$BTC

Bitcoin (BTC) is the most well-known cryptocurrency and the first to exist. It was created in 2009 by an anonymous entity or group under the pseudonym Satoshi Nakamoto.

Here is a breakdown of what it is and how it works:

What is Bitcoin?

Decentralized digital currency: Unlike traditional currencies (such as the Guatemalan quetzal or the US dollar), Bitcoin is not issued or controlled by any government, central bank, or financial institution. It operates on a decentralized network of "nodes" (computers). Peer-to-peer (P2P) payment system: It allows users to send and receive money directly between each other without the need for intermediaries like banks. This reduces transaction costs and time. Limited supply: There will only be a maximum of 21 million Bitcoins in existence. This scarcity, similar to that of gold, is considered one of its key features and a contributing factor to its value. Based on cryptography: It uses advanced cryptographic techniques to secure transactions and control the creation of new units. Hence the term "cryptocurrency". Transparent and immutable: All Bitcoin transactions are recorded in a public and distributed ledger called the "blockchain". Once a transaction is recorded in the blockchain, it cannot be altered or deleted.

How does Bitcoin work?

Blockchain: Think of the blockchain as a giant public digital ledger. Every time someone sends Bitcoin, that transaction is grouped with others into a "block". Mining: "Mining" Bitcoin involves powerful computers competing to solve complex mathematical problems. The first to solve the problem adds the new block of transactions to the blockchain. As a reward for their work, the miner receives a certain amount of newly created Bitcoin and transaction fees.