Bitcoin[note 5] is an internet payment system devised by Satoshi Nakamoto,[note 6] published in 2008[12] and introduced as open-source software in 2009.[13] The system is peer to peer; users can transact directly without desiring an intermediary.[14]:4 Trades are checked by network nodes and recorded in a public distributed ledger called the block chain.[15] The ledger uses its own unit of account, also called bitcoin,[note 7] which is the money of the network.[19] The system works with no central repository or single administrator, which has directed the US Treasury to categorize it as a decentralized virtual currency.[1] Bitcoin is frequently called the first cryptocurrency,[20] although prior propositions existed.[note 8] Bitcoin is more correctly referred to as the very first decentralized digital money.[14][23] It is the greatest of its sort when it comes to entire market value.[24]
Bitcoins are created as a benefit for payment processing work in which users' computing power is offered by they record and to verify payments into the public ledger. This activity is called mining and is rewarded by transaction fees and recently created bitcoins.[14] Besides mining, bitcoins could be obtained in exchange for fiat money, goods, and services.[25] Users can send and receive bitcoins for an optional trade fee.[26]
The European Banking Authority[29] along with other sources[14]:11 have warned that bitcoin users aren't shielded chargebacks or by refund rights.
Using bitcoin by criminals has attracted the attention of fiscal regulators,[30] legislative bodies,[31] law enforcement,[32] and media.[33] They listed money laundering, financing of illegal actions, theft, fraud, tax evasion, and use in black markets as possible. As of 2013, the unlawful activities centered around theft and black markets. Officials in countries like America additionally understood that legitimate financial services can be provided by bitcoin to customers.
Bitcoins are created as a benefit for payment processing work in which users' computing power is offered by they record and to verify payments into the public ledger. This activity is called mining and is rewarded by transaction fees and recently created bitcoins.[14] Besides mining, bitcoins could be obtained in exchange for fiat money, goods, and services.[25] Users can send and receive bitcoins for an optional trade fee.[26]
The European Banking Authority[29] along with other sources[14]:11 have warned that bitcoin users aren't shielded chargebacks or by refund rights.
Using bitcoin by criminals has attracted the attention of fiscal regulators,[30] legislative bodies,[31] law enforcement,[32] and media.[33] They listed money laundering, financing of illegal actions, theft, fraud, tax evasion, and use in black markets as possible. As of 2013, the unlawful activities centered around theft and black markets. Officials in countries like America additionally understood that legitimate financial services can be provided by bitcoin to customers.