#Bitcoin110KNext? Bitcoin is a decentralized digital currency that allows peer-to-peer transactions without the need for intermediaries like banks. Created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto, Bitcoin operates on a decentralized network of computers that record transactions on a public ledger called the blockchain. Bitcoins are created through a process called mining, in which specialized computers solve complex mathematical problems to validate transactions. Bitcoin has gained popularity as a store of value and a means of exchange, but its price can be highly volatile.