Bitcoin is a cryptocurrency and worldwide payment system.3 It is the first decentralized digital currency – the system works without a central bank or single administrator.1 The network is peer-to-peer and transactions take place between users directly through the use of cryptography, without an intermediary.4 These transactions are verified by network nodes and recorded in an immutable public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.
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. Research produced by Cambridge University estimates that in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.
