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8itcoins
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.
How does Bitcoin work?.
Bitcoin is often called the first cryptocurrency, although prior systems existed. Bitcoin is more correctly described as the first decentralized digital currency. Bitcoin is the largest of its kind in terms of total market value.
Bitcoins are created by a process called mining. They are awarded to the miners who solve a cryptographic problem. This problem can be solved by anyone with a computer that can run the bitcoin software. When a problem is solved, a new block is added to the blockchain, and bitcoins are awarded to the miner.
Mining is a competitive process. Miners are rewarded based on their share of work done. The more computing power you contribute, the greater your share of the reward.
Bitcoins are divisible to eight decimal places. This means that you can buy a fraction of a bitcoin.
What are bitcoins used for?.
Bitcoins can be used for a variety of purposes. They can be exchanged for goods and services, or for other currencies.
Bitcoins can also be used to purchase goods and services online. Some merchants accept bitcoin as payment, while others allow you to use bitcoin to purchase gift cards.
Bitcoins can also be used to invest in other digital currencies.
Is Bitcoin legal?.
Yes, bitcoin is legal.
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