What is Bitcoin?

Bitcoin is digital money used for secure and instant transfer of value anywhere globally. It is not controlled or issued by any bank or government - instead, it is an open network managed by its users. Much like how email improved communication by making it fast and cheap, bitcoin is an improvement on existing payment methods that were not designed for the internet era.

Is Bitcoin safe?

Bitcoin’s core protocol is viewable by anyone, has been vetted by thousands of security researchers worldwide, and has proven to be robust and reliable after intense scrutiny. Using bitcoin is similar to using other private applications on the internet, such as email or online banking. Like these other web services, you must access your bitcoin with a password to ensure only you have access to your money.

Is it tied to the value of the dollar?

The value of a bitcoin is not tied or pegged to the value of any other currency. Like stocks or property, bitcoin’s value is determined by buying and selling in the open market. A bitcoin’s price changes in real-time based on the number of people who want to buy or sell it at a given moment.

Why does it change value?

Bitcoin is traded for dollars, euros, yen, and other currencies 24 hours a day. Depending on the demand for buying or selling bitcoin, the price can fluctuate from day today. This is similar to how the value of a stock or property can go up or down based on supply and demand. Bitcoin’s value can be volatile compared to traditional currencies such as the US dollar because it is still an emerging technology.

Is it similar to a credit card or PayPal?

Unlike credit card networks like Visa and payment processors like Paypal, bitcoin is not owned by an individual or company. Bitcoin is the world’s first completely open payment network which anyone with an internet connection can participate in. Bitcoin was designed to be used on the internet and doesn’t depend on banks or private companies to process transactions.

Why would I use bitcoin?

Bitcoin allows you to instantly send any amount of money to anyone without needing a bank. It will enable you to access your money without needing an ATM or credit card - bitcoin gives you back control over your money. You can pay friends back for dinner, buy your next computer, and donate to charity, all using bitcoin.