What is Bitcoin?

Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.

  • Decentralisation. Bitcoin does not rely on any central servers or single points of failure. No individual, group or corporation owns or controls the Bitcoin network which is composed of hundreds of thousands of individuals running software and is constantly verifying and confirming transactions that are securely logged in a public world wide ledger that contains every transaction ever processed. This network also regulates the 21 million total XBT limit to be created. No individual or organization can control or manipulate the Bitcoin protocol because it is cryptographically secure.
  • Security. Bitcoin is based on encryption and a public consensus-based ledger which prevents the duplication, fraud or double-spending of any bitcoins. Bitcoin users are in full control of their transactions so it is impossible for merchants to force unwanted or unnoticed charges.
  • Low Fees. Anyone can send bitcoins to anyone, anywhere with one of the lowest transactions costs among major payment systems, using software installed on their computer or phone. These low transactions costs make doing business with bitcoins more affordable and convenient. Rather than a bank or payment provider setting an expensive fee, you choose how much you pay to the network yourself. This market for fees keeps them low and friendly to users
  • Divisibility. Bitcoins divide easily into millionths of a unit. You have control and flexibility in managing your bitcoin operations. Whether you want to buy, send or receive 100 or 0.0005 bitcoins.
  • Recognition. Because of these advantages, Bitcoin is becoming widely used across the world by businesses, consumers and investors. The currency is accepted by Dell, Microsoft, Rakuten, Etsy and many, many others, maybe even your local pub! Bitcoin has gained recognition by Her Majesty's Revenues and Customs and it is considered VAT exempt for the purchasing and selling of bitcoins. Corporate tax and capital gains are treated the same way any foreign currency would be treated for accounting purposes. These clear guidelines have given many in the UK and European Union a great deal of confidence in the everyday usage and ownership of bitcoins.

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