- Aug 29, 2012
Bitcoin (BTC) is an online commodity that is based on an open-source, peer-to-peer encryption protocol first described in 2009 by a pseudonymous developer (or developers) Satoshi Nakamoto. Bitcoin creation and transfer is accomplished on an Internet-based network and is not managed by any central authority. The creation of new bitcoins is automated and may be accomplished by servers, called bitcoin miners that confirm bitcoin creation by adding codes to a decentralized, log which is updated and archived periodically. Each bitcoin is subdivided into 100 million smaller units called satoshis, defined by eight decimal places.