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It’s the first example of a growing category of money known as cryptocurrency. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.This network also processes transactions made with the virtual currency, effectively making bitcoin its own payment network. The bitcoin protocol – the rules that make bitcoin work – say that only 21 million bitcoins can ever be created by miners.However, these coins can be divided into smaller parts (the smallest divisible amount is one hundred millionth of a bitcoin and is called a ‘Satoshi’, after the founder of bitcoin).However, bitcoin’s most important characteristic, and the thing that makes it different to conventional money, is that it is .No single institution controls the bitcoin network.
The mathematical formula is freely available, so that anyone can check it.