Bitcoin, Ethereum, Cryptocurrency, and Finance

Since Bitcoin's inception in 2009, the cryptocurrency has seen a meteoric rise in value, with a single Bitcoin worth thousands of U.S. dollars. The underlying technology, blockchain, has also garnered significant attention for its potential to revolutionize the world of finance.

What is Bitcoin?

Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.

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 is unique in that it allows developers to create smart contracts without any programming experience.

What is Blockchain?

Blockchain is a distributed database that maintains a continuously-growing list of data records hardened against tampering and revision. It is transparent, as all data is stored on a public ledger, and allows for companies to securely transact with each other without the need for a third party.

What is Cryptocurrency?

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.

What is Bitcoin Mining?

Bitcoin mining is the process of verifying and adding transactions to the blockchain. Miners are rewarded with transaction fees and new Bitcoins for their efforts. As of February 2015, the total value of all Bitcoins in circulation was over $3.5 billion.

What is a Bitcoin Wallet?

A Bitcoin wallet is a digital wallet that stores the user's public and private keys and allows them to send and receive Bitcoins. Bitcoin wallets are software programs that allow the user to manage their Bitcoin transactions.

What is a Bitcoin Exchange?

A Bitcoin exchange is a digital marketplace where users can buy and sell Bitcoins using different currencies. Bitcoin exchanges are used to buy and sell Bitcoins, as well as to convert other currencies into Bitcoins.

What is a Bitcoin Transaction?

A Bitcoin transaction is a digital transfer of value between Bitcoin wallets that gets included in the blockchain. Bitcoin transactions are irreversible and secure.