How exactly Bitcoin will be categorized is still a matter of discussion. Bitcoin; can be defined as a type of currency, a savings instrument, a payment network or an asset class. But what is the most accurate classification for Bitcoin? Fortunately, it is easier to define what Bitcoin really is: Bitcoin is Software. Don't be fooled by stock images of shiny coins decorated with Far - East symbols regarding money. Bitcoin is an all-digital phenomenon and consists of a series of protocols and processes. At the same time, Bitcoin is the most successful attempt to create virtual money using the sciences of encryption, coding, and code breaking. Bitcoin has inspired hundreds of imitators but still remains the largest digital currency in terms of market cap. This is the most important difference Bitcoin has had in its more than ten-year history. (A general note: according to the Bitcoin Foundation, the word "Bitcoin" is capitalized when it refers to the cryptocurrency as an entity, and it is given as "bitcoin" when it refers to a quantity of the currency or the units themselves. Bitcoin is also abbreviated as "BTC." Throughout this article, we will alternate between these usages.)