$BTC
What is Bitcoin?
Bitcoin is a decentralized digital asset. It is a new type of asset that joins the ranks of traditional assets such as cash, gold, and real estate.
What is Bitcoin?
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Table of Contents
What makes Bitcoin different?
What gives Bitcoin value?
How does Bitcoin work?
Who controls Bitcoin?
Why does Bitcoin exist? Is it needed?
Is Bitcoin legal?
Can bitcoin be stolen?
Could there be a bug in the Bitcoin software?
Can the Bitcoin network be shut down or hacked?
What makes Bitcoin different?
Bitcoin is a decentralized digital asset. Let’s break that down.
Bitcoin is a decentralized digital asset
Intermediaries
an account.
Exchanging cash directly doesn’t require intermediaries, but the creation of cash is solely dependent on a trusted third party, such as a central bank. The creation of new Bitcoin, by contrast, occurs programmatically and is limited to 21 million units. More on this later.
Money supply
What gives Bitcoin value?
The value of Bitcoin comes from two connected aspects that support and reinforce each other:
Its features
Its network effects
Bitcoin's features and network effects
When a network grows, its utility grows also. The classic example is a telephone network. When there are only a few people on the network, it’s hardly valuable. But when you can call anyone, the network is more valuable. The same is true of money networks.
Network effects
Historically, people have used everything from seashells to bottle caps as money, but arguably the most enduring form of money is gold. Why?