Bitcoin (BTC) is the first and most well-known **decentralized cryptocurrency**, created in 2009 by an anonymous person (or group) using the pseudonym **Satoshi Nakamoto**. It operates on a **peer-to-peer network** without the need for a central authority like a bank or government.
### **Key Features of Bitcoin:**
1. **Decentralization**
- No single entity controls Bitcoin; it is maintained by a global network of nodes (computers) running Bitcoin software.
2. **Blockchain Technology**
- Transactions are recorded on a **public ledger (blockchain)**, ensuring transparency and immutability.
3. **Limited Supply**
- Only **21 million BTC** will ever exist, making it a deflationary asset (similar to digital gold).
4. **Proof-of-Work (PoW) Consensus**
- Miners use computational power to validate transactions and secure the network, earning BTC as rewards.
5. **Pseudonymity**
- Bitcoin addresses are not directly linked to identities, but transactions are traceable on the blockchain.
### **How Bitcoin Works:**
- **Transactions**: Users send BTC to each other using cryptographic keys (public & private).
- **Mining**: Miners compete to solve complex math problems to add new blocks to the blockchain.
- **Halving**: Every 210,000 blocks (~4 years), mining rewards are cut in half (last halving: April 2024; next: ~2028).
### **Use Cases:**
- **Digital Gold**: Store of value (many see it as "hard money" like gold).
- **Peer-to-Peer Payments**: Fast, borderless transactions (though slower than some newer cryptos).
- **Hedge Against Inflation**: Due to its fixed supply, some investors use it to protect against fiat currency devaluation.
### **Challenges:**
- **Volatility**: BTC's price can swing dramatically.
- **Scalability**: Limited transaction speed (~7 TPS vs. Visa’s ~24,000 TPS). Solutions like the **Lightning Network** help.
- **Regulation**: Governments have varying stances (some ban it, others embrace it).
### **Current Status (2024):**
- **Price**: Highly volatile (check [CoinGecko](https://www.coingecko.com/) or [CoinMarketCap](https://coinmarketcap.com/) for live price).
- **Adoption**: Accepted by some businesses, ETFs approved in the US (e.g., BlackRock’s spot Bitcoin ETF).
- **Competition**: Faces rivals like Ethereum, Solana, etc., but remains the dominant cryptocurrency by market cap.
