@Lagrange Official
&LA
Bitcoin (BTC) is the world's first decentralized cryptocurrency, introduced in 2008 by an anonymous person or group using the pseudonym **Satoshi Nakamoto**. It was launched in January 2009 with the release of its open-source software.
### **Key Features of Bitcoin:**
1. **Decentralization** – No central authority (like a bank or government) controls Bitcoin. It operates on a peer-to-peer network.
2. **Blockchain Technology** – Transactions are recorded on a public ledger called the **blockchain**, secured by cryptographic principles.
3. **Limited Supply** – Only **21 million BTC** will ever exist, making it a deflationary asset (unlike fiat currencies that can be printed infinitely).
4. **Proof-of-Work (PoW)** – Bitcoin uses mining (computational work) to validate transactions and secure the network. Miners are rewarded with newly minted BTC.
5. **Pseudonymity** – Bitcoin addresses are not directly linked to identities, but transactions are public and traceable.
### **How Bitcoin Works:**
- **Transactions** – Users send BTC to each other using cryptographic keys (public and private).
- **Mining** – Miners solve complex math problems to add new blocks to the blockchain, earning BTC as a reward (currently **6.25 BTC per block**, halving every 4 years).
- **Wallets** – Software or hardware tools that store private keys to access and manage Bitcoin.
### **Uses of Bitcoin:**
- **Digital Gold** – Many see Bitcoin as a store of value (like gold) due to its scarcity.
- **Peer-to-Peer Payments** – Allows borderless, censorship-resistant transactions.
- **Inflation Hedge** – Some investors hold BTC to protect against fiat currency devaluation.
### **Challenges:**
- **Volatility** – Bitcoin's price can swing dramatically in short periods.
- **Scalability** – The Bitcoin network processes ~7 transactions per second (slower than traditional payment systems like Visa).
- **Regulation** – Governments have varying stances on Bitcoin (some ban it, others embrace it).
### **Current Status (2024):**
