Bitcoin is a decentralized digital currency that operates on a peer-to-peer network, allowing users to send and receive payments without the need for intermediaries like banks. It was created by an anonymous person or group of people using the pseudonym Satoshi Nakamoto and was released as open-source software in 2009. Bitcoin transactions are secured using cryptography and recorded on a public ledger called the blockchain.
The total supply of Bitcoin is capped at 21 million, making it a deflationary asset. The currency operates on a proof-of-work consensus mechanism, where miners use computational power to solve complex puzzles and validate transactions, earning newly minted bitcoins as rewards.
Bitcoin is often used as a store of value, an investment asset, or for transferring funds across borders without the need for traditional financial institutions. Its price can be highly volatile, influenced by various factors such as market demand, regulatory news, and macroeconomic trends.
