What is Bitcoin?

Bitcoin is a digital currency not issued or backed by a central bank or sovereign state. Bitcoin is stored on a massive open-source network of computers located around the world. “Miner” create Bitcoin by solving complex mathematical algorithms. The first to solve that algorithm is rewarded 25 Bitcoins. There are only a finite number of Bitcoins (21 million) available. Bitcoin is traded like any other commodity and has an exchange rate that is constantly moving up and down. In Bitcoin’s short history, it has seen periods of extreme volatility in pricing. Acquired Bitcoins can be stored in a digital “wallet.”

This is a basic explanation of Bitcoin and Provident recommends you conduct supplemental research of your own to gain a better understanding.

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