Bitcoin is the world’s first decentralized digital currency, created in 2009 by an unknown person or group using the pseudonym Satoshi Nakamoto. Unlike traditional currencies issued by governments and controlled by banks, Bitcoin operates on a peer-to-peer network using blockchain technology. This allows users to send and receive money over the internet without the need for intermediaries like banks or payment processors.
The core technology behind Bitcoin is the blockchain—a public, transparent, and immutable digital ledger that records all Bitcoin transactions. Each transaction is grouped into a block, which is then added to a chain of previous transactions, forming a continuous record. This system is secured by cryptographic algorithms and maintained by a network of computers called miners.
Miners use powerful computers to solve complex mathematical puzzles, verifying transactions and adding them to the blockchain. In return, they are rewarded with newly created bitcoins and transaction fees. This process is known as mining and also serves to release new bitcoins into circulation.
Bitcoin is limited in supply—only 21 million bitcoins will ever exist—making it resistant to inflation. It can be stored in digital wallets and accessed via private keys. People use Bitcoin for various purposes: online purchases, international money transfers, investment, and as a hedge against economic instability.
Despite price volatility and regulatory challenges, Bitcoin has gained widespread acceptance and is often referred to as "digital gold." It represents a revolutionary shift in how we think about money, value transfer, and financial freedom in the digital age.