Bitcoin (BTC) is the world's first decentralized digital currency, created in 2008 by an anonymous entity or group known as Satoshi Nakamoto, and launched in 2009. It operates on a peer-to-peer network without the need for a central authority like a bank or government.
Key aspects of Bitcoin:
Decentralized Network: Bitcoin transactions are verified and recorded by a network of computers (nodes) around the world. Each node maintains an independent copy of a public distributed ledger called the "blockchain."
Blockchain: The blockchain is a chronological and immutable record of all Bitcoin transactions. Transactions are grouped into "blocks," and each new block contains a cryptographic hash of the previous block, creating a "chain." This structure makes it incredibly difficult to tamper with past transactions.
Cryptographic Security: Bitcoin uses strong cryptographic techniques, including public-private key cryptography, to secure transactions and verify ownership. Your public key is used to receive Bitcoin, while your private key acts like a password to authorize sending Bitcoin.
Finite Supply: There will only ever be 21 million Bitcoins created, making it a scarce digital asset. This limited supply is a key factor in its value proposition as a potential store of wealth.
Digital Currency: Bitcoin was initially designed as a peer-to-peer electronic cash system for direct payments without intermediaries.
Store of Value: Due to its limited supply and decentralized nature, many view Bitcoin as a "digital gold" or a store of value, similar to precious metals, especially in times of economic uncertainty.
Investment/Speculation: Bitcoin is widely used for investment and speculative trading, with its price being highly volatile.
Peer-to-Peer Financial Tool: It allows for censorship-resistant and global transfers of value.
Bitcoin's price history is marked by extreme volatility and significant growth over time.
It saw major price surges in 2013, 2017, and again in recent years.
For example, it broke $100,000 for the first time in December 2024.
You can buy and sell Bitcoin on various cryptocurrency exchanges. Some popular options include:
Binance, Coinbase, Kraken, MoonPay, Unocoin (in India)
When choosing an exchange, consider factors like fees, security, available payment methods, and user reviews. You'll typically need to go through a Know Your Customer (KYC) process, which involves verifying your identity.
Important Note: Investing in Bitcoin and other cryptocurrencies carries significant risks due to their high volatility. It's crucial to do your own research and understand the risks involved before investing.