Bitcoin
Is a global currency (symbol BTC)
Ve ry different from fiat currencies
Around since January of 2009
Not issued by any entity
Peer-to-peer / decentralized
Trading over the internet
Protocol is open source
Somewhat anonymous
Protected by strong encryption (cryptoCurrency)
If you know the secret “account number” the coins are yours
People who transmit transactions are called miners
The maximum number of Bitcoins will be about 21 million
A bitcoin is a unit of measurement
Not completely illegal yet
Not a scam or get-rich-quick scheme
May change money forever
The basic mechanism
Transactions are published to the Bitcoin P2P network
Miners (computers) compete to solve a proof-of-work problem on average every 10 minutes
The winning miner publishes a summary of recent transactions in a block
Miners are rewarded with new coins for having published a valid block
Blocks are linked to previous blocks, creating a block chain
The value of every account is evident on the blockchain
Everyone is expected to know the whole blockchain
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