What is bitcoin? A look at the digital currency

[Jonathan Fairfield]

What is bitcoin? A look at the digital currency

 

NEW YORK (AP) — Bitcoin is a type of digital currency that allows people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties. Its origins have long been a mystery — though an Australian man long rumored to have ties to bitcoin has come forward claiming to be its creator.

 

Who is this man, and how does this system work?

 

Here’s a brief look at bitcoin:

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HOW BITCOINS WORK

 

Bitcoin is a digital currency that is not tied to a bank or government and allows users to spend money anonymously. The coins are created by users who “mine” them by lending computing power to verifying other users’ transactions. They receive bitcoins in exchange.

 

The coins also can be bought and sold on exchanges with U.S. dollars and other currencies. Their value has fluctuated over time. At its height in late 2013, a single bitcoin was valued above $1,100. On Monday, it was worth about $445.

 

Because the currency isn’t formally regulated, its legality is a bit fuzzy. The currency has also drawn the ire of many in law enforcement and cybersecurity because it’s difficult to trace, making it a currency of choice for hackers behind ransomware attacks. But in September, New York state regulators approved their first license for a company dealing in bitcoin.

 

Full story: http://tech.thaivisa.com/ap-explains-what-is-bitcoin-a-look-at-the-digital-currency-2/14991/