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Bitcoin is a decentralized digital currency that operates without a central authority like a bank or government. It was invented in 2008 by an unknown person or group using the pseudonym Satoshi Nakamoto and was released as open-source software in 2009. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public ledger called the blockchain. This system ensures transparency and security, allowing users to send and receive funds globally without intermediaries.
Unlike traditional currencies, Bitcoin has a fixed supply of 21 million coins, making it deflationary by nature. It is created through a process called mining, where powerful computers solve complex mathematical problems to validate transactions and earn new bitcoins as a reward. This mining process also secures the network.
Bitcoin has gained popularity both as a store of value, often referred to as "digital gold," and as a medium of exchange. Its price can be highly volatile, influenced by factors such as market demand, regulatory news, technological developments, and macroeconomic trends. Over the years, Bitcoin has sparked significant interest from investors, tech enthusiasts, financial institutions, and governments worldwide.
Despite ongoing debates about its environmental impact and regulatory status, Bitcoin continues to shape the future of finance and challenge traditional monetary systems.
