Bitcoin is a decentralized digital currency, meaning it operates without a central bank or single administrator. Created in 2009 by an anonymous entity known as Satoshi Nakamoto, it was the first cryptocurrency and remains the largest by market capitalization.

Bitcoin transactions are recorded on a public, distributed ledger called a blockchain. This technology ensures transparency and security, preventing double-spending and making it incredibly difficult to alter past transactions. "Miners" verify and add new blocks of transactions to the blockchain, earning newly minted bitcoins and transaction fees as a reward.

Its limited supply (capped at 21 million coins) and increasing institutional adoption contribute to its store-of-value narrative, often dubbed "digital gold." Bitcoin can be used for peer-to-peer payments, as an investment, or as a hedge against inflation. While volatile, its influence on the financial landscape continues to grow.