BIT by bit

The origin

• Bitcoin is the most popular cryptocurrency that was created by a mysterious person or a group of persons known as Satoshi Nakamoto. 
• In 2008, he had circulated the original software in a white paper through a mailing list and thus created a consensus network that enabled the bitcoin payment system.
• Bitcoin is the first decentralised peer-to-peer payment network that is powered by its users with no central authority, bank or intermediaries. 

Satoshi Nakamoto 

• Apparently, Satoshi Nakamoto mined the first coins in 2009. It is estimated that his account contains about 980,000 bitcoins, worth about $15.2 billion.
• Satoshi left the project in late 2010, never to be found again.

Who owns it

• Bitcoin is an open source technology and no one owns the technology or the system.

How it works

• Works like an app where one opens an account and pays money in fiat currency to purchase bitcoins, which can be kept in a password-protected digital wallet. 
• The bitcoin network, however, records ever transaction in a public ledger called the 'blockchain'.
• Bitcoin is not anonymous and taxmen can trace transactions with the help of technical experts.

Who can mine bitcoins

• A technologically proficient and mathematical genius can mine bitcoins with the help of sophisticated computers. 
• Miners use special software and hardware to solve mathematical problems and are issued some bitcoins in lieu of their services.
• Miners thus help in keeping the cryptocurrency network or blockchains stable and secure. They are paid in bitcoins to maintain the system. 

Legitimacy 

• Bitcoin has not been accepted as a legal tender by any country and it is largely unregulated. 
• Some countries such as the US, Canada and Japan are having a softer approach. India has not taken any stand on it.
• Countries like South Korea, Bolivia, Ecuador, Kyrgyzstan and Bangladesh have banned bitcoins.
• Bitcoins, seized in anti-corruption operations in Bulgaria, are worth $3.6 billion; enough to retire a fifth of the country's $16.5 billion debt.
• Ecommerce portals like Reddit, Wordpress, Overstock and Amazon accept bitcoins.
• Traded at specific exchanges like Bitstamp, Coinbase, Bitfinex and Cryptsy.
• ATMs exchanging bitcoins for dollars are located in cities like San Diego and Vancouver.