What is Bitcoin (BTC)?
Bitcoin is a digital asset that came out in 2009. It uses a peer-to-peer network to help transfer value without the intervention of banks or central institutions.
The creation of Bitcoin
Bitcoin is generated by verifying transactions on the Bitcoin network through the mining process. People who perform this verification are called miners.
When miners successfully verify a set of transactions, their work can earn 12.5 bitcoins, as well as transaction fees for each transaction. Miners use a set of password rules to keep the network stable, safe and confidential.
Bitcoin transactions are recorded and verified on a digital public ledger called a blockchain.
The number of bitcoins that have been mined is approximately 17 million. By 2140, there are an estimated 21 million bitcoins, which is the highest number allowed by the system.
Bitcoin is generated by verifying transactions on the Bitcoin network through the mining process. People who perform this verification are called miners.
When miners successfully verify a set of transactions, their work can earn 12.5 bitcoins, as well as transaction fees for each transaction. Miners use a set of password rules to keep the network stable, safe and confidential.
Bitcoin transactions are recorded and verified on a digital public ledger called a blockchain.
The number of bitcoins that have been mined is approximately 17 million. By 2140, there are an estimated 21 million bitcoins, which is the highest number allowed by the system.
Use Bitcoin
You can buy goods or services with Bitcoin. At present, more and more merchants accept Bitcoin, and its commercial use continues to expand.
Bitcoin can be used as a currency for international remittances or investments. It can be held or used as a trading tool. Bitcoin can be bought and sold with fiat currencies such as U.S. dollars. If it is denominated in different currencies, the premium of Bitcoin is different, and there are opportunities for arbitrage.
Bitcoin is the most liquid of all cryptocurrencies, and it is still being adopted by individuals and institutions.
Content from CME Group
**This article is not investment advice**
