Bitcoin (BTC) is the first and most well-known decentralized cryptocurrency, created in 2009 by the pseudonymous Satoshi Nakamoto. It operates on a peer-to-peer network using blockchain technology, a distributed public ledger that records transactions securely and transparently without the need for intermediaries like banks. New bitcoins are created through a process called "mining," where powerful computers solve complex cryptographic puzzles to validate and add blocks of transactions to the blockchain.
Bitcoin's value has experienced significant volatility since its inception, attracting both investors and those seeking an alternative to traditional financial systems. It's used for online transactions, as a store of value, and increasingly accepted by merchants. Its limited supply of 21 million coins is a key characteristic. While offering benefits like lower transaction fees and independence from central authorities, Bitcoin also faces challenges related to scalability, energy consumption, and regulatory uncertainty.
