What is Bitcoin, and why do you need to know about it?

Bitcoin is a virtual currency (cryptocurrency) that is completely digital. It is an online version of cash. The physical coins you see in photographs with the letter ‘B’ in there are just novelty items that are not worth anything.

Each bitcoin is a computer file stored in a digital wallet application. Usually, this is accessible through your phone or computer. Each of the transactions you make it recorded in a public ledger called the blockchain.

The records make it possible for anyone to trace the history of bitcoin used and make sure that there is no double-spending. People get bitcoins by going through the process we described as mining, buying them with real money or selling things and having people pay you with bitcoin.