... The basic idea behind BitCoin is to create, by means of a mathematical algorithm, a digital good that is scarce and fungible.
Nakamote devised a software system that enabled people to obtain BitCoins as a reward for solving complex mathematical puzzles. The resulting coins are then used for online trading. Nakamote also arranged that the number of BitCoins can never exceed 21 million. ... (Frank_Shostak)
Read More: The Bitcoin Money Myth