“Now comes a difficult-to-grasp concept: there is no such thing as a Bitcoin. Of course, there are no physical Bitcoins. You probably already knew that. However, there are also no Bitcoins on a hard drive somewhere. You can’t point to a physical object, digital file, or piece of code and say, “this is a Bitcoin.” Instead, the entire Bitcoin network is only a series of transaction records. Every transaction in the history of Bitcoin lives in the Bitcoin blockchain’s distributed ledger. If you want to prove that you have 20 Bitcoins, the only way you can do it is by pointing to the transactions where you received those 20 Bitcoins.”