Bitcoin or BTC is a cryptocurrency created in 2009 by an unknown person using the name Satoshi Nakamoto. The word bitcoin first occurred and was defined in the white paper that was published on 31 October 2008. It is a compound of the words bit and coin.The white paper frequently uses the shorter coin.
Bitcoin was the first cryptocurrency to exist. There are other that follows, which are known as alternative coins, or AltCoins, which include Person, Litecoin, and Etherium, among others.
BTC can be stored offline on a local hardware by employing the process called cold storage. Through this, the digital currency is secured from the possibility of being taken by others. On the contrary, if it is stored online, the risk of it being stolen is high.
Here’s a video that explains what a bitcoin is:
The Rise of Bitcoin in the Philippines
Bitcoin was not known to many Filipinos until 2016. Its popularity could be attributed to the Facebook Group called Bitcoin PH. Platforms offering BTC exchanges then started to rise. Recently, the volume of bitcoins transactions increases more than four times per month average in 2015. This opted the government to regulate the trade.
How Bitcoins Work
Bitcoins are essentially made to be “self-contained” for their value. There is no need for a bank transaction to transfer and store the money. It works similarly to a gold: they possess value, can be kept, and traded. It is used also to buy online goods and services from the stores that accept the currency.
The digital currency can be stored in a secured wallet, which may be on your local drive, smartphone, tablet, or cloud. Trading can be made using BTC exchanges/trading websites. Each of these websites provides detailed instructions on how you can buy, sell, or exchange bitcoins.
Here is the simplest analogy that explains transactions, anonymity, and coin production.