At first glance, it might sound like something from a sci-fi film—but bitcoin is very real, and it’s reshaping the way we think about money.
Since its creation in 2009, bitcoin has gained traction as both a digital asset and a borderless payment method. Major retailers like Overstock, Newegg, and even some Subway locations now accept bitcoin, helping push the cryptocurrency further into the mainstream.
But what exactly is bitcoin? And how does it work? Here’s a simplified guide for curious consumers and forward-thinking merchants alike.
What Is Bitcoin?
Bitcoin is a digital currency—also known as a cryptocurrency—stored and accessed electronically using digital wallets. It’s completely decentralized, meaning it operates without any government, bank, or financial institution.
Think of it as the next evolution of money:
- Physical (cash, coins)
- Electronic (credit/debit cards)
- Virtual (cryptocurrency)
Popular bitcoin wallets include:
These wallets let users store, send, and receive bitcoin securely using encryption technology.
Why Was Bitcoin Created?
Bitcoin was introduced by a developer under the pseudonym Satoshi Nakamoto. The goal? To create a peer-to-peer currency that was transparent, secure, and not controlled by a centralized authority.
In simple terms, bitcoin was designed to:
- Empower consumers with full control of their funds
- Eliminate middlemen (banks, payment processors)
- Enable global, instant transactions of any amount
How Does Bitcoin Work?
Bitcoin runs on a decentralized network of computers, often referred to as “nodes,” that:
- Validate and verify transactions
- Maintain a public ledger (called the blockchain)
- Prevent double-spending and fraud through cryptography
Instead of being routed through a central processor like Visa or Mastercard, bitcoin transactions move directly between users over the internet.
How Are Bitcoins Created?
Bitcoins aren’t printed—they’re mined. Mining is the process of solving complex mathematical problems using powerful computers.
Each time a problem is solved:
- A new block is added to the blockchain
- New bitcoins are released into circulation
- The miner earns a reward (currently 6.25 BTC per block, as of the last halving)
Mining is also what validates and secures the bitcoin network. Every transaction is recorded publicly on the blockchain, though personal identity is never tied to the account, making it both transparent and secure.
Who Accepts Bitcoin?
More businesses are jumping on board every day. In fact:
- One Subway in Pennsylvania saw customers drive hours just to pay with bitcoin
- Thousands of online merchants now accept it through platforms like BitPay or Coinbase Commerce
- Some charities even take donations in bitcoin
Whether you’re selling physical goods or digital services, bitcoin is becoming a legitimate way to get paid.
Why Should Merchants Care?
As consumers become more aware of cryptocurrency, they’re looking for businesses that offer modern, flexible payment options. Accepting bitcoin can help:
- Expand your customer base globally
- Lower transaction fees (compared to credit cards)
- Avoid chargebacks, as all transactions are final
- Position your brand as innovative and future-ready
Bitcoin also appeals to a new generation of customers who value privacy, decentralization, and digital freedom.
Final Thoughts
Bitcoin isn’t just for tech enthusiasts anymore. It’s a real, usable currency—and the demand is growing.
For merchants, now’s the time to explore bitcoin as a payment option. Adoption is easier than ever, and the potential benefits—from brand differentiation to lower costs—are real.
At KORT, we’re committed to helping businesses accept all modern forms of payment—from tap-to-pay and mobile wallets to cryptocurrency.
Want to be among the first to explore crypto-friendly payments with us?
Let’s talk: partners@kortpayments.com |or 1-800-747-6883