What are bitcoins? What is the definition of bitcoins?
Questions that are often asked, well here is my simple definition.
- Bitcoin is a digital currency that was created in 2009.
- There are no physical Bitcoins, as it is a digital currency your 'balance' is sorted within a digital domain (smartphone or internet for example) - although bitcoins are kept on a public ledger that is automatically updated when Bitcoins are found or used in transactions.
- Unlike traditional currency there is no central bank, and no banking infrastructure so transaction fees are generally lower than real currencies.
- New Bitcoins are found by 'miners' - companies and individuals who find these 'coins' as they are autimatically released by the Bitcoin network.