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Bitcoin is a payment system introduced as open-source software in 2009 by programmer Satoshi Nakamoto The payments in the system are recorded in a public tally using its own unit of account, which is also called bitcoin. Payments operat epeer-to-peer without a core database or single administrator.
which has guided the US Treasury to call bitcoin a decentralized virtual currency. Although its standing as a currency is debated, media reports often refer to bitcoin as a cryptocurrency or digital currency. Called mining, people or providers engage in this activity in exchange for transaction fees and newly created bitcoins. Besides mining, bitcoins can be obtained in exchange for fiat money, products, and services.
Users can send and receive bitcoins digitally for an optional transaction fee using wallet software on a personal computer, mobile device, or a web application. Bitcoin as a form of payment for products and services has seen increase, and merchants have an incentive to accept the digital currency because fees are lower than the 2-3% typically imposed by credit card processors.
If you want to know more then check out the full Bitcoin Wikipedia article or watch the YouTube video below.