Bitcoin is a worldwide cryptocurrency and digital payment system called the first decentralized digital currency, since the system works without a central repository or single administrator.
A payment system is any system used to settle financial transactions through the transfer of monetary value, and includes the institutions, instruments, people, rules, procedures, standards, and technologies that make such an exchange possible.
Digital currency is a type of currency that is non-physical, of which no banknotes and coins exist, and which can only be transmitted via electronic means, typically allowing for instantaneous transactions and borderless transfer of ownership.
A currency in the most specific use of the word refers to money in any form when in actual use or circulation as a medium of exchange, especially circulating banknotes and coins.
Bitcoin: How Cryptocurrencies Work by SciShow
It was invented by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto and released as open-source software in 2009.
Open-source software is computer software with its source code made available with a license in which the copyright holder provides the rights to study, change, and distribute the software to anyone and for any purpose.
Satoshi Nakamoto is the name used by the unknown person or persons who designed bitcoin and created its original reference implementation.
How I make money mining bitcoins by CNNMoney
The system is peer-to-peer, and transactions take place between users directly, without an intermediary.
Peer-to-peer computing or networking is a distributed application architecture that partitions tasks or workloads between peers.
These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain.
A ledger is the principal book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account.
A distributed ledger is a consensus of replicated, shared, and synchronized digital data geographically spread across multiple sites, countries, or institutions.
Besides being created as a reward for mining, bitcoin can be exchanged for other currencies, products, and services.
As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
Bitcoin can also be held as an investment.
According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.
On 1 August 2017 bitcoin split into two derivative digital currencies, the classic bitcoin and the Bitcoin Cash.