Conventional currency has been based on
gold or silver. Theoretically, you knew that if you handed over a dollar at the
bank, you could get some gold back (although this didn’t actually work in
practice). But bitcoin isn’t based on gold; it’s based on mathematics.
Around
the world, people are using software programs that follow a mathematical
formula to produce bitcoins. The mathematical formula is freely available, so
that anyone can check it.
The
software is also open source, meaning that anyone can look at it to make sure
that it does what it is supposed to.
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