Created in 2009 by an unknown source (using the name “Satoshi Nakamoto”) as the first type of cryptocurrency or digital cash, Bitcoin does not have a single bank or administrator to act as a third party in digital transactions. This makes for an easy and secure way to transfer money online from person to person.
Just like cash, Bitcoin can be traded for goods and services with vendors who accept it. Bitcoin exchanges are tracked and stored on a public ledger referred to as blockchain. This system links all peer-to-peer transactions and ensures that they are legitimate.
The popularity of Bitcoin has inspired the creation of other virtual currencies, but Bitcoin remains the most well-known.
It should be noted that the Securities and Exchange Commission (SEC) has not yet approved a bitcoin exchange-traded fund (ETF) as of June 19th, 2019.