What is Bitcoin?

Cryptography expert Satoshi Nakamoto[1] has created the first completely decentralized, anonymous, electronic currency, called Bitcoin. Bitcoins are divisible digital tokens that can be exchanged across the internet or stored on disk. Bitcoin differs greatly from traditional government issued fiat currency and regulated banking in several important aspects:

– Bitcoins have no central issuer, whereas fiat currency is issued at will by a central bank. Currently, Bitcoins are slowly being issued in a decentralized manner, but eventually new issuance will forever halt.

– Bitcoin transactions are private and anonymous, whereas current law allows only licensed financial institutions to conduct wire transactions within the banking system. With Bitcoin, no third party can spy on overall transactions.

– Bitcoin ownership is safe, so confiscation is nearly impossible.