The Economist explains: How does Bitcoin work?

  • There is no way for a central bank to issue a flood of new Bitcoins and devalue those already in circulation.
  • But most people will be reluctant to adopt Bitcoin while the software required to use it remains so complex, and the value of an individual Bitcoin is so volatile.
  • Bitcoins are mathematically generated as the computers in this network execute difficult number-crunching tasks , a procedure known as Bitcoin “mining”.
  • Unlike traditional currencies, which are issued by central banks, Bitcoin has no central monetary authority.
  • BITCOIN, the world’s “first decentralised digital currency”, was launched in 2009 by a mysterious person (or persons) known only by the pseudonym Satoshi Nakamoto.

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@brianNphan: “@TheEconomist explains: How does #Bitcoin work?”


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The Economist explains: How does Bitcoin work?