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For good or for ill, Bitcoin is being explored by every major world bank and may very well be the backbone of our global financial system in the near future.

Use charts, watch videos, learn new Bitcoin related terms, and get all of your questions answered about Bitcoin here at Investopedia. Bitcoin's origin story sounds like something out of science fiction: It was launched in on the heels of a white paper published by the mysterious Satoshi Nakamoto, whose real identity — and country of origin — are unknown.

Nakamoto conceived of Bitcoin as a currency that was 1 encrypted; 2 decentralized, i. With no ties to a national economy and lofty goals, Bitcoin's price is famously volatile. Prices have soared and plummeted in the wake of various national policies, financial deals, competing cryptocurrencies, and fluctuating public opinion.

On the other hand, as many sovereign nations find themselves with currencies that are also vulnerable, the citizens of countries such as China and Venezuela are turning increasingly to virtual currencies.

Bitcoin in the News. Ask a question What is Bitcoin Mining? What is Bitcoin Mining? Swell is Ripple's annual conference for leaders in the cryptocurrency space. Gas price is a distinct unit of charging for transactions processing and computational use on the Ethereum network. Populous is a peer-to-peer invoice platform founded in Wei is the smallest denomination of ether, the cryptocurrency token on the Ethereum network.

Raiden Network will speed up the transfer processing on the Ethereum network, supporting its scalability. Gwei is the one of the commonly used denominations of ether ETH , the cryptocurrency token on the Ethereum network. View the breaking news and trends about cryptocurrencies. We also offer the BTC price converted into in any of our supported currencies. The word Bitcoin comes from the English word bit - unit of information, and coin.

This is a decentralized virtual currency, and the Bitcoin system itself is an open source payment internet service through which peer-to-peer financial operations are carried out. The Bitcoin itself is a coded digital series that meets certain mathematical conditions, is not subject to falsification, and is unattainable.

For the first time, the term bitcoin is mentioned in an article written by a man or a group with the nickname Satoshi Nakamoto describing the BitCoin system. The bits can be exchanged via a computer or smartphone at local and international level without a financial intermediary institution.

In commerce, one bitcoin is divided into million smaller units called Satoshi. Bitcoin is not run like the typical currencies - it has no central bank or central organization.

Instead, it relies on the Internet-based affiliate network. Money supply is automated and is provided to servers or so-called "Bitcoin Diggers or Miners" that confirm the battle-related transactions by adding them to a decentralized and archived transaction log approximately every 10 minutes.

The transaction log is authenticated by end users through digital signatures similar to username and password and is increased by calculations of different difficulty that are performed by special servers called bitcoin diggers or miners.