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WHAT IS BITCOIN?

Bitcoin is a completely decentralized form of

virtual currency that enables direct payment

over the Internet by skipping the middleman,

which is usually a bank or credit card company.

Transactions are safe due to cryptography used

to prevent double spending, counterfeiting,

or theft. Users can use bitcoins for a variety of

real transactions.

HOW IT WORKS

1

Before a bitcoin can be purchased, a user must install a virtual 'wallet' onto a personal

computer or mobile device. The wallet is similar to personal finance software and keeps track of bitcoin balance and transactions.

2

The user then pays for bitcoins, either through

a credit card, bank account or anonymously

with cash. Bitcoins are transferred directly into

a bitcoin account, and the user can send and

receive payments directly to a buyer or seller.

3

Similar to trading stocks, a buyer can place an

order for a bitcoin through an exchange

program once the funds are available. Bitcoins

can also be purchased from third parties.

4

Users pay far fewer associated fees by skipping

the middleman in each transaction, and they

can also remain anonymous.

THE GLOBE AND MAIL, SOURCES: BLOOMBERG; BITCOIN.ORG;

BLOCKCHAIN.INFO; MIT TECHNOLOGY REVIEW;

THE WASHINGTON POST; IEEE SPECTRUM

WHAT IS BITCOIN?

Bitcoin is a completely decentralized form of virtual

currency that enables direct payment over the Internet

by skipping the middleman, which is usually a bank

or credit card company. Transactions are safe due

to cryptography used to prevent double spending,

counterfeiting, or theft. Users can use bitcoins for

a variety of real transactions.

HOW IT WORKS

1

Before a bitcoin can be purchased, a user must install a

virtual 'wallet' onto a personal computer or mobile device.

The wallet is similar to personal finance software and

keeps track of bitcoin balance and transactions.

2

The user then pays for bitcoins, either through a credit

card, bank account or anonymously with cash. Bitcoins

are transferred directly into a bitcoin account, and the

user can send and receive payments directly to a buyer

or seller.

3

Similar to trading stocks, a buyer can place an order for

a bitcoin through an exchange program once the funds

are available. Bitcoins can also be purchased from third

parties.

4

Users pay far fewer associated fees by skipping the

middleman in each transaction, and they can also

remain anonymous.

THE GLOBE AND MAIL, SOURCES: BLOOMBERG; BITCOIN.ORG;

BLOCKCHAIN.INFO; MIT TECHNOLOGY REVIEW; THE WASHINGTON POST;

IEEE SPECTRUM

WHAT IS BITCOIN?

Bitcoin is a completely decentralized form of virtual currency that enables direct

payment over the Internet by skipping the middleman, which is usually a bank

or credit card company. Transactions are safe due to cryptography used to prevent

double spending, counterfeiting, or theft. Users can use bitcoins for a variety

of real transactions.

HOW IT WORKS

1

Before a bitcoin can be purchased, a user must install a virtual 'wallet' onto a personal

computer or mobile device. The wallet is similar to personal finance software and keeps

track of bitcoin balance and transactions.

2

The user then pays for bitcoins, either through a credit card, bank account or anony

mously with cash. Bitcoins are transferred directly into a bitcoin account, and the user

can send and receive payments directly to a buyer or seller.

3

Similar to trading stocks, a buyer can place an order for a bitcoin through an exchange

program once the funds are available. Bitcoins can also be purchased from third

parties.

4

Users pay far fewer associated fees by skipping the middleman in each transaction,

and they can also remain anonymous.

THE GLOBE AND MAIL, SOURCES: BLOOMBERG; BITCOIN.ORG; BLOCKCHAIN.INFO;

MIT TECHNOLOGY REVIEW; THE WASHINGTON POST; IEEE SPECTRUM

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