What is bitcoin and how does it work

Hey guys, today I'm gonna to share what is bitcoin and how does it work ?
so lets start...

Few technologies have the ability to stir passionate online debate and baffle the vastmajority of the population as bitcoin. The virtual currency has been a constant source of interest and confusion since it thrust itself into the mainstream more than five years ago.But interest in bitcoin is now greater than ever. Its value has soared to above $4,000, a new high point, turning some people who hoarded vast amounts early on into millionaires.
But why? Is bitcoin the future of currency? Is it currency at all? What is it for? And should I buy some? Read on to have your questions answered.

What is bitcoin?

Bitcoin is a digital currency created in 2009 that uses decentralized technology for secure payments and storing money that doesn't require banks or people's names. It was announced on an email circular as a way to liberate money in a similar way to how the internet made information free.

How does it work?

Bitcoin works on a public ledger called block chain, which holds a decentralized record of all transactions that is updated and held by all users of the network.

To create bitcoins, users must generate blocks on the network. Each block is created cryptographically by harnessing users' computer power and is then added to the blockchain, letting users earn by keeping the network running.

 A limit for how many bitcoins can be created is built into the system so the value can't be diluted.  The maximum amount is just under 21 million bitcoin. There are currently 15 million in circulation, each of which was worth more than $4,000 ($3,080) at the time of writing.

What affects its price?

The price of a bitcoin has jumped up and down since it first entered the mainstream consciousness in 2013. That year prices rose by almost 10,000 per cent before the collapse of Mt Gox, the biggest online bitcoin exchange, sent it crashing.

How many people use bitcoin?

There are as many as 5.8 million users that have cryptocurrency wallets, according to research from the University of Cambridge, the majority of whom use bitcoin. 

What is it used for?

Bitcoin is has a range of uses, including funding companies, investing cash and transferring money without fees. It is commonly associated with criminal activity such as drug dealing, cyber crime and money laundering, since it can be near-impossible to tie a bitcoin wallet to any one individual.
Bitcoin can be spent online and at select retailers in the UK. They include CEX stores, Dell's website, Your Sushi restaurants, and some pubs. A full list of online and offline businesses that accept bitcoin is available here. They can also be withdrawn at a couple of dozen bitcoin ATMs, which can be found here. 
Others simply hold their bitcoins, hoping they will accumulate in value and prove to be a lucrative investment. Its price is notoriously volatile, and early investors are now sitting on massive gains.