NEW YORK (AP) — Bitcoin is a type of digital currency that allows people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties.Its origins have long been a mystery — though an Australian man long rumored to have ties to bitcoin has come forward claiming to be its creator.Who is this man, and how does this system work?Here's a brief look at bitcoin: File - This is a Oct.16, 2015 file photo of a Bitcoin ATM.An Australian man long thought to be associated with the digital currency Bitcoin has publicly identified himself as its creator.BBC News said Monday, May 2, 2016 that Craig Wright told the media outlet he is the man previously known by the pseudonym Satoshi Nakamoto.The computer scientist, inventor and academic says he launched the currency in 2009 with the help of others.(Dominic Lipinski/PA via AP, File) UNITED KINGDOM OUT Bitcoin is a digital currency that is not tied to a bank or government and allows users to spend money anonymously.

The coins are created by users who "mine" them by lending computing power to verifying other users' transactions.They receive bitcoins in exchange.The coins also can be bought and sold on exchanges with U.S.dollars and other currencies.Their value has fluctuated over time.At its height in late 2013, a single bitcoin was valued above $1,100.On Monday, it was worth about $445.Because the currency isn't formally regulated, its legality is a bit fuzzy.The currency has also drawn the ire of many in law enforcement and cybersecurity because it's difficult to trace, making it a currency of choice for hackers behind ransomware attacks.But in September, New York state regulators approved their first license for a company dealing in bitcoin.Bitcoins are basically lines of computer code that are digitally signed each time they travel from one owner to the next.Transactions can be made anonymously, making the currency popular with libertarians as well as tech enthusiasts, speculators — and criminals.SHOULD I TRADE IN ALL MY CASH FOR BITCOINS?That would be a questionable decision.

Many businesses such as blogging platform WordPress and retailer Overstock have jumped on the bitcoin bandwagon amid a flurry of media coverage.logiciel pour bitcoinLeading bitcoin payment processor BitPay works with more than 60,000 businesses and organizations, while the total number of bitcoin transactions has climbed to over 200,000 per day, more than double from a year ago, according to bitcoin wallet site blockchain.info.Still, its popularity is low compared with cash and cards, and many individuals and businesses won't accept bitcoins for payments.HOW BITCOINS ARE KEPT SECUREThe bitcoin network works by harnessing individuals' greed for the collective good.bitcoin forum custom hardwareA network of tech-savvy users called miners keep the system honest by pouring their computing power into a blockchain, a global running tally of every bitcoin transaction.buy litecoin credit card

The blockchain prevents rogues from spending the same bitcoin twice, and the miners are rewarded for their efforts by being gifted with the occasional bitcoin.bitcoin op de beursAs long as miners keep the blockchain secure, counterfeiting shouldn't be an issue.Much of the mischief surrounding bitcoin occurs at the places where people store their digital cash or exchange it for traditional currencies, like dollars or euros.sell bitcoin to inrIf an exchange has sloppy security, or if a person's electronic wallet is compromised, then the money can easily be stolen.is bitcoin viableThe biggest scandal involved Japan-based bitcoin exchange Mt.Gox, which went offline in February 2014.Its CEO, Mark Karpeles, said tens of thousands of bitcoins worth several hundred million dollars were unaccounted for.

He was arrested on suspicion of inflating his cash account in August.HOW BITCOIN CAME TO BEIt's a mystery.Bitcoin was launched in 2009 by a person or group of people operating under the name Satoshi Nakamoto.Bitcoin was then adopted by a small clutch of enthusiasts.Nakamoto dropped off the map as bitcoin began to attract widespread attention.But proponents say that doesn't matter: The currency obeys its own internal logic.WHO IS THE REAL NAKAMOTO?There's been plenty of speculation on Nakamoto's identity over the years.In December, the technology magazine Wired and the website Gizmodo both concluded that Australian computer scientist, inventor and academic Craig Wright was probably the man behind the pseudonym.The reports offered detailed circumstantial, but no hard proof, and hedged their conclusions accordingly.On Monday, Wright told BBC News, the Economist and GQ that he is Nakamoto.(He also put out a press release .)Wright said he launched the currency in 2009 with the help of others.

Wright told the BBC that he decided to make his identity known to stop the spread of "misinformation" about bitcoin.If Wright is the founder, he is likely a very wealthy person.FILE - In this April 7, 2014 file photo, a man arrives for the Inside Bitcoins conference and trade show in New York.(AP Photo/Mark Lennihan, File) This framegrab made available by the BBC on Monday May 2, 2016 shows creator of the Bitcoin, Craig Wright speaking in London.Australian Craig Wright, long rumored to be associated with the digital currency Bitcoin, has publicly identified himself as its creator, a claim that would end one of the biggest mysteries in the tech world.BBC News said Monday that Craig Wright told the media outlet he is the man previously known by the pseudonym Satoshi Nakamoto.(BBC News via AP) FILE - In this Thursday, March 20, 2014, file photo, Christopher David uses a Robocoin kiosk to sell bitcoins outside of the 500 Startups' Bitcoinferance in Mountain View, Calif.Bitcoin is an online currency that allows people to make one-to-one transactions, buy goods and services and exchange money across borders without involving banks, credit card issuers or other third parties.