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Every machine that mines bitcoin and processes transactions makes up a part of the network, and the machines work together.

That means that, in theory, one central authority can’t tinker with monetary policy and cause a meltdown – or simply decide to take people’s bitcoins away from them, as the Central European Bank decided to do in Cyprus in early 2013.

The idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees. This currency isn’t physically printed in the shadows by a central bank, unaccountable to the population, and making its own rules.

Those banks can simply produce more money to cover the national debt, thus devaluing their currency.

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.

And if some part of the network goes offline for some reason, the money keeps on flowing.

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