Part of Bitcoin For Dummies Cheat Sheet

Bitcoin is an alternative type of payment system that is sometimes mentioned in the media. Is it “Internet” or “digital” money? Is it a way to conduct business outside the mainstream financial infrastructure? Is it a new way of life that could transform multiple aspects of society in the future? The answer is yes.

  • Origins: Bitcoin was created by developer Satoshi Nakamoto in 2008.

  • Purpose: Bitcoin provides a viable decentralized alternative to the current mainstream financial infrastructure.

  • Method: Bitcoin enables spending with full transparency through a publicly available ledger known as the blockchain.

  • Security: A bitcoin transaction involves both a public key, which is generally known to everyone, and a private key known only to the bitcoin user. No coins can be spent without knowing the private key.