A Bitcoin or Bitcoin(s) – is a decentralized digital currency based on the open source protocol created by a pseudonymous developer named Satoshi Nakamoto. It is subdivided into 100-million smaller units called Satoshis.
Internationally, bitcoins can be exchanged by personal computer directly through a wallet file or a website. They can also be exchanged through physical banknotes and coins.
Unlike most currencies, bitcoin does not rely on a central issuer, like a bank or government. Bitcoin uses a transaction log across a peer-to-peer computer network to record transactions, verify them and prevent double spending. The verification process awards effective bitcoin nodes or “bitcoin miners” with a limited release of bitcoins and transaction fees (if any). This process requires intense computing power, electricity and significant investment as it solves hashes through bruteforce to verify transactions and add them to the network’s transaction log.
As of 2013, bitcoin is the most widely used alternative currency: All bitcoins converted at the current market price would be worth over 100 million US dollars.