Bitcoin (BTC) is a digital or virtual currency created in 2009 that uses peer-to-peer technology to facilitate instant payments. It is a cryptocurrency, a virtual currency designed to act as money and a form of payment outside the control of any one person, group, or entity, thus removing the need for a central authority or bank. Bitcoin transactions are messages that state the movement of bitcoins from senders to receivers, and they are digitally signed using cryptography. Bitcoin payments are transfers of funds in Bitcoins that a customer initiates to buy goods or services. To make a Bitcoin payment, a customer should have a crypto wallet with some Bitcoins on it, and a Bitcoin wallet address of the merchant. When a customer puts the address into a dedicated field in the wallet, specifies the amount to send and confirms the transaction, a Bitcoin payment is made.

Bitcoin payments can be accepted by brick-and-mortar stores that display a sign that says “Bitcoin Accepted Here,” and the transactions can be handled with the requisite hardware terminal or wallet address through QR codes and touchscreen apps. An online business can easily accept Bitcoin by adding this payment option to its other online payment options, such as credit cards and PayPal. Many companies that have already implemented Bitcoin payment methods like the safety of online payments, the absence of fraud and chargebacks, as well as low transaction fees.

Bitcoins history as a store of value has been turbulent, and it has gone through several boom and bust cycles over its relatively short lifespan. Its utility for payments has been stymied somewhat by its price volatility, which can change dramatically day to day and even minute to minute, making it a less than ideal payment option. However, Bitcoin remains the worlds largest cryptocurrency by market capitalization and has inspired a host of other cryptocurrencies in its wake.