptography to secure transactions. From a user perspective, Bitcoin is pretty much like cash for the Internet. If a collection of Bitcoin addresses exists, it is known as a “wallet”, thefts of these Bitcoins have been extensively covered in the media. Mobile devices (and apps), computers, hardware devices can all be used as wallets and allow a user to complete a transaction.

Bitcoins are used by many legitimate entities like restaurants, apartments, law firms, WordPress, and many other establishments. However, Bitcoins can be untraceable and this makes Bitcoins very susceptible for improper use. Be careful accepting Bitcoins and also purchasing Bitcoins.

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