Bitcoin is the first decentralized cryptocurrency, introduced in 2009 by the pseudonymous Satoshi Nakamoto. It operates on a peer-to-peer network, allowing users to send and receive payments without intermediaries like banks. Transactions are recorded on a public ledger called the blockchain, which ensures transparency and security through cryptographic methods. The total supply of Bitcoin is capped at 21 million coins, making it a deflationary asset. New bitcoins are created through a process known as mining, where powerful computers solve complex mathematical problems. Approximately every four years, the reward for mining a block is halved in an event called "halving," reducing the rate at which new bitcoins are introduced into circulation. This built-in scarcity has contributed to Bitcoin's reputation as "digital gold" and a store of value. Despite its volatility and regulatory challenges, Bitcoin has gained significant adoption worldwide, with some countries recognizing it as legal tender and many businesses accepting it as a form of payment.
