What is Bitcoin?

What is Bitcoin?

Last updated: October 22, 2017 

The term “Bitcoin” has crept into our lexicon. With greater and greater frequency, we encounter stories and information about it. But what is Bitcoin? Bitcoin is an innovative payment network and a new kind of digital money created in 2009. Creation of Bitcoin is attributed to Satoshi Nakamoto, an alias for what may have been a consortium of creators versus an individual.  Bitcoin is the original implementation of a concept known as crypto-currency. It uses peer-to-peer technology to operate with no central authority or banks.  The collective network carries out the process of managing transactions and issuing bitcoins.

Bitcoin is open-source, which means its design is public. Nobody owns or controls Bitcoin, and everyone can take part.  Any developer can review the Bitcoin code, and create their own custom version of Bitcoin software.  Other digital currencies have been created using the Bitcoin code, and they are often generally referred to as altcoins.  Through many of its unique properties, Bitcoin allows exciting uses not covered by any previous payment system.

Businesses can accept Bitcoin as a payment method. In doing so, businesses may reduce the cost of receiving online payments by reducing credit card and merchant account fees. Businesses could save money by reducing instances of fraud and by eliminating credit card chargeback fees. Bitcoin merchant accounts are available to streamline the acceptance of Bitcoin by businesses. Popular entities that offer Bitcoin merchant services are Coinbase and BitPay. Customers pay businesses in Bitcoin. Bitcoin is then converted to fiat currency, and the currency is deposited into a linked business bank account.

Offering Bitcoin as a payment method to your customers may increase revenue. Businesses that accept Bitcoin are connected to the growing Bitcoin economy, and the Bitcoin community that supports it. As Bitcoin use grows, the Bitcoin community grows. Businesses that accept Bitcoin are able to tap into and participate in the Bitcoin community.

To learn more about Bitcoin, please visit Bitcoin.org and watch the video below:

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