The payments in the system are recorded in a public ledger using its own unit of account, which is also called bitcoin.Payments work peer-to-peer without a central repository or single administrator, which has led the US Treasury to call bitcoin a decentralized virtual currency.
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Users can send and receive bitcoins electronically for an optional transaction fee using wallet software on a personal computer, mobile device, or a web application.
Bitcoin as a form of payment for products and services has seen growth,and merchants have an incentive to accept the digital currency because fees are lower than the 2-3% typically imposed by credit card processors.
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Although its status as a currency is disputed, media reports often refer to bitcoin as a cryptocurrency or digital currency.