What is Bitcoin? Key crypto terms and what they mean

Bitcoin is a digital currency that was created in 2009 by an unknown person using the name Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! Bitcoin can be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. But much of the hype is about getting rich by trading it. The price of bitcoin skyrocketed into the thousands in 2017.

Key Crypto Terms:

1. Blockchain

A blockchain is a distributed ledger that records transactions across multiple computers. It is the technology that underpins Bitcoin and other cryptocurrencies.

2. Cryptocurrency

A digital currency that uses cryptography for security and operates independently of a central bank. Bitcoin is the most well-known cryptocurrency, but there are thousands of others in existence.

3. Wallet

A digital wallet is a software program that stores private and public keys and interacts with various blockchain to enable users to send and receive digital currency and monitor their balance.

4. Mining

Mining is the process of validating new transactions and adding them to the blockchain. Miners compete to solve complex mathematical problems and are rewarded with new coins for their efforts.

5. Private key

A private key is a sophisticated form of cryptography that allows a user to access their cryptocurrency. It acts as a password that should not be shared with anyone.

These are just a few of the key terms that are commonly used in the world of cryptocurrency. As the industry continues to evolve, new terms and technologies will likely emerge. It’s important for anyone interested in getting involved in cryptocurrency to familiarize themselves with these terms and stay informed about the latest developments.