Bitcoin is also a peer-to-peer online payment system and a virtual pricing tool, which is called digital currency by some people. In 2009, it was first introduced as open source software by a developer under the pseudonym of Satoshi Nakamoto. Because it uses cryptography to control the production and transfer of money, Bitcoin is also considered as a cryptocurrency. In general, capitalized "bitcoin" refers to the technology and network it uses, while lowercase "bitcoin" refers to the currency itself.
Bitcoin is produced through a process called "mining". Participants get bitcoin as a handling fee, or get new output by processing transaction verification and records. Users use personal computers, mobile devices or e-wallet software on the network to trade Bitcoin. Bitcoin can be obtained by mining, and it can also be used to exchange goods, services and other currencies.
The concept of Bitcoin was put forward by Satoshi Nakamoto (a pseudonym) in 2008. Subsequently, based on the concept of open peer-to-peer and consensus initiative, he developed a self-improvement free bitcoin application system by combining cryptography, peer-to-peer network technology and open source software. On June 3, 2009, Bitcoin came out. Through the unremitting efforts of Bitcoin community members, its application system has been continuously improved, which has led to the rapid increase of individuals, organizations and enterprises recognized, used and participated in the world. At the same time, more and more countries and their authoritative organizations attach importance to it, making it a new financial ecosystem that adapts to the Internet era and is independent of the traditional financial system.
Different from the authoritative currency, the operating mechanism of Bitcoin does not depend on the support or credit guarantee of the central bank, government and enterprises, but on the network protocol reached by the seed file in the peer-to-peer network. The decentralized and self-improving monetary system theoretically ensures that no one, institution or government can control the total amount of bitcoin or make counterfeit money. The total amount of money gradually increased according to the designed predetermined rate, and the growth rate gradually slowed down, and finally reached the limit of 210 million in 2 140 years. The anti-counterfeiting, anti-inflation and security of bitcoin application system are not maintained by the state, but rely on peer-to-peer network technology and the consensus and active cooperation of participants.