What is bitcoin?

[Parishy]

What is bitcoin?

It's probably best to begin by defining exactly what a bitcoin is. Bitcoin is a type of cryptocurrency, defined as "a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank."

In theory, it could enable direct, anonymous transactions between parties with virtually no transaction costs. It can do this because it is a virtual currency that involves no middlemen such as banks, payment processors, or credit card networks. It accomplishes all this using blockchain technology.