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A type of digital currency, Bitcoin is electronically held and created. Nobody controls it. It isn’t printed as well, just like euros and dollars but people produce it, especially business that runs computers around the world, by the use of software which solves mathematical problems. It is known to be the pioneer of a thriving money category called cryptocurrency. How does it differ with other normal currencies? Bitcoin can be spent to electronically buy things which makes it similar with conventional euros, dollars or yen that are traded digitally as well. However, Bitcoin is decentralized. It is the most significant characteristic making it unique to conventional money. Not any single institution can able to control network of bitcoin. People can be at ease since it primarily means that a big bank can’t be able to control their money. Who created it? Satoshi Nakamoto who is a software developer proposed the idea of Bitcoin, which is system of an electronic payment formed on mathematical proof. This idea was to generate an independent currency to any central authority which is more or less electronically transferable instantly and of course with the cheapest transaction fees. Who prints it? Nobody can. This form of money is not printed physically by any central bank, it is not accountable to the population, and it also is composing its own rules. The banks can easily generate money to cover up the debt of the nation making their currency no values. So, bitcoin is digitally created by a group of people where anyone is welcomed to join. It is ‘mined” in a network that is distributed using computational power. The network as well deals with transactions made with this digital currency, thus effectively making bitcoin as their own payment network. So it’s not possible to churn out infinite bitcoins? The answer is yes. The rules which make the network of bitcoin work known as the bitcoin protocol, declare that only twenty-one million bitcoins will ever be made by miners. But, the coins can be split up into smaller parts with the smallest amount of one hundred-millionth in each bitcoin which is named as “Satoshi” after the name of bitcoin’s founder. Bitcoin is based on what? A typical currency has been mainly based on silver or gold. Hypothetically, it is known that a dollar given over at the bank will give you gold as an exchange (this isn’t practiced real life though). However, bitcoin is not gold based but based on mathematics. In order for bitcoins to be produced, people around the world are employing software programs which follow a mathematical formula. This formula is available freely so anyone can just check it. The software is an open source which means that anybody can check it to see if does what it needs to do. What are Bitcoin’s characteristics? Bitcoin has a number of great characteristics that makes it unique from the usual government-back currencies. 1. It is decentralized The network of bitcoin is not regulated by just one central authority. Everything is one part of the network, from the bitcoin miner machine and a machine that processes transactions making them work together. This theoretically means that no central authority can fiddle with the monetary policy which can cause a mishap or someone can’t just simply command to take away people’s Bitcoin from them, as what the Central European Bank did to Cyprus during the early 2013. Also, if o...