$BTC refers to Bitcoin, the world's first and most well-known cryptocurrency. Here's a quick breakdown:
1. What Is Bitcoin?
Bitcoin is a decentralized digital currency created in 2009 by an unknown person or group using the name Satoshi Nakamoto. It allows peer-to-peer transactions without the need for a central authority like a bank.
2. Key Features:
Blockchain Technology: All transactions are recorded on a public ledger (blockchain), making them transparent and immutable.
Limited Supply: Only 21 million bitcoins will ever exist, making it deflationary by design.
Mining: New bitcoins are created through a process called mining, where powerful computers solve complex puzzles.
3. Use Cases:
Digital money for goods and services
Store of value (often called "digital gold")
Speculative investment
Hedge against inflation (according to some investors)
4. Price Volatility:
Bitcoin's price is highly volatile. It has experienced massive bull runs followed by sharp corrections.
5. Risks:
Regulatory uncertainty
Security risks (e.g., wallet hacks)
Market manipulation and volatility