What is Bitcoin?

Bitcoin is a cryptocurrency and a payment system, first proposed by an anonymous person or group of people under the name Satoshi Nakamoto in 2008. Nakamoto implemented the system in 2009 as a way to remove central control from currency issuance and transactions.

Bitcoin is created through a process called "mining." Miners are rewarded with bitcoins for verifying and committing transactions to the blockchain. Bitcoin can be transferred directly from person to person, without the need for a third party such as a bank or payment processor.

Bitcoins are stored in a "digital wallet," which can be accessed on a computer or mobile device. Bitcoin payments can be made without personal information, making them popular for purchases of goods and services online.

What is Ethereum?

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ethereum was proposed in late 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer.

Ethereum Foundation, a Swiss non-profit, oversees the development of Ethereum. Ethereum is unique in that there are a finite number of them: 21 million. Ethereum is also traded on various exchanges.

What is a Cryptocurrency?

A cryptocurrency is a digital or virtual currency that uses cryptography to secure its transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control.

Bitcoin, Ethereum, and other cryptocurrencies are popular because they are secure and can be used without having to reveal personal information. Cryptocurrencies are also popular because they can be traded on digital exchanges for other cryptocurrencies or for traditional currency.