How does Bitcoin work?

Bitcoin is a digital currency, meaning it exists only as a record on a distributed network of computers. It is decentralized, meaning it is not controlled by any government or central bank. Instead, it is regulated by algorithms and cryptography. To use Bitcoin, users must first acquire a digital wallet, which stores their Bitcoin and allows them to send and receive funds. When a user sends Bitcoin, it is broadcast to the Bitcoin blockchain, which is a public ledger that records all transactions. This transaction is then verified by miners, who use powerful computers to solve complex cryptographic puzzles. If a miner is successful, they are rewarded with newly created Bitcoin.