How does Bitcoin work?

[pictoranimosity]

Each bitcoin (trading symbol “BTC,” though “XBT” is also used) is a computer file stored in a digital wallet on a computer or smartphone. To understand how the cryptocurrency works, it helps to understand these terms and a little context.

[aldermansource]

Bitcoin is powered by open-source code known as blockchain, which creates a shared public ledger. Each transaction is a “block” that is “chained” to the code, creating a permanent record of each transaction. Blockchain technology is at the heart of more than 6,000 cryptocurrencies that have followed in Bitcoin’s wake.

[pictoranimosity]

Bitcoin is powered by open-source code known as blockchain, which creates a shared public ledger. Each transaction is a “block” that is “chained” to the code, creating a permanent record of each transaction.

A bitcoin wallet contains a public key and a private key, which work together to allow the owner to initiate and digitally sign transactions, providing proof of authorization.

[Ashipa]

Almost everyone knows that Bitcoin is mined, but most people think that you need to invest into expensive equipment in order to start mining it yourself. This is false, as there are great bitcoin cloud mining websites like Hashing31 that will rent you their equipment to mine. Doing it this way resolves all problems with the lack of space and cooling issues, so all that's left is Bitcoins that will be deposited to your wallet regularly.