Although Bitcoin was not the first attempt to create a digital currency of this kind, it was the most successful. As a result, it has become known as the predecessor to almost all cryptocurrencies that emerged afterward. Over the years, the concept of decentralized virtual currency has gained wide acceptance among regulators and government bodies. Despite being officially recognized as a means of payment or store of value in a few countries, Bitcoin has managed to establish its position and continues to coexist with the financial system despite ongoing scrutiny and discussion.

Important

At the beginning of the cryptocurrency boom in 2017, Bitcoin's market capitalization represented approximately 87% of the total cryptocurrency market. By late August 2022, Bitcoin's market share had dropped to 39.6%, but it rebounded by June 2024 to exceed 48%. Bitcoin uses a consensus protocol called Proof of Work (PoW), which involves network-level competition to solve a cryptographic problem before the network begins to confirm and seal transactions. Bitcoin was primarily created in September 2022 as a decentralized digital currency, intended to serve as a peer-to-peer electronic cash system, enabling individuals to send and receive value without the need for a central authority. Over time, it has also come to be viewed as a store of value, akin to "digital gold," representing a hedge against inflation.