As the name might suggest “Bit-Coin” is a form of digital-currency which was the brain child of a software developer named, Satoshi Nakamoto, and was introduced in the October 2008. It was for the first time that this category of money became popular among people and increasing among businesses which had a digital footprint. It formed a kind of digital asset and payment system among individuals and businesses. This form of money exchange is also termed “Cryptocurrency”.
Though Bitcoin can be used to buy things electronically, much like the present currencies like dollars, pound or yen which are also traded electronically, what makes Bitcoin different from the currencies used globally is, that it is decentralised. In other words, no single institute controls Bitcoin unlike the other currencies. In fact, the idea of the proposed Bitcoin network was to produce a currency independent of any central authority and transferrable electronically based on a mathematical proof and almost instantaneously. The Bitcoin network has very low transaction fees which was another advantage.
Another major distinguishing feature of the BitCoin network was that it as not physically printed by any central bank which could otherwise print out more money for national interests thus devaluating their currency. Instead, Bitcoin was created digitally, by a community of people that any one can join and are “minted” using the computational power of a distributed network.
So unlike other currencies that are based on gold and silver reserves of a country, the BitCoin is based on a mathematical formula computed by a software that is open source.
Bitcoin provided extreme transparency as details of every transaction that ever happened on a network was recorded, somewhat in the form of a general ledger, called the blockchain.