In the past few years media has been all about bitcoin. From social media to news broadcasts and even government legislation, not a single day has passed without something bitcoin-related being in the spotlight. The importance of emergence of bitcoin is often compared even to the emergence of the Internet. But oddly, most of us just nod along still without fully understanding what bitcoin actually is. So, to cut through some of the confusion we’ll explain the bitcoin phenomenon as easy as it could get.

What does bitcoin mean?

Even people closely related to “cryptocurrency world” often struggle with this simple question. As stated in original white paper, the document where the creator of bitcoin explains the system to the public, bitcoin is “a purely peer-to-peer version of electronic cash that would allow online payments to be sent directly from one party to another without going through a financial institution.” That makes bitcoin the world’s first crypto currency, a digital asset invented that was designed to work as a currency. Simply put – a form of electronic cash.