What is a Cryptocurrency?
It is a digital currency which is created and managed through the use of advanced encryption techniques, this is known as cryptography.
What is Cryptography?
Cryptography is a method of storing and transmitting data in a particular way in which only those for which it is intended are the only ones that can read and process them.
What is Bitcoin?
Bitcoin (abbreviated BTC) is a decentralized digital currency that allows instant payments to any person anywhere in the world. Bitcoin uses peer-to-peer technology (from person to person) to operate without a central authority: the network performs transaction management and the issuance of money collectively. Satoshi Nakamoto’s original Bitcoin software was released under the license MIT. Most customer software, derived or “from scratch”, also uses open source licenses.
Bitcoin is the first successful implementation of a distributed cryptographic currency, described in part in 1998 by Wei Dai on the cypherpunks mailing list. Based on the idea that money is any object, or any type of registration, accepted as payment for goods and services and payment of debts in a specific country or socioeconomic context, Bitcoin is designed around the idea of using cryptography to control the creation and transfer of money, instead of depending on the central authorities.
Bitcoin has all the desirable properties of what a good money would be. They are portable, durable, divisible, recognizable, fungible, scarce and difficult to counterfeit.