The facts about bitcoin

What is bitcoin?

Bitcoin is an open source peer-to-peer payment network and digital currency introduced in 2009 by a programmer, or group of programmers, called Satoshi Nakamoto.

Transactions are verified by a decentralized network of computers all over the world. Specialized computers use a proof-of-work system to prevent people from copying and spending the same bitcoin multiple times, a problem for digital currencies known as “double-spending.”

How can you get bitcoins?

People use operating computers, known as “miners,” to collect bitcoins through special client ends. The system produces 25 bitcoins every 10 minutes globally. The popularity of bitcoins and surging prices have made it more difficult for people with standard computers to obtain the currency.

Who uses bitcoins?

Bitcoins are increasingly used as payment for legitimate products and services, and merchants have an incentive to accept the currency because transaction fees are lower than the 2 to 3 percent typically imposed by credit-card processors. Notable vendors include OkCupid, Reddit and WordPress for online services.

Speculators have been attracted to bitcoin, fueling volatility and price swings. The top bitcoin trading platforms include BTC China and MtGox.