Bitcoin (BTC) is a decentralized digital currency that operates without a central authority or government. It was created in 2008 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto and introduced in 2009. Bitcoin transactions are recorded on a public ledger called the blockchain, which ensures transparency and security.
Key features of Bitcoin include:
Decentralization: Bitcoin operates on a peer-to-peer network without relying on intermediaries like banks or governments.
Limited Supply: The total supply of Bitcoin is capped at 21 million, making it a deflationary asset.
Mining: New Bitcoins are generated through a process called mining, which involves solving complex mathematical problems. Miners are rewarded with newly created Bitcoin and transaction fees.
Security: Bitcoin uses cryptographic techniques to secure transactions and control the creation of new units.
Anonymity: While Bitcoin transactions are public and recorded on the blockchain, users can maintain a level of anonymity by using pseudonymous wallet addresses.
Bitcoin is often referred to as "digital gold" due to its potential as a store of value and hedge against inflation. Over the years, it has gained significant attention as both a form of investment and a method of payment. However, its price volatility, regulatory concerns, and scalability challenges are ongoing topics of discussion.
