Bitcoin was created in 2009 by an anonymous person or group using the name Satoshi Nakamoto. It was the first cryptocurrency, and it introduced the idea that digital money could work without a bank, government, or middleman.
Bitcoin uses a technology called blockchain, a public ledger that records every Bitcoin transaction ever made. This ledger is maintained by thousands of computers around the world, making it extremely difficult to tamper with.
Key things to know
There will only ever be 21 million Bitcoin. Unlike dollars, which can be printed in unlimited quantities, Bitcoin has a fixed supply. This scarcity is one reason many people see it as a store of value.
Bitcoin is divisible. You don't have to buy a whole Bitcoin, you can buy a fraction, even just a few dollars' worth. The smallest unit is called a "satoshi," equal to 0.00000001 BTC.
Bitcoin's price changes constantly. The price is determined by supply and demand on exchanges around the world and can move significantly in a single day.
Bitcoin transactions are processed by "miners." When you send Bitcoin, your transaction is verified and added to the blockchain by computers competing to solve mathematical problems. This process called mining keeps the network secure. Miners charge a fee for this work, which is the network fee you see in your transactions.
How does Bitcoin work with Coinme?
When you buy Bitcoin through Coinme, whether at a Coinstar kiosk, at Walmart with Coinme Cash, or in the app with your debit card, Coinme purchases Bitcoin on your behalf and deposits it into your Coinme wallet.
From there, you can:
Hold it in your Coinme wallet
Send it to another Bitcoin wallet address
Sell it for cash through the app or at a participating ReadyCode location
Common questions
Is Bitcoin anonymous? Not exactly. Bitcoin transactions are recorded on a public blockchain and can be traced, though the blockchain displays wallet addresses rather than names. As a licensed money transmitter, Coinme does require identity verification.
Can I lose money with Bitcoin? Yes. Bitcoin's price can drop, and if you sell at a lower price than you bought, you'll lose money. Only invest what you're comfortable losing.
Is Bitcoin the same as "crypto"? Bitcoin is one type of cryptocurrency. "Crypto" is a general term covering thousands of different digital currencies, including Bitcoin, Ethereum, Litecoin, and many others.